Human Resources

Compared to other states, Connecticut has many pro-worker policies that businesses need to be aware of when processing payroll. Some of the major items include: Connecticut has a progressive state income tax that increases along with an employee’s income. Connecticut has one of the highest minimum wage rates in the country. Connecticut defaults to weekly paychecks, especially for hourly employees; rules may differ for executive, administrative, and professional employees. Connecticut is a no-fault mandatory state when it comes to providing workers’ compensation. Connecticut payroll can get complex. You may find payroll software makes it easier. We recommend payroll software like . It not only files and pays your payroll taxes but also covers any penalties you are charged if its reps make a mistake—and with the premium plan, it will cover your mistakes too. It lets you pay employees via direct deposit or check, even with same-day payment options. Sign up for a free trial or discounted rate. Running Payroll in Connecticut—Step-by-Step Instructions Step 1: Set up your business as an employer. At the federal level, you need your Employer Identification Number (EIN) and an account in the Electronic Federal Tax Payment System (EFTPS). Step 2: Register with the State of Connecticut. In Connecticut, you will need to register with the Connecticut Department of Revenue Services. To register, you will need to complete the Business Taxes Registration Application online through myconneCT. This will allow you to register for various taxes including withholding tax, sales and use tax, and business entity tax. If you need assistance, the Connecticut Department of Revenue Services provides an FAQ section to assist businesses. Step 3. Set up your payroll process. You’ll need to set up systems to support your payroll process; this includes selecting a pay schedule and deciding how you’ll pay employees, how you’ll process taxes and deductions, etc. Step 4: Collect employee payroll forms. The best time to collect payroll forms is during onboarding. Payroll forms include W-4, I-9, and direct deposit authorization information. Connecticut requires you to submit form CT-W4 as well. Step 5: Collect, review, and approve time sheets. You’ll need to track time for hourly and other nonexempt employees to ensure you pay them for the time they worked. If you’re not using a time and attendance system, downloading one of our free time sheet templates will help you stay organized. Step 6: Calculate payroll and pay employees. You can process payroll yourself, use an Excel payroll template, or select a payroll service. Each option comes with benefits and drawbacks. Normally you have the option to pay employees in a variety of ways including by cash, check, direct deposit, or pay cards. Step 7: File payroll taxes with the federal and state governments. The IRS has forms and instructions on filing federal taxes, including unemployment. You can also order official tax forms from the IRS. For Connecticut state taxes, you remit your taxes on either a weekly, monthly, quarterly or annual basis depending on your employer classification. New employers (within the first calendar year of registering in Connecticut) should remit quarterly. Seasonal, household, and agricultural employers have their own schedules. For more information, please see the Connecticut Employer’s Tax Guide. Please Note: If payday falls on a Saturday, Sunday, Monday, or Tuesday, the due date is the second Wednesday following the payday. For example, if payday falls Tuesday the ninth, the due date is Wed the 17th. If payday falls on a Wednesday, Thursday, or Friday, the due date is the Wednesday following the payday. So if payday falls Friday the fifth, the due date is Wednesday the 10th. Step 8. Document and store your payroll records. It is important to retain records for all employees for several years (federal law requires three years for payroll documents and four for payroll tax records), including those who are no longer with your company. Connecticut requires that you maintain the following employee information for three years: Name Address Job Daily and weekly hours worked (nearest 15-minute increment) Wage rate Overtime wages Deductions per pay period Additional payments per pay period Total wages per pay period Youth work certificates In addition, you must keep these records at the place of employment unless you receive an exception from the Connecticut Labor Commissioner. Step 9. Do year-end payroll tax reports. The federal forms that are required by law are W-2s (for employees) and 1099s (for contractors). These forms should be provided to employees and contractors by Jan. 31 of the following year. State W-2s are also required for Connecticut and these forms are due by Jan. 31 as well. Download our free checklist to help you stay on track while you’re working through these steps: Connecticut Payroll Laws, Taxes & Regulations Federal law mandates that you pay income taxes, Social Security, Medicare, and Federal Unemployment Tax Act (FUTA) taxes. Called FICA taxes, Social Security and Medicare are withheld from each employee’s paycheck: Social Security at 6.2% and Medicare at 1.45%. You also have to pay a matching employer’s amount out of your bank account. FUTA is an employer-only tax that is 6% on the first $7,000 paid to each employee in that year. For the most part, Connecticut payroll laws, taxes, and regulations provide more protection to employees than the federal law—in particular, the lowest-paid employees. Its state income tax is progressive with higher income individuals paying more. Connecticut also has a higher minimum wage, stricter requirements on final pay, and specific rules on paying employees via pay cards. Since our last update: You’ll find fewer regulations than in past updates. We’ve included only those rules listed under Connecticut state regulations as found in eregulations.ct.gov, the official website for laws in the state of Connecticut. Connecticut Income Taxes Connecticut has a progressive income tax that taxes an employee’s income at a higher rate as their income goes up, which is similar to the federal income tax guidelines. If you’re not using a payroll provider, you’ll need to use Connecticut’s withholding tax table to determine how much to withhold from each employee’s paycheck. State Unemployment Tax Connecticut’s state unemployment tax (SUTA) rate is 3% for new employers. For established employers, the rate is based on your experience rate, which includes how many of your former employees applied for unemployment benefits and the fund balance tax rate, which is based on the solvency of Connecticut’s unemployment fund. In 2022, the rate can be anywhere between 1.9% and 6.8%. The percentages for both new and experienced employers are on the first $15,000 of taxable income per individual employee. When you pay SUTA on time and in full, you may qualify for up to a 5.4% deduction on your FUTA taxes, potentially taking that rate down to 0.6%. Workers’ Compensation In Connecticut, you are required to provide workers’ compensation for all businesses with at least one employee with very few exceptions. These exceptions include employees who work occasionally/as-needed, domestic employers who work at a private home for no more than 26 hours weekly, and corporate executives who decline coverage. Connecticut is also a no-fault state, meaning that workers’ compensation claims can be covered regardless of the reason behind the workplace injury. Employees are required to report any workplace injury immediately, and the employer/insurer has 28 days to start payment for lost wages or deny the employee’s claim. The cost of workers’ compensation insurance is around $1.10 for each $100 payroll you processed. For example, a company that processes $500,000 of payroll can expect to pay around $5,500 in insurance. Minimum Wage & Tips Most jobs will require you to pay at least minimum wage. Connecticut’s 2022 minimum wage is $14 per hour for nontipped employees (much higher than the $7.25 federal minimum wage). This is an increase of $1 from the previous minimum wage. State law allows employers in Connecticut to take up to a $7.62 tip credit for hotel and restaurant workers and a $5.77 tip credit for bartenders, which puts the minimum cash wage that has to be paid by employers at $6.38 and $8.23 per hour, respectively. Minimum Wage for Minors (first 90 days) For the first 200 hours of employment, persons under 18, except for emancipated minors, may receive reduced wages. They cannot be less than 85% of fair wage (including minimum wage) or at least $10.10 per hour for the first 90 days of employment. Overtime Connecticut generally follows federal guidelines regarding overtime. You’ll need to pay 1.5 times the regular hourly rate for any hours your employees work over 40 in a workweek. For help ensuring your overtime calculations are correct, please check out our guide on calculating overtime. Different Ways to Pay Employees In Connecticut, you are able to pay employees via standard payment options. These options include check, cash, pay cards, or direct deposit. Check out our guide on how to pay employees for more in-depth information. Minimum Pay Frequency Connecticut requires that you pay employees at least weekly. Payday cannot come more than eight days after the end of the pay period. Educational institutions may be exempted from this rule if negotiated with employees in a collective bargaining agreement. Executives, administrative, and professional employees may be paid less frequently by agreement. If you pay an employee solely on commission, they must be paid weekly at least a minimum fair wage for each hour worked. Commissions must be settled monthly. Pay Stub Laws Connecticut does not have regulations regarding pay stubs for employees. However, we recommend that you provide statements that include hours worked, gross earnings for regular hours and overtime, itemized deductions, and net pay. Paycheck Deduction Rules Connecticut does not allow you to deduct the following from an employee’s paycheck: Shortage of cash Lost or damaged possessions of the company Equipment, supplies, or uniforms Bad checks You are able to deduct these common items from an employee’s check: Taxes Garnishments and levies Benefits Reimbursements Apparel supplied for the course of employment; you can deduct up to $1.50 per week or the actual cost for maintenance and laundering Final Paycheck Laws Connecticut no longer regulates when a final paycheck must be paid. Best practices, however, dictate that an employee’s last paycheck be paid on the next regularly scheduled payday or sooner. Connecticut HR Laws That Affect Payroll Connecticut has stricter time off requirements than the federal government for many Connecticut employees. It also has stricter laws on youth employment. However, it does not require employers to purchase disability insurance. Hourly Computations All time must be reckoned to the nearest unit of 15 minutes. Connecticut New Hire Reporting Connecticut requires that you report new hires within 20 days of the hire date. You can report new hires online through the Connecticut Department of Labor’s New Hire Reporting website. Breaks, Lunches & Time-Off Requirements Connecticut does not mandate vacation leave. However, all other time-off requirements supersede federal law as they are more advantageous to Connecticut employees. There’s a special sick leave law and new requirements for offering state family leave. Click through the tabs below to learn what you need to comply with. State Disability Insurance There is no state disability program in Connecticut or a requirement for companies to purchase disability insurance. However, it is a good idea to have, both for your employees and yourself. Child Labor Laws Connecticut restricts the work hours of 16- and 17-year-olds. The rules are broken down by industry, school enrollment, and whether school is in session. In general, youth enrolled in school can only work under these guidelines when school is in session: Between the hours of 6 a.m.–10 p.m. (11 p.m. for some industries on non-school nights) A maximum of six hours per day (eight hours Friday, Saturday, Sunday) A maximum of 32 hours per week When school is not in session, they can work: No more than eight hours a day No more than six days in a week For youth who are not enrolled in school, they can work a maximum of six days in a week and 48 total hours. Federal child labor laws restrict 14- and 15-year-olds from working more than 18 hours per week (three hours per day) when they’re in school and no more than 40 hours per week (eight hours per day) when school is out. In addition, they can only work between 7 a.m. and 7 p.m. No minor is allowed to perform hazardous work such as mining. For exceptions and more detail regarding your industry, please visit the Employment of Minors section on the Connecticut Department of Labor’s website. Payroll Forms Listed below are some federal and state forms needed to produce accurate pay for employees and compliant payroll reporting and tax remittance for businesses. Connecticut Payroll Forms Connecticut W-4 Form (CT-W4): To help employers on calculating tax withholding for employees Connecticut Quarterly Reconciliation of Withholding (CT-941): for quarterly tax filing Connecticut W-3 form (CT-W3): for annual reconciliation of withholding Federal Payroll Forms W-4 Form: Assists employers calculate withholding tax for employees W-2 Form: Reports total yearly wages earned (one per employee) W-3 Form: Reports total yearly wages and taxes for all employees Form 940: Calculates and reports unemployment taxes due to the IRS Form 941: Files quarterly income and FICA tax withholding Form 944: Reports annual income and FICA tax withholding 1099 Forms: Provides contractors with pay information and amounts that assist them in tax calculation Connecticut Payroll Tax Resources & Sources myconneCT: Register, submit and file forms, and make payments, beginning in September 2021. Connecticut Workers’ Compensation Commission: Find information pertaining to workers’ compensation requirements. It is also a place to refer employees for a step-by-step guide on what they need to do if they suffer an on-the-job injury. Connecticut New Hire Reporting: Complete new hire reporting and view FAQs relating to new hire compliance. Connecticut Department of Labor: Obtain information relating to the calculation of unemployment taxes, as well as other laws and regulations relating to the welfare and protection of employees. Connecticut Department of Revenue Services: Information on withholding tax, registering your business, forms, and more. To learn more about payroll laws, check out our payroll compliance guide. Bottom Line Connecticut payroll differs from other states by the way it structures state income taxes, minimum wage, workers’ compensation requirements, timing on when employees should be paid, and child labor rules. Be sure to follow deadlines by federal and state governments.

Delaware is a typical state when it comes to processing payroll. It follows federal guidelines with a few exceptions. Some of the main exceptions are: Delaware has a progressive state income tax with seven income tax brackets based on each individual employee’s income; this impacts how much money you need to withhold from their paychecks. It has one city that also has a local income tax—Wilmington. Delaware has different withholding tax reporting deadlines based on the withholding tax amount of the employer. Delaware has stricter laws than the federal government when it comes to how often employees should be paid, workers’ compensation requirements, and youth employment. If you need help running your Delaware payroll, consider using payroll software like . It files and pays your payroll taxes and covers any penalties you are charged if its reps make a mistake (it’ll cover your mistakes too if you opt for a premium plan). You can pay employees via direct deposit or check, and same-day payment options are available as well. Sign up for a free trial or discounted rate. Running Payroll in Delaware—Step-by-Step Instructions Step 1: Set up your business as an employer. At the federal level, you need your Employer Identification Number (EIN) and an account in the Electronic Federal Tax Payment System (EFTPS). Step 2: Register with the State of Delaware. Delaware has a one-stop-shop website for business licensing and registration. The website allows you to register a new business or location, open or close business licenses, report hiring, register a tax withholding account, view your accounts, and more. If you need assistance on registering, please see the State of Delaware's guide on opening a business. Step 3. Set up your payroll process. You will need to set up payroll, set a pay schedule, decide on how to pay employees, and how you will process taxes and deductions. Step 4: Collect employee payroll forms. The best time to collect payroll forms is during the new hire process. Payroll forms include W-4, I-9, and direct deposit information. Delaware requires you to submit form DE-W4 as well. Step 5: Collect, review, and approve time sheets. If you employ hourly or nonexempt employees, you’ll need to track their work time. You have three options that you can use. A paper time sheet (Use one of our free time sheet templates) Free or low-cost time and attendance software A payroll service that has a time and attendance system Step 6: Calculate payroll and pay employees plus taxes. You can process payroll yourself, use an Excel payroll template to help with calculations, or select a payroll service. Each option comes with benefits and drawbacks. Normally, you have the option to pay employees in a number of ways including by cash, check, direct deposit, or pay cards. Federal taxes should be paid through the EFTPS. Step 7. Document and store your payroll records. Federal law requires you to keep payroll records for all employees for at least three years or payroll tax records for four years, including those who are no longer with your company. If you need help with which records to keep, please see our article on retaining payroll records. Delaware requires employers that have more than three workers to maintain records relating to hours and wages for at least three years. In addition, upon hiring you must let each employee know in writing about their pay rate, pay date, and the location of payment. Step 8: File payroll taxes with the federal and state governments. The IRS has forms and instructions on filing federal taxes, including unemployment. You can also order official tax forms from the IRS. For state taxes in Delaware, you remit your taxes on the following schedules: Eighth-monthly (eight times in a month), monthly, or quarterly. Your withholding schedule is based on your average withholding amount over the previous year’s lookback period. For 2022, this period is from July 1, 2020, to June 30, 2021. New employers should remit quarterly until their lookback period has been established. Step 9. Do year-end payroll tax reports. The federal forms that are required are W-2s (for employees) and 1099s (for contractors). These forms should be given to employees and contractors by Jan. 31 of the following year. State W-2s are also required for Delaware and these forms are due by Jan. 31 as well. Download our how to do payroll in Delaware checklist to make sure you don’t miss a single step. Delaware Payroll Laws, Taxes & Regulations Delaware has a few payroll rules that differ from federal regulations. It has a progressive state income tax. One city, Wilmington, has a local tax which is a flat tax. The state also has requirements relating to unemployment insurance, workers’ compensation, minimum pay frequency, and final paycheck laws. Federal law requires you to pay income taxes, Social Security, Medicare, and Federal Unemployment Tax Act (FUTA) taxes. Called FICA taxes, Social Security and Medicare are withheld from each employee’s paycheck: Social Security at 6.2% and Medicare at 1.45%. In addition, you must pay a matching employer’s amount out of your bank account. FUTA is an employer-only tax that is 6% on the first $7,000 paid to each employee in that year. Delaware Taxes Like most states, Delaware has certain taxes that companies must pay or withhold, including local income taxes for residents of Wilmington. State Income Taxes Delaware has a progressive income tax that taxes an employee’s income at a higher rate as their income goes up, which is similar to the federal income tax guidelines but with a couple of differences. At $60,000, Delaware has a much smaller income cap than the federal cap of $518,401; it has the same brackets for each filing status. Local Income Taxes The most populous city in Delaware, Wilmington, has a local income tax. It is a flat rate of 1.25% for both residents and nonresidents. It is the only location in Delaware that has a local income tax. State Unemployment Tax Delaware’s state unemployment tax (SUTA) rate is 1.8% for new employers. For established employers, the rate is based on your taxable payroll, how many of your former employees applied for unemployment benefits and the state unemployment fund balance. In 2022, the rate can be anywhere between 0.3% and 8.2%. The percentages for both new and experienced employers are on the first $16,500 of taxable income per employee. Workers’ Compensation You are required to provide workers’ compensation in Delaware unless you work in agriculture. Delaware is also a no-fault state, so workers’ compensation claims can be covered regardless of the cause of the workplace injury. The cost of workers’ compensation insurance is around $1.29 for each $100 payroll you processed. For example, a company that processes $500,000 of payroll can expect to pay around $6,450 in insurance. Minimum Wage and Tips Most jobs will require you to pay at least minimum wage. Delaware’s current minimum wage is $10.50 per hour. For non-tipped employees, employers may pay a cash wage of $2.23 per hour, provided that their tips ensure that the employee’s take-home pay is at least the minimum wage, which at the time of this writing is $10.50 per hour. There are some exceptions to the minimum wage rule. This includes employees who work in domestic service, agriculture, and the federal government, as well as actual executives and administrators. Youth workers also have a separate minimum wage rate of $8.75 per hour. Overtime Delaware does not have any separate laws regarding overtime and follows federal guidelines. You’ll need to pay 1.5 times the regular hourly rate for any hours your employees work over 40 in a workweek. Different Ways to Pay Employees In Delaware, you are able to give employees a few payment options. These options include check, cash, pay cards, or direct deposit. You are required to provide employees the option of being paid by check or by cash. You can pay via direct deposit if the employee provides written consent. Please see our guide on how to pay employees for more in-depth information on how to legally implement each of these payment methods. How Often You Must Pay Employees To comply with Delaware rules, you must pay employees at least monthly and no more than seven days from the close of each pay period. Federal law requires you to maintain consistency with whichever period you choose. You should also communicate your pay frequency to employees upon hire and notify them whenever changes arise. Pay Stub Laws You must provide a statement of your employee’s earnings, withholdings, and hours worked in Delaware. This statement can be written or electronic, as long as the employee is able to save it for their own records. If the record is provided online, the employee must be able to receive a written statement upon request. Paycheck Deduction Rules Delaware does not allow you to deduct the following and similar items from an employee’s check: Shortage of cash Lost or damaged possessions of the company Equipment, supplies, or uniforms Bad checks However, you are able to deduct these common items from an employee’s check: Taxes Garnishments and levies Benefits Reimbursements Final Paycheck Laws Delaware requires you to pay all final wages by the next scheduled payday regardless of whether the employee voluntarily left their position or was fired. We recommend paying as soon as possible to ensure you don’t face any litigation. Delaware HR Laws That Affect Payroll Delaware does not have many state specific HR laws that you have to be aware of. You don’t have to provide employees with any leave, with the exception of family leave. It also does not require employers to purchase disability insurance. However, it requires breaks and has stricter rules than the federal government concerning employment of minors. Delaware New Hire Reporting Delaware requires that you report new hires within 20 days of the hire date. This includes rehires and return-to-work employees. You can report new hires online on the Delaware New Hire reporting website or by mail to the Delaware State Directory of New Hires, P.O. Box 90370, Atlanta, GA 30364. If you decide to report electronically, you must submit the reports at least semimonthly. Breaks, Lunches & Time-Off Requirements Delaware only requires daily breaks and family leave. Breaks and Lunches: Delaware’s law requires that you give a 30-minute break to employees who work at least seven and a half hours consecutively. This break must be given after the first two hours and before the last two hours of an employee shift. For example, an employee working from 9 a.m. - 5 p.m., must have a break between 11 a.m. and 3 p.m. Vacation, Sick, and Holiday Leave: Delaware does not have any requirements on vacation, sick, or holiday leave for private employers but if you do provide unpaid or paid leave, you must abide by the policy you set. Public employees are entitled to state holidays. Family Leave: Employers are mandated to follow federal law in the Family and Medical Leave Act (FMLA). The law, which allows for 12 weeks of unpaid time off, is for employers that have more than 50 employees for 20 or more weeks in the current or previous year. Employees can take FMLA leave if they have worked at the company for at least a year, with 1,250 hours worked in the previous year, and if their physical work location has 50 or more employees in a 75-mile radius. To learn more about the Family and Medical Leave Act, visit the Department of Labor’s guide to FMLA. Jury Duty: You are required to provide employees with time off if they’re summoned to jury duty. If they’re hourly workers, you don’t have to pay them; however, you must keep their jobs open and aren’t allowed to threaten or coerce them into not participating. Consequence can be a lawsuit for lost wages and a fine of up to $500. Voting Leave: You’re not required to provide employees with time off to vote. They can use their vacation or other PTO if available. Bereavement Leave: You’re not required to provide bereavement leave unless you have a policy that outright states you will provide it. And in that case, you’d need to follow it accordingly. Delaware has a separate state policy to allow 12 weeks of paid leave for state employees who have worked for a year before the birth or adoption of a child younger than six. This 12 weeks of paid leave runs concurrent to the 12 weeks of unpaid leave mandated by federal law. State Disability Insurance There is no state disability program in Delaware, and the state does not mandate companies to purchase disability insurance. However, it is a good idea to have, both for yourself and your employees. Child Labor Laws In Delaware, you are required to have and keep a work permit for all employed minors under 18. Depending on the youth’s age, Delaware also restricts work hours. The restrictions are the following: Minors who are 14- and 15 years old: From Labor Day to June 1, minors can work between the hours of 7 a.m. and 7 p.m. During the summer (from June 1 to Labor Day), minors can work between the hours of 7 a.m. and 9 p.m. Cannot work more than four hours on school days and more than eight hours on non-school days Cannot work more than 18 hours in a week when school is in session for the full week and cannot work more than 40 hours when school is out of session Cannot work more than six days in a week Are required to have a 30-minute break if they work more than five hours straight Cannot work in a profession that is not described in the Delaware’s Child Labor Law Booklet; some of these professions include grocery store shelver, tutor, and office clerk Minors who are 16- and 17 years old: Cannot work more than 12 combined hours of school and work in a day Must have eight straight hours in a day that is not at work or school Cannot work in a profession that is described as a prohibited job in the Child Labor Law Booklet; some of these jobs include using power tools, mining, and forest fire fighting Required to have a 30-minute break if they work more than five hours straight Payroll Forms Listed below are some of the federal and state forms needed to produce accurate pay for employees and compliant payroll reporting and tax remittance for business. Delaware Payroll Forms Delaware W-4 Form: To help employers on calculating tax withholding for employees Federal Payroll Forms W-4 Form: Help employers calculate withholding tax for employees W-2 Form: Reports total yearly wages earned (one per employee) W-3 Form: Reports total yearly wages and taxes for all employees Form 940: Reports and calculates unemployment taxes due to the IRS Form 941: Report and files quarterly income and FICA tax withholding Form 944: Report and files annual income and FICA tax withholding 1099 Forms: Provides contractors with pay information and amounts that assist them in tax calculation Delaware Payroll Tax Resources & Sources Delaware One Stop Shop: One consolidated location to find everything you need regarding starting a business, registration, and licensing in the state of Delaware. Delaware Department of Revenue: File and pay withholding and corporate taxes. Delaware Department of Labor: Find information pertaining to Delaware's workers' compensation law as well as a FAQ section allowing employers to connect with qualified potential employees. Delaware New Hire Reporting: Complete new hire reporting, access forms and view FAQs. To learn more about payroll laws, please see our payroll compliance guide. Bottom Line Delaware differs from other states by the way it structures state income taxes, its higher minimum wage, workers’ compensation requirements, and its youth employment rules. Be sure to follow deadlines by federal and state governments.

A pay stub is a document that serves as a record of an employee’s paid wages in addition to taxes and deductions withheld. This article provides a variety of free pay stub templates to help you comply with laws in the 41 states that require employers to provide them—even if paying with cash or direct deposit. As your small business grows and you want to spend less time creating manual pay stubs altogether, consider using a payroll service like . In addition to offering pay stubs, it allows your employees to manage their account information online or via a mobile device and print their payroll documents. Sign up for a 30-day free trial. General & Industry-specific Pay Stub Templates Here is a general downloadable free pay stub template in which you can input your data and then save or print. It contains all of the basic information fields you may want to document earnings and deductions. Any words or rows you don’t use can be left blank, customized, or deleted from the template to make this work for your business. You may want to customize your stubs based on the industry in which your business operates. For instance, restaurants may need a method for tracking and reporting tips, while household employers may need space to report expense reimbursements. Payroll software usually provides you with the most flexibility since its pay stubs are formatted to work with businesses in most industries. The caveat is that you have to use the system to process payroll before a stub can be generated. Here are two downloadable pay stub templates you can use for the restaurant and household employment industries: What a Pay Stub Template Should Include State law typically dictates the information you should include on a pay stub, although generally it will include basic employer and employee information, pay period and rate, gross earnings, taxes, and net pay, among other data. However, some states—like Arkansas and South Dakota—don’t require employers to provide pay stubs to employees at all. Regardless, providing a pay stub is a good practice because it ensures you have solid backup information in the event of an audit. State Pay Stub Requirements There are currently 41 states that require employers to provide pay stubs to their employees. Some of those also mandate in what form employees must receive them. Colorado, for example, requires that all pay stubs are provided in a printed or written form. Other states, like Hawaii, allow employees to opt out of written/printed pay stubs to receive pay stubs electronically instead. Use the map below to determine if your state requires you to provide pay stubs to your employees and in what form: Pay Stub Retention The United States Department of Labor (DOL) has no mandatory retention requirements for specific documents like pay stubs, but it does require that payroll information be retained for three years. Meanwhile, the IRS requires that tax documentation is retained for four years. Some states, like California, require employers to retain payroll documentation for six years. Our state payroll guides break down everything you need to know about pay stubs—from whether or not they’re required to what they need to include and how long you’re required to keep them on file. For all the details you may need, check out our state payroll directory. What Each Field on a Pay Stub Means Many pay stub templates include useful information such as the number of hours worked during the pay period, year-to-date balances, and paid time off taken. They may also include specific descriptions on the purpose of pre-and post-tax payroll deductions, such as for medical insurance, life insurance, commuter benefits, or uniform fees. When reviewing free pay stub templates for your business, check that there’s space for basic earnings and deductions information, such as: Pay period: Depending on the state requirements, this can be the start and end dates, or the pay period end date only. Hours worked: Not all states require the hours to be listed on the pay stub, but it’s a best practice because you have to track the information to ensure overtime is paid correctly. For example, 40 hours regular plus six hours overtime equals 46 hours total in a pay period. Gross earnings: Gross pay includes hourly earnings, commission earnings, tips, and any earnings based on piecework—each type of earning is typically shown as a separate line item on the pay stub. Required taxes: Include a line each to show federal taxes, state taxes, unemployment taxes, and local taxes (if any), as well as Social Security taxes deducted from employee earnings. Taxable deductions: Include a separate line item for any taxable deductions such as wage garnishments or uniform fees. Tax-free deductions: Include a separate line item for any pretax benefits or retirement plan contributions such as health insurance, life insurance, FSA, HSA, or 401(k) contributions. Time off balances: This information is helpful to the employee and is also required in states like California and New York, which have mandatory paid sick time laws. Online Pay Stub Generators In addition to free pay stub templates, there are web-based pay stub generators that allow you to input your pay stub information manually. Here are three online pay stub generators you may find helpful: : This site provides 10 pay stub templates and provides a tool to let you fill the blanks online. You have to pay about $9 for each pay stub you create. In addition to pay stubs, you can build and print W-2s and 1099-NEC documents. : This free tool on Shopify allows you to input your payroll data manually, and it generates a pay stub for you. It then requests your email address and sends the completed pay stub to you to download or print. : This free tool allows you to input payroll data and generates a pay stub for you in DOC or PDF format. You can sign up for a subscription that starts at $39.95 per month, and it offers a free seven-day trial. Other Downloadable Payroll Templates Check out some of our other articles with free downloadable payroll templates. Free Payroll Templates Employee Expense Report Template Tip Pooling Template Time Sheet Templates Pay Period Calendar Templates Bottom Line When you first start your business, you may pay workers with handwritten checks or cash. If you’re not using a payroll service, it’s important to document all payments and any taxes and deductions withheld. Pay stubs are a great way to meet the DOL’s payroll document retention requirements, even if they aren’t required. If your state requires you to provide pay stubs to your employees, consider using a payroll service. is a small business payroll software that calculates and files payroll taxes—federal, state, and local—pays employees through direct deposit or printed checks, and lets employees print their own payroll reports and pay stubs.

Millennials (born between 1981 and 1996) are sometimes criticized as a lazy generation, but it may be that they’re simply recognizing how outdated methods of working don’t work anymore. As the largest share of the workforce today, it's important for business leaders to pay close attention to what millennials want and need to be successful. And, what they're increasingly discovering is that flexibility, creativity, and collaboration are key to keeping this generation satisfied and engaged. Below, we outline some statistics on millennials in the workforce. 1. Millennials are the largest generation in the workforce (Pew Research Center) In 2017, millennials overtook Gen X-ers (born between 1965 and 1980) as the largest generation in the US workforce, with 56 million (about 35%) either working or looking for work. It was estimated that in 2020 millennials also made up 35% of the global workforce. 2. About 75% of millennial women are employed (BLS) The Silent Generation (born between 1928 to 1945) saw women in the workforce at a rate of about 40%, with 58% actively not engaged in the workforce. For boomers (1946 to 1964), women’s employment increased to 66%, paving the way for millennial women to be employed at much higher rates. This still isn’t as high as millennial men, however, who are employed at about 80%. 3. 55% of millennials are disengaged at work (Gallup) Millennials are the least engaged segment of today’s workforce. Over half of millennial workers are disengaged, leading to lower productivity and higher turnover. 4. 23% of millennials say they hope or plan to change jobs in six months (LinkedIn) Millennials change jobs faster than any working generation, except Gen Z. According to LinkedIn, nearly a quarter of working millennials say they are changing jobs or plan to change jobs in the next six months. Another report, from Deloitte, found that nearly a quarter of millennials see themselves leaving their current job within two years. Shockingly, 32% said they’d leave their current job without another one lined up. 5. Cost of living is the biggest concern for millennials (Deloitte) Forty-three percent of millennials cited their long-term financial future as a primary driver of work-related stress. They fear not being able to afford housing, food, and other basic needs—in fact, 47% of those surveyed live paycheck to paycheck. 6. Pay is the No. 1 reason millennials leave jobs (Deloitte) As a result of that financial anxiety mentioned above, pay is the number one reason millennials left their jobs within the last two years. However, when choosing jobs, good work-life balance (39%) and growth opportunities (29%) are their top priorities. 7. 73% of millennials work over 40 hours per week (ManpowerGroup) So, millennials are lazy and entitled? Data from ManpowerGroup tells a different story. Its survey found that nearly three-fourths of millennials work over 40 hours per week and almost 25% work over 50 hours per week. 8. Only 24% of millennials are satisfied with career progress (Deloitte) Despite millennials working just as much, if not more, than other generations, less than a quarter of them are satisfied with their career path. This shows a significant dissatisfaction with traditional career paths in corporate settings. 9. 80% of millennials think it’s OK to quit a new job if it’s not what they expected (The Muse) Millennials expect the employer-employee relationship to be a two-way street. If a worker gets into a new position that’s not what was promised, 80% of millennials agree that it’s acceptable to leave a new job in the first six months. The Muse calls this “shift shock,” and 41% of millennials would give a new job two to six months to get better before leaving. 10. Millennials are the job-hopping generation (Gallup) Gallup polling found that more than 20% of millennials had changed jobs within the past year (a much higher percentage than non-millennials), earning them the job-hopping generation nickname. They’re not just job hopping for more money. They’re also doing it for better flexibility and to join an organization that does more meaningful work. 11. Millennials expect employers to care about their well-being (Gallup) Millennials expect their employers to care about and for their well-being. That can be shown in many ways, from inclusive workplaces to flexible working arrangements. 12. 84% of millennials want to work remotely (Axios) While just over half of all workers said they would switch jobs for a remote or hybrid opportunity, 84% of millennials said they would. Remote work or hybrid options are crucial to attracting and retaining millennials in the workplace. 13. 75% of millennials working remotely are engaged (Gallup) If companies want to know how to engage millennial workers, give them the option to work remotely and train their managers to be effective. Remote work could be the biggest driver in millennial employee engagement. Along with that is having a strong manager who keeps them informed, communicates effectively, and doesn’t micromanage. 14. 61% of millennials have a side hustle (Zapier) Most millennials need a side hustle. With stagnant wages and ever-rising living costs, millennials are forced to explore other ways to earn money. 15. Millennials own approximately 5% of the country’s wealth (Federal Reserve) Millennials earn more money, adjusted for inflation, than boomers. That’s the end of the good news. At age 40, boomers owned about 21% of the country’s wealth, mostly through real estate. Today, partly because millennials can’t afford real estate at the same rates, millennials at age 40 only own about 5% of the country’s wealth. 16. Millennials hold over 30% of student loan debt (Education Data Initiative) Carrying an average balance of just under $40,000 of student loan debt, millennials hold over 30% of the total outstanding student loan debt in the US. As a result of this, combined with other economic factors, millennials are understandably concerned about their financial security and future. 17. 7% of companies offer student loan repayment assistance (EBRI) Company benefits are important to all workers and can help set a business apart from the competition. Student loan repayment assistance is a growing benefit offered by companies to help younger workers shoulder the massive costs of secondary education. With only 7% of companies currently offering this benefit, it’s a prime opportunity to give your organization a competitive advantage. 18. 42% of millennials cite mental health as a reason for time off (Deloitte) Multiple studies show that workers are increasingly aware of their mental health and the stress work places on them. But, millennials are more likely to disclose the actual reason for needing time off than older generations. Companies that don’t address these issues will lose out on workers. 19. 47% of millennials wish they’d chosen a different career (CNBC) Workers are seeking fulfillment in their jobs, and many aren’t getting it, wishing they’d chosen a different career path. However, companies can help these workers by implementing development programs to help workers shift their skills into something they prefer and are excited about. This is a win-win. 20. 61% of millennials moved into management to advance their careers (Zapier) For millennials, they found the only way to earn more money and advance their careers was to move into people management positions, even if that’s not really what they want to do. Creating growth plans for each position in a company can be a great way to incentivize employees to stick around while showing them exactly where they can go within your organization. Bottom Line Millennials have often been criticized for their perceived lack of commitment to the workplace and lack of work ethic compared to older generations. However, these criticisms may be unfounded, as recent statistics show that millennials are actually quite dedicated to their careers and will put in the effort to succeed. As business leaders, it is important to pay attention to the needs and preferences of this generation. Successfully working with millennials entails understanding what drives them and adapting your strategies accordingly. This will help them succeed in the workplace and ensure the continued success of your company.

TriNet is a leading professional employer organization (PEO) that offers hire-to-retire HR support, payroll, and industry-specific compliance support. Its strategic HR offerings are top-notch—but its offerings may be more than you need, especially since it’s more expensive than many PEO services. In such an instance, you may benefit more from choosing a reputable TriNet competitor instead. We evaluated several TriNet alternatives for their price, ease of use, and features to help you select the best one for your needs. Here are the top five: : Best TriNet competitor for small to midsize companies (especially those in tech) needing hardware and software onboarding : Best TriNet competitor for solopreneurs and very small businesses that want to grow into a PEO option : Best TriNet competitor for companies with contractors (alongside employees) : Best TriNet competitor for growing or large businesses : Best TriNet alternative for multinational businesses Best TriNet Competitors Compared All the PEOs on our list offer the standard benefits of medical, dental, 401(k), commuter, and HSA/FSA. They also handle onboarding, document management, and some risk and compliance support. We list the noteworthy additions. *Prices based on quotes we received; please call providers for custom quotes. **Currently on beta test via its upcoming global EOR offer—targeted to be widely available by January 2023 ***EoR=Employer of Record; learn more about what they do in our article. ****Based on analysis by enlyft.com. Rippling: Best TriNet Alternative for Companies With Heavy IT Needs is a top HR and payroll software solution that focuses on making tech easier. It does this with its intuitive interface, amazing number of integrations, and ability to onboard employees with hardware as well as software. It offers a PEO solution that not only lets you take advantage of those tools but is itself easy to turn off and on. As such, we think it’s the best TriNet competitor for high-tech companies or those that need a lot of software to run their business. Rippling can be found in our following best-of lists: Best PEO Companies Best Paychex Competitors Best ADP Competitors Best International Payroll Software Best Online Payroll Software Best HR Software Best HR Payroll Software Best HRIS Software Rippling Pricing Rippling offers custom quotes, which are flat-rate and per-employee but vary by organization size, features, types of insurance you want, and more. Therefore, you must call for a customized quote. However, its tools are grouped into modules with their own prices. Even the PEO platform is fully a la carte, so you can add or subtract features as needed. The PEO option itself can be added or removed monthly. We received a quote of $35 + $8 per employee monthly for time tracking and payroll. Pricing for other modules runs from $5 to $100 per month. Here are a few examples. You may get a discount for multiple modules. Employee benefits: $6 per employee monthly Flex HSA/FSA and commuter benefits: $6 per employee monthly HR help desk: $100 per month App management: $8 per employee monthly Device management: $8 per employee monthly Rippling Features IT onboarding: Rippling is unique to all the PEO services we looked at because, in addition to the standard onboarding for payroll, benefits, and the like, it can onboard your new employee’s computer as well. With the software module, it can automatically add new employees to the apps they need, and with the device management module, it will take responsibility for hardware from issuing to decommissioning. It’s great for those that want to outsource IT as well as HR. Integrations: Here, too, Rippling takes the lead as the best TriNet competitor for companies that use a lot of software. It can integrate with over 500 different apps—more than any other PEO on our list—and its interface is designed for employees to easily access programs on their Rippling dashboard. This, too, is unique among those on our list. Payroll: Rippling says you can complete payroll in as little as 90 seconds because it syncs all aspects of payroll automatically, from hours worked to automatic withholdings. Others on our list don’t make this claim, but several (including TriNet) do sync hours, PTO, and expenses. Like Justworks, you can pay by checks or direct deposit. If you want pay cards, consider ADP or Paychex. International payroll: Starting Jan.1, 2023, Rippling is offering native global payroll. This allows you to run payroll for employees in any of the 50 countries it caters to. Employees will be paid in their local currency. Just like with US-based payroll, it’s compliant with local laws, has internal error-checking, and, in many cases, can be done in 90 seconds. HR support: Rippling claims quick onboarding of employees, generating the offer letter and handbook, running background checks, adding them to payroll and benefits, assigning them to training, and setting up their apps. TriNet and others offer onboarding tools, including e-signature of documents, but Rippling alone has software and hardware onboarding. Learning management: Rippling offers an excellent learning management system. You can select any of its 1,000+ ready-made online courses or upload your own. Courses are easy to access on tablets, can include built-in quizzes, and generate certificates for compliance. TriNet, by comparison, offers about half as many courses. Compliance: While TriNet has compliance support, Rippling provides compliance enforcement. Rippling has automated enrollment in state-mandated training so you can make sure your employees stay compliant year after year. You can even deny employees clock-in until they complete a mandatory course (such as for safety). Ease of use: Real-world users praise Rippling for its ease of use and intuitive interface. They give it 4.77 out of 5 stars, averaged across multiple user reviews—the highest user score on our list (Justworks was second with 4.63 out of 5). Compare this to TriNet’s score of 3.84 out of 5. Read our Rippling review to learn more. Paychex: Best TriNet Competitor for Small Businesses Wanting a Future PEO Option TriNet is best suited for medium and large companies—so if you are a small company or even a solopreneur, consider an alternative like . While PEOs require fived or more employees, Paychex can nonetheless take you on for payroll and other HR tools until you reach that level. It’s one of the most customizable services on our list, providing basic plans and additional options (for additional prices). You can find Paychex on several of our best-of lists: Best PEO Companies Best Payroll Apps Best HR Apps Best Payroll Software Best HRIS Systems Paychex Pricing Like many on our list, Paychex requires a custom quote. For a company of 20, we received a tentative quote of $100 per employee for the administrative fee. This includes payroll, 401(k), administration of health benefits, access to ancillary benefits like dental coverage, workers’ compensation, and a designated payroll expert and HR expert whom you can access daily if needed. Our rep also told us that most often, it will pay for itself in the savings they find in programs like 401(k) and medical insurance. Unlike TriNet, Rippling, Justworks, and Papaya, it does not allow unlimited payroll, and charges more for weekly pay runs. Paychex Features Payroll: Like ADP, you can get check-stuffing services or pay by pay card (TriNet has pay cards, but not check-stuffing). It offers automatic pay runs and customizable earning/deduction types, something most on our list do. Paychex handles payroll tax payments and filings but may charge extra for year-end tax reporting. Business tools: In addition to incorporation services, Paychex offers a wide range of business insurances, including workers' compensation, liability, umbrella, cyber liability, and commercial property insurance. TriNet offers a few of these, like liability and workers’ comp, while ADP offers nearly as many as Paychex. Strong HR tools: You get over 60 HR reports and access to HR and payroll professionals. You get a dedicated payroll rep with higher plans (such as when using them as a PEO). The HR consultants can alert you of changes in local, state, or federal labor laws. It has a full range of HR tools, and like Rippling, you can add them as needed. However, unlike Rippling, they are not grouped into packages. User reviews: With a user score of 4.06 out of 5 stars on several review sites, Paychex is middle-of-the-road for those on our list but much higher than TriNet, which earned 3.84 out of 5 from real-world customers. We have seen a trend toward increasing satisfaction, especially among employees. Serves solopreneurs: Sometimes, even a business of one can benefit from outsourcing its payroll and benefits. While you don’t need a PEO for this, Paychex is the only service on our list that offers a Solo Plan with self-employed payroll and tax services, incorporation services, and even a 401(k) for retirement planning. It can take a lot of the heavy work off your hands. Read our Paychex Flex review for more details about the interface and basic services. Justworks PEO: Best TriNet Competitor for Contractor Pay is a great alternative to TriNet for two reasons: Its pricing is transparent and, in most cases, cheaper than TriNet’s, and it includes contractor payroll in its plans. TriNet charges extra for this function. It falls short of several on our list, like Rippling, because it does not offer international payroll, and is the only one that does not have hiring tools (it does have onboarding, however). Nonetheless, it's otherwise excellent toolset and high user approval landed it top slots in several of our best-of lists: Best PEO Companies Best Online Payroll Services Best Zenefits Competitors Justworks PEO Pricing Justworks offers two plans—Basic and Plus. Pricing depends not only on the plan but the number of employees you have. The pricing is the same whether you pay monthly or annually. Unlike others on our list, Justworks does not charge extra for contractor payroll or tax filing. Basic Plan: Payroll including unlimited payments, tax filings, employee onboarding, PTO management, basic training, workers’ comp, life and disability insurance, 401(k), health and wellness perks, HR consulting 1–49 employees: $59/employee/month $10 discount per employee after the 49th Plus Plan: Everything in Basic Plan, plus employee benefit plans for Health Advocacy Services, COBRA administration, medical insurance, FSA/HSA, dental and vision insurance (benefits are pay-by-employee) 1–49 employees: $99/employee/month $10 discount per employee after the 49th Justworks PEO Features Payroll processing: Like TriNet and its other competitors, Justworks pays employees by direct deposit or paper checks. However, you need to distribute paper checks yourself (ADP, by contrast, charges you but will send them individually). Justworks only pays hourly and nonexempt salaried employees on a biweekly or weekly basis, with pay periods running from Sunday to Saturday—others on our list have similar schedules. If you need custom pay periods, consider Rippling. Salaried-exempt employees are paid on the first and 15th, although you have the option to move them to a biweekly schedule. It offers options for off-cycle payments and prorating paychecks. Time tracking and timecards: Justworks has a time tracker, Justworks Hours, which is a mobile app. However, it costs an extra $5 per user per month. TriNet and others on our list don’t charge for mobile apps, but they do not have time clocks. You can always integrate other timers, like QuickBooks Time, into your timecards. Timecards can also be filled in manually by employees and sent to managers for approval. Paychex also has a time tracker; it, too, may cost extra, depending on your plan. Compliance: Compliances are a big reason for hiring a PEO. Justworks, like the others on our list, helps you stay compliant by offering workers’ compensation, keeping track of changes in federal and state regulations, and handling new hire reporting. However, it stands apart in that it provides, free of charge, basic required training like sexual harassment prevention training. Most offer similar training but as part of their talent management tools, which cost extra. Benefits: Like TriNet and all the alternatives on our list, Justworks offers medical, dental, vision, HSA, FSA, accidental death and disability, and life insurance. Justworks manages its own 401(k) program, while most of the others outsource. However, if you already have your benefits providers and are not interested in changing, then Rippling might be a better choice, as it integrates with just about anyone. HR features: Justworks' HR features take an employee from hire to retire with tools like document onboarding and training, electronic signatures, and employee access to important documents. Overall, the features are more basic than others on our list, although most of the others consider these additional tools (like talent management or performance management) as add-ons and charge more for them. User response: Real-world users on multiple review sites rate Justworks 4.63 out of 5. They praise the easy user interface and strong customer support. Only Rippling has a higher user score with 4.77 out of 5. TriNet, by contrast, earned a 3.84 out of 5. Read our Justworks PEO review for more details. ADP TotalSource PEO: Best for Growing or Large Businesses is an excellent alternative to TriNet, especially if you are a large business or a business that anticipates scaling up. Like TriNet, it works with small and medium businesses but it’s well suited for larger ones—as well as international businesses. It also carries your employees from hire to retire, offers strategic and industry-specific HR features, and provides custom pricing. You’ll find ADP on many of our best-of lists, and not just for PEOs. Its payroll service, ADP Run, is also an excellent product. This is just another way it can grow with you. Here are some categories where ADP ranks high: Best PEO Services Best Paychex Competitors Best International PEO Best Paylocity Competitors Best Online Payroll Services (ADP Run) Best HR Software (ADP Run) Best HRIS Software (ADP Run) ADP TotalSource PEO Pricing Like with TriNet, you need to call ADP for a custom quote (this is typical of most PEO companies; only Papaya and Justworks on our list offer fully transparent pricing). Also like TriNet, your quote will vary by your geographic location and the features you choose. A representative told us prices start at $85 per employee monthly, which is significantly cheaper than TriNet, but you’ll want to compare features, as, like Paychex, it will charge more for add-ons. Justworks and Rippling are cheaper but may not have as many tools included. ADP TotalSource PEO Features Flexibility: First, ADP serves businesses of all sizes, from a handful of employees to companies of over 1,000. TriNet, by contrast, works best for medium and larger businesses. Second, it offers non-PEO services, so if needed, you can downgrade or upgrade. If a PEO is more than you need, you can outsource your HR services to ADP, or you can select only ADP Run for payroll (Rippling and Paychex also offer this flexibility). Finally, you can select the tools you need, paying only for them. While this is typical of most PEOs (Justworks and Papaya being exceptions), it makes it easier for ADP to grow as your needs do. Payroll: While TriNet offers electronic payments, ADP can pay by checks, like Paychex. Plus ADP can pay employees by pay card—TriNet and Paychex do this as well. This is a popular option with millennials and Gen Z. ADP has audit and reconciliation services, something we did not see in other PEOs, although TriNet and others do have automations to ensure information is correct and compliant with local law. Strategic HR: ADP’s strategic HR services are similar to TriNet, in that they include advisers. With ADP, you get a strategic HR expert, a payroll adviser, a benefits team, and even workplace safety consultants. Your employees benefit from ADP MyLife advisers who can help them with questions about benefits and referrals. Compare this to Rippling, whose HR experts may cost you extra. Industry-specific HR: ADP is experienced in a wide range of industries, and may have more experience in some than TriNet. One example is the restaurant business: ADP’s program includes time tracking, tip calculation and reporting, and more. TriNet does not promote anything specific for this industry on its website, although it can create a plan (for comparison, it and Paychex are on our best restaurant payroll software list). International HR: ADP generally serves international companies with over 50 employees total and with workers in at least three countries—compare this to Papaya, which is more flexible in size. Rippling handles international payroll, but only for contractors. TriNet can work internationally but this is not a focus. Excellent mobile app: ADP’s mobile app has the highest user scores of those on our list: 4.7 out of 5 on iOS (2.5 million ratings) and 4.5 out of 5 on Android (408,000 ratings). TriNet’s iOS app scored higher (4.8 with 23,800 ratings) but significantly lower on Android (3.2 with 1,000 ratings). Read our ADP TotalSource review for more details. Papaya Global: Best TriNet Alternative for Multinational Companies is our top pick for best international payroll service; it provides an intuitive platform, excellent local support, and contractor-only options. TriNet did not make the international PEO list, and ADP ranked below Papaya because it does not offer the same strength of features this international-only Employer of Record (EoR) provides. (We will be reevaluating Rippling in our next update, as it has improved its international EOR.) Unlike TriNet or Rippling, Papaya does not require you to be a US-based business. Plus, it has transparent pricing, something only Justworks on this list provides. Papaya is also on our best PEO companies list. Papaya Global Pricing Unlike TriNet, Papaya puts its pricing on its website. In the past, it has had a price range depending on the number of employees, but the most recent list does not have this. Rather, the prices are somewhat reduced—and it mentions contacting them about volume discounts. The Global EoR plan is its international PEO. Meanwhile, the Payroll and Contractor programs provide certain services but leave you with employer liabilities. All plans include Papaya’s platform, payroll and benefits, tax filing to the local level, HR support, annual reports, and integrations. EoR ($650/employee/month): In-country partners serve as the employer of record, taking responsibility for payroll, workforce management, benefits, and compliances, while you handle the day-to-day tasking of your employee. Payroll ($20/employee/month): The entire payroll process, integration with your HRIS and ERP, pays in local currency. Contractor and IC compliance ($25/employee/pay cycle): Lets you outsource work to contractors at home or abroad. Payroll Intelligence Suite ($250/month for the annual plan or $320 per month for the quarterly plan): Real-time business intelligence reporting, employer and payroll costs across locations, and more. Papaya Global Features Employer of Record: As an EOR, Papaya hires and pays employees on your behalf, handling the PEO responsibilities while you manage the day-to-day tasking. It provides enterprise-level benefits that comply with local laws. It can even help you offer equity. While used by major corporations like Toyota and Microsoft, it nonetheless works with small companies. ADP, meanwhile, requires 50 employees total, with workers in at least three countries. TriNet requires you to call to see if your company is a good fit. International payroll: Papaya’s Global EoR plan pays your employees, files taxes, and assumes responsibility for errors. Papaya works in 160+ countries (the last count we found for TriNet was 115+ and ADP, 140+, while Rippling only handles payroll for international contractors). Like others on our list that handle international payroll, it can work with contractors. If you need checks mailed, you’ll want to consider ADP, since Papaya does not provide this service. In-country HR support: Papaya stands out from the rest in that it provides the platform for managing your employees but subcontracts the HR support to local organizations it has vetted. Papaya says this lets them work with the most knowledgeable resources for local labor laws, compensation, and cultural issues affecting HR. However, ADP, it should be noted, has headquarters in over 140 countries. Immigration support: Papaya is the best for immigration, with the ability to arrange work permits for expats and short-term laborers as well as permits for a worker’s family. ADP may be able to advise you and offers multiple articles on the process. Reports and analysis: The dashboard makes it easy to see employment costs across your entire company or drill down to the individual basics. Papaya can also create customized reports. Thus, like TriNet, it’s a good alternative for job costing. Check out our Papaya Global review for more details on this provider. How We Chose the Top TriNet Competitors When looking for the top TriNet competitors, we naturally chose top-rated PEOs. In fact, as noted above, many are on our best-of lists. From there, we considered price, ease of use, and features like compliance, payroll, and HR support. We also looked at user reviews, selecting only those that were popularly and favorably reviewed. Then we narrowed our list to those that did something better than TriNet or filled a need that was not a TriNet focus point. Bottom Line TriNet is a popular and feature-rich PEO service but it may not be the best for you. Small businesses, businesses on a tight budget, or those based outside the US will want to consider other options. We’ve looked at many possibilities and narrowed them down to the five best TriNet competitors. Rippling, Papaya, and Justworks offer tools to meet very specific needs that TriNet doesn’t meet or doesn’t meet as well. Paychex is a top choice for small businesses. ADP, meanwhile, can grow with you as you expand in scope, size, or reach. All are excellent services, so the choice is yours.

How you manage an employee’s excessive tardiness can affect much more than just the employee in question. Allowing habitual lateness to continue without action may increase turnover and decrease business efficiency and morale. Some simple solutions to target tardiness in the workplace include implementing time tracking, keeping thorough attendance records, and communicating a clear policy to your employees. Your team should also be made to understand that frequent tardiness has consequences, and even innocent or infrequent hiccups can affect other employees and the business’s bottom line. This guide gives you the tools you need to manage and prevent employee tardiness. We’ve also provided a free warning letter template you can modify and use for employees who need to be disciplined for excessive tardiness. Best Practices for Preventing Excessive Tardiness With all the negative consequences of employee tardiness—for the employee in question, their colleagues, and your business—it’s vital that you properly manage and prevent this behavior. Here are some best practices to help, whether you have an in-person or remote work environment. Communicate Your Employee Tardiness Policy Your company should have an attendance policy setting forth the company hours and when employees should be ready to work. Within this policy will be a section on tardiness that covers what’s acceptable and what’s not. Communicating this policy to your team is key to alignment. When your employees know what’s expected of them, it’s easier to hold them accountable if there’s a pattern of poor behavior. Your employee tardiness policy should clearly describe: Your company’s working hours Which person to call if an employee is going to be late How to correctly track time An acceptable window of time for an employee to arrive at work or log in remotely Consequences for tardiness Need a Sample Attendance Policy? When communicating your policy, especially if it’s new, make it abundantly clear that tardiness disrupts everyone. One employee being late can snowball into other employees having to cover and forgoing their own work. Define the Consequences Clearly Include in your policy a brief discussion of consequences for employees who have repeated late arrivals. Before you can create that policy, however, determine exactly what those consequences are for your company. We recommend two core pieces to include: 1) progressive discipline and 2) a three-strikes rule. Progressive discipline is a manner of disciplining employees using graduated steps. A sample discipline progression for a tardy employee might look like this: First offense: The employee has a discussion with their manager and HR about their behavior and how it affects the rest of the company Second offense: Provide the employee a written warning and require they have a discussion with their manager about actionable steps to correct the pattern of tardiness Third offense: Suspension and possible termination It might seem harsh to terminate an employee just for being late a few times—and that’s why we suggest you include a three strikes rule and establish your own guidelines of what is appropriate in your business. In the sample above, if an employee progresses through these consequences once, they will face penalties but should not lose their job. It’s when they have progressed through these levels of discipline three times in a short period, say a rolling six-month period, that they would face termination. Have a Time Tracking System To keep accurate records of when employees come and go, you need to have a good and easy-to-use time tracking system. A robust time tracking system will give you detailed reporting. Running weekly, monthly, and quarterly reports on your employee’s tardiness will quickly highlight any problems that you need to address. With an electronic timekeeping system, your employees can punch in and out from their computers or phones. You can even restrict the app on their phone to only work within close proximity to your building. This ensures the accuracy of the punches and lets you know which employees might have patterns of tardiness. Keep Records With an electronic timekeeping system, records are automatically kept. These confidential records are visible to both you and the individual employee. Even if you’re not present every time the employee arrives, you still know if they’ve been tardy by looking at the system. Maintaining these records is crucial to instill proper discipline. When you need to have a tough conversation with an employee about tardiness, you have data to back your position up. Without the data, you may appear to have an opinion or perception that the employee is late without providing any facts. This may leave employees feeling attacked instead of supported. Take Action Immediately Everyone is late occasionally. Sometimes traffic is backed up, public transportation is late, or an alarm doesn’t go off. A few times per year, these things are bound to happen. But when it becomes a pattern it can grow into a much bigger and costlier problem. As a manager, it’s your job to say something and stop this behavior right away. How to Help Chronically Tardy Employees You can’t simply tell a worker there’s a problem without offering support to correct it. Not only is this the right thing to do, but it also helps keep your business compliant. Communicate & Keep It Private While other employees must know tardiness is not taken lightly, you don’t want to reprimand an employee in a public setting. Any HR discussion like this should occur in private and remain confidential. You want to make clear that a violation of your company policy is not appropriate. Make sure, however, that you don’t come off too harshly—your employee may be dealing with personal issues you don’t know about. It’s best to begin by simply asking questions from a place of genuine curiosity. Employees will be able to tell if you’re looking to help or for a reason to discipline them. If an employee has been late several days in a short period, just ask what’s going on. They may have personal issues that are overwhelming them or a medical issue that’s preventing them from arriving at work on time. While we recommend asking questions and being supportive, you want to be careful about violating any employment laws. As it relates to an employee’s recent tardiness, you can ask if there’s a situation that might be causing them to show up late and affecting their ability to do their job, but don’t ask them specifically if they have a medical condition that’s to blame. It’s best to ask open-ended questions and get the employee to talk rather than trying to pry. For reference, here are some questions you want to avoid: Are you pregnant? What medical issues do you have? Can I see your recent medical diagnosis? Are you taking prescriptions that make you drowsy? Consider Employee Burnout When people think of burnout, they usually think of entrepreneurs who work 24/7 and are obsessed with their businesses and never able to turn their brains off—but it’s so much more than that. It is a complex issue that stems from many problems, both personal and professional. Addressing the employee with the right approach may depend on what causes the tardiness. If it’s burnout, then discipline alone won’t help. That may just make the employee more disengaged and late more often. To effectively address tardiness with a burned-out employee, you need to support them and help them figure out the root cause of their burnout. Not that you should avoid punishment for patterns of tardiness—it just shouldn’t be the only thing you do to correct the behavior. Define the Corrective Actions Getting to the underlying issue is vital to creating an action plan for tardiness. Discussing the ways you can help your employee will make them feel supported and more likely to take corrective action seriously. Don’t just give the employee a list of expectations—have a discussion with them. If there is a personal problem the employee is having, work with them to find a solution. If there is a medical issue they’re experiencing, discuss flexible work options. Work with your employee to define the corrective actions, providing reasonable timelines and support. This might look like: This example provides your employee with clear communication about what’s expected of them and how they can improve their behavior. By setting out the consequences for failure to meet your expectations, you make it clear what may come next for the employee, leaving no surprises for anyone. Regardless of the outcome, document everything. If tardiness has been a problem with this employee, make sure that you document the specific dates and times the employee was late, as well as the corrective measures that you both agreed upon. Also, make sure you note a date to review their progress. Review the Employee’s Progress One month is a good time to review data with the employee. After whatever time frame you set, reconvene with your employee. If they have reduced the frequency of their tardiness, recognize their improved behavior. However, if the employee has not improved their behavior, it’s time to take the next step in your progressive discipline procedure. That may be a final warning or termination if this has been an ongoing pattern. If it’s the latter, make sure you have documented everything appropriately. Terminating an employee, especially one who may have a medical reason for showing up late, should be taken with great care and should involve a consultation with an employment attorney. Why Employee Tardiness Needs to Be Addressed Addressing employee tardiness may not be a pleasant conversation, but it’s one that’s required to prevent even the perception of abuse. Regular communication and check-ins are key to making sure that your employees understand the expectations. Conversations with late employees can also help you uncover any struggles your team may have in their personal life that are contributing to their tardiness. Team Morale May Falter Employees notice what other employees do. I once managed a team where every employee sat in a bullpen, so it was abundantly clear to everyone when an employee arrived late or left early. It was also clear, and even more harmful to team morale, if I didn’t address the issue immediately. And that’s one of the biggest concerns with employee tardiness—the perception by other employees of favoritism or an unenforced policy. Either way, team morale can falter when even just one employee has a pattern of tardiness that goes unaddressed by management. Consider this example—if an office of 22 employees opens at 9 a.m., and Amanda arrives consistently between 9:10 and 9:30, then other employees will notice and one of two situations will result. Other employees will start showing up late just like Amanda. Other employees will become frustrated that Amanda gets away with being late and not care as much about the work they do. In either situation, you have a problem on your hands that needs to be addressed. Ignoring this issue will not make it go away and may result in additional lost productivity and potentially higher turnover. Business Efficiency May Lower Related to team morale is a drop in productivity, as employees who are unhappy or disengaged are less productive. With employee engagement low and stress at an all-time high, worker productivity is already falling—unsurprisingly so. A dissatisfied, unhappy, and disengaged employee is more likely to grow bad habits, like showing up late. So, tardiness can reduce your company's efficiency and, ultimately, your bottom line, in two ways. First, when one employee consistently shows up late but you do nothing to correct the behavior, other employees become frustrated and their work may suffer. Second, those other employees have now become disengaged and may develop bad habits of their own, such as tardiness. May Be a Case of Discrimination Avoiding disciplining a tardy employee could rise to the level of employee discrimination. As I always tell managers: What you do for one, do for all. If you penalize some employees for being late and not others, it might violate anti-discrimination laws. Title VII of the Civil Rights Act of 1964 prohibits employers from discriminating against employees based on race, color, religion, sex, and national origin. Even if you do this unintentionally, it’s still against the law and could result in employee lawsuits and fines from the U.S. Department of Labor (DOL) and the Equal Employment Opportunity Commission (EEOC). Employee Tardiness & Remote Work While remote work provides many positive benefits to both employees and employers, there is an inherent lack of structure in some remote work arrangements. This can result in procrastination, oversleeping, working odd hours, and other issues that lead to tardiness despite having a shorter commute and prep time. Can you hold remote employees accountable for being late when they’re not coming into a physical location? Yes. Let’s go back a few years, before the COVID-19 pandemic, to illustrate this point: Here’s what this means for you: Just because you allow employees to work from home—regardless of the reason—it does not mean your company gives up its right to have set business hours and hold employees accountable to being at work during those hours. In other words, if attendance is still an essential function of an employee’s job, you may hold them accountable for being late. If their job function doesn’t require specific hours, you may consider adjusting your attendance requirements to instead focus more on worker output. So we know normally, even with a distributed workforce, you can still hold employees to attendance policies. What if an employee is working from home because of a health issue for themselves or a close family member? As long as the employee is not tardy because of a Family and Medical Leave Act (FMLA)-covered illness, you can consider the employee to have violated the attendance policy and discipline them according to your policy. If, however, an employee is tardy because of an FMLA-covered situation, you cannot penalize the employee. Bottom Line Addressing employee tardiness can be uncomfortable, but it doesn’t have to be challenging. Speaking with employees the moment their late arrivals become an issue can prevent other employees from disengaging and avert the company from developing a culture of inefficiency. Without a quick response to tardiness, you risk losing revenue and quality employees. Taking swift action keeps everyone happy, productive, and profitable.

Involuntary termination occurs when a company (as opposed to an employee) initiates the termination of an employment relationship. It is often the result of cost-cutting measures such as downsizing or poor work performance or inappropriate workplace behavior by the employee. Below we will dive deeper into the reasons your company might use involuntary termination and cover some of the legal considerations and other impacts associated with that decision. Reasons for Involuntary Termination Involuntary termination happens for many reasons, and the business usually determines these factors. Below are some of the most common motives for terminating employees. Impacts of Involuntary Termination When you terminate someone, that employee may be entitled to certain disclosures and benefits they would not be entitled to if they quit voluntarily. There are also things you need to prepare for to keep your employee engagement high. Voluntary vs Involuntary Termination A voluntary termination occurs when an employee leaves your company by their choice, whereas an involuntary termination occurs when you decide to terminate an employee. Bottom Line Countless reasons why companies terminate employees exist. Most states and cities do not require an employer to give an employee a reason for their termination because of the employment-at-will doctrine. However, some states and cities are passing laws requiring employers to provide employees with a reason for their termination, so make sure your company follows proper practices. Managing involuntary terminations effectively and legally is crucial to protecting your small business and keeping your staff engaged.

Washington State does not have state income taxes, but it does have a lot of specific laws concerning payroll. For example, hiring minors requires a special addition to your business permit. The minimum wage is higher than most states, and Seattle and SeaTac have their own minimum wage laws. Juggling all these nuances can be challenging. If you need help running your Washington payroll, consider . It files and pays your payroll taxes and covers any penalties you may incur from its mistakes. You can pay employees by direct deposit or paper check, and same-day payment options are available. Sign up for a free trial. Here’s a checklist to help you hit all the necessary steps: Step-by-Step Guide to Running Payroll in Washington When you have everything set up, Washington State payroll is not difficult to process. Below are the steps for how to do payroll in Washington state. If you’d like greater detail on general payroll procedures, consult our article on how to do payroll. Step 1: Set up your business as an employer. At the federal level, you need your Employer ID Number (EIN) and an account in the Electronic Federal Tax Payment System (EFTPS). Step 2: Register with Washington State. When you apply for your business license (or reapply upon hiring your first employee), the state will send you the information you need to start an account. First, you must create a SecureAccess Washington (SAW) account. Then add EAMS (Employer Account Management System) to your list of SAW services. Find full instructions on the Employment Security Department’s website. You also need to get a Workers’ Compensation Account (WCA). When you apply for your business license, a state account manager will contact you to set up your policy. Step 3: Set up your payroll. You need to set up pay runs at least monthly, with additional pay runs for overtime if needed, and determine how you’ll pay your employees. See “Minimum Pay Frequency” and “Different Ways to Pay Employees” later in the article. Another part of your payroll process is determining how you’ll collect and complete payroll forms and other documents you need to maintain compliance. Step 4: Collect employee payroll forms. This is easiest if you do it during onboarding. Forms include the W-4, I-9, and a direct deposit authorization. Washington does not have extra forms. Step 5: Collect, review, and approve time sheets. Washington State is one of the few states that allow up to 10 days from the end of a pay period to pay employees. This can help when calculating hours but also imparts different deadlines. See “Minimum Pay Frequency” below for details. If you have hourly or nonexempt employees, you’ll need a way to track their work time. It’s common for small business owners to create their own time sheets (consider one of our free templates) or use time and attendance software, some of which have free plans. Step 6: Calculate payroll and pay employees. Aside from compliance, a big part of processing payroll is performing payroll calculations. You’ll need to total hours worked (use our free time card calculator to help), gross pay, paycheck deductions, tax withholdings, benefit premiums, etc. As you calculate deductions, especially garnishments, be sure you are not taking more than 50% of an employee’s net pay. An Excel payroll template or payroll software can help automate this step. Step 7: File payroll taxes with the federal and state governments. Follow the IRS instructions for federal taxes (6.2% of employee paychecks for Social Security and 1.45% for Medicare plus a matching amount from your bank account). Unemployment taxes are also required—both state and federal (6% of the first $7,000 of each employee’s paycheck). Washington does not have state income tax. For Washington unemployment taxes (SUTA): You must send tax and wage reports each quarter whether you owe taxes that quarter. Even if you have no employees and no payroll for a quarter, you must file a no-payroll report. You can use the Employment Account Management System (EAMS) through SAW to file the reports and pay the taxes. Alternatively, you can file the report via EAMS and pay via ePay. To report accurately, you’ll need each employee’s name, Social Security number, gross income for the quarter, the number of hours worked in the quarter, and the Standard Occupational Classification. Unemployment tax reports are due by the following dates: Workers’ compensation reports and premiums are filed quarterly. You can file these reports on the Washington State Department of Labor & Industries website. Step 8. Document and store your payroll records. Washington State requires you to keep employee payroll records for at least three years, similar to federal regulations, except for the federal four-year requirement you have to follow for payroll tax forms. Records must include the following: Full name Home address Occupation Date of birth (for employees under 18) Employment start date Time of day and day of the week the employee’s workweek begins Actual hours worked on a daily and weekly basis Rate(s) of pay Total wages earned (including straight time, overtime, piece work units earned, and bonuses) Tips and service charges earned Addition to or deductions from wages Additional records required for paid sick leave You must keep additional records for employees under 18. Learn more about federal requirements in our article on retaining payroll records. Step 9: Do year-end payroll tax reports. These are the federal Forms W-2 (for employees) and 1099 (for contractors.) Employees and contractors must have these by Jan. 31 of the following year. In addition, you must send copies of each along with a summary form that totals them all to the IRS. Washington does not require additional state-specific year-end forms. Washington Payroll Laws, Taxes & Regulations In addition to state laws, you are still responsible for federal income taxes, Social Security, FICA, and Federal Unemployment Taxes. (FUTA). Social Security is 6.2% of each employee’s paycheck and Medicare is 1.45%. Both the employer and the employee will pay these taxes, each paying 7.65% for the combined Social Security and Medicare taxes. Washington State Taxes Washington does not have local or state income taxes. That makes things easier, but be sure to calculate unemployment insurance and workers’ comp. Unemployment Insurance Washington SUTA ranges from 0.0% to 5.4%. The average rate in 2022 is 1.3%. Taxes are against wages up to $62,500. You must file unemployment insurance on your hourly and salaried employees, including domestic workers earning more than $1,000 in a quarter. Below are general exemptions, but they almost all have specific circumstances. Get the complete list with conditions here. Small farms making less than $20,000 annually can exempt workers who attend school Appraisal practitioners Barbers, cosmetologists, massage therapists Yard workers Outside salespeople Musicians, entertainers, small performing artists Corporate officers Nonresident aliens Family employees Newspaper vendors Travel services Churches Work relief/work training Patients working in a hospital Students or spouses of students working in the university in exchange for financial assistance Work-study Nongovernment preschool There are 40 UI tax rates based on the cost of all employment benefits charged to you in the past four years divided by your taxable payroll of the same period. Then, they add a social-cost rate. You can calculate your total tax rate on the Washington State UI tax calculator online. Workers’ Compensation Insurance You must purchase workers’ comp through the Department of Labor & Industries (L&I). This will be set up when you apply for your business license. It’s no-fault insurance, protecting you from lawsuits for a work-related injury or illness. Your rates are based on the risk classification assigned to your business, the base rates for the classification, and the experience factor. The average employer cost is reported to be $1.34 per $100 covered in payroll. Minimum Wage Laws in Washington State The minimum wage for the state is $14.49 per hour, with a potential cost of living increase that is announced each September. This amount is set to increase to $15.74 per hour Jan. 1, 2023. If a tipped employee does not make the minimum wage after tips, their employer must make up the difference. Seattle’s minimum wage is $17.27 per hour and is set to increase to $18.69 per hour Jan. 1, 2023. SeaTac’s minimum wage is $17.54 per hour and will increase to $19.06 per hour Jan. 1, 2023. The following workers may be exempt from minimum wage: Minors 14 to 15, though they must make at least 85% of the stated minimum wage Jobs exempt from the minimum wage act You can apply for a sub-minimum wage certificate for the following workers: On-the-job learners, though they must make at least 85% of the stated minimum wage Certified student workers and student learners, though they must make at least 75% of the stated minimum wage Certified workers with disabilities Certain apprentices Washington State Overtime Regulations Employees who work over 40 hours in a seven-day workweek must get overtime pay at 1.5 times their regular hourly rate. Employees cannot waive their right to overtime pay. There are no limits on employer size. The following are exempt: Bona fide executive, administrative, or professional workers Outside sales Newspaper vendors or carriers Those engaged in forest protection and fire prevention Certain child care at nonprofits Maritime workers Ice hockey players between 16 and 21 years old For more details, check the Minimum Wage Act. Overtime for Medical Workers: The following medical workers cannot be made to work more than 12 consecutive hours without the option of at least eight consecutive hours of uninterrupted time off: RNs LPNs Surgical Technologists Diagnostic Radiologic Technologists Cardiovascular Invasive Specialists Respiratory Care Practitioners Certified Nursing Assistants This may be waived in emergencies or other specific circumstances. Overtime in Seattle: If you own a large retailer, food service company, or full restaurant in the City of Seattle, you may be subject to different scheduling and overtime rules. For example, if an employee works both closing and opening and the shifts are within 10 hours, they get overtime pay for the hours worked within that 10. Different Ways to Pay Employees You may pay employees by cash, paper check, direct deposit, or payroll card, as long as employees are not charged to access their wages. In some cases, meals or room and board can be used as a portion of wages. Learn more on the L&I website. Pay Stub Laws You must provide employees with a pay stub each payday, and it must contain the following information: The pay basis (e.g., hours or days worked, piece-rate basis, or salary) Rate or rates of pay Gross wages All deductions for that pay period All records required for paid sick leave Agricultural employers have additional pay stub and record-keeping requirements. Minimum Pay Frequency You must pay employees at least once a month unless federal law specifies a more frequent schedule. You must pay employees no later than 10 days after a pay period ends. If you pay monthly, by the end of the month, you must pay wages for hours worked from the first through the 24th. Wages earned after that may be folded into the next paycheck. Overtime: If you cannot reasonably calculate overtime in time to make the regular payday, then you may establish a separate payday for overtime wages. Below is an example for a semiweekly pay period. Paycheck Deduction Rules You cannot withhold more than 50% of an employee’s net income. In the case of federal deductions exceeding this amount, follow state law. You may deduct federal income taxes, FICA, unemployment insurance, child support, union dues, retirement deductions, and other federal or state-mandated withholdings. Tips and gratuities are subject to collection action. Convert housing, rent, and other benefits paid in lieu of wages to dollar amounts and count them as part of net wages. Child Support: The state issues the child support withholdings notice, and you must answer within 20 days, and pay the withheld amount within seven working days of each payday. Final Paycheck Laws Final paychecks must be paid on or before the next regularly scheduled payday. It cannot be withheld if employees do not turn in equipment, keys, uniforms, or other due items. However, you may be able to deduct money for court-ordered garnishments, deductions that benefit the employee (payroll advance), or deductions for medical, surgical, or hospital care. As an employer, you can choose to pay voluntary benefits like severance, personal holidays, or vacation in the final paycheck or separately. State HR Laws That Affect Payroll Washington State has quite a number of HR laws that you need to know when doing payroll. State New Hire Reporting If you are hiring employees for the first time, you need to refile your business license application with the state. Then the Employment Security Department will get you the information to set up your state unemployment tax account and the L&I will contact you to start your workers’ compensation insurance account. You must report new employees within 20 days of hire. To report, you need the employee’s W-4, birth date, and hire date. Lunch and Other Break Time Requirements Rest Breaks: Employees must get a paid rest break of at least 10 minutes every four hours. Youth under 16 get 10 minutes every two hours, and 16- to 17-year-olds, every three hours. This should be close to the midpoint of the work period and definitely before the third hour ends. They are considered in hours worked when calculating paid sick leave and overtime. In some cases, employees can take minibreaks that add up to 10 minutes. You must allow employees reasonable access to restrooms outside of rest breaks as well. Paid Meal Breaks: You must give employees working over five hours a 30-minute paid meal break (every four hours for employees under 16). It must start between the second and fifth hours of the shift. You must pay them during the meal break if they are on-duty, on-call, or have their break interrupted to return to work. Any work done during meal break counts for hours worked when calculating paid sick leave or overtime. Unpaid Meal Breaks: If the employee has no duties during their meal break, you do not need to pay them, nor do you count it as hours worked. Additional Meal Breaks: If an employee works more than three hours after their scheduled shift, they deserve an additional meal break within five hours of the last meal break. They can waive this requirement if desired but cannot waive rest breaks. Emergency Workers: If you have 20 or more employees and any serve as Volunteer Firefighters, Reserve Peace Officers, or Civil Air Patrol Members, you must allow them to arrive late or be absent from work if they are working at or returning from an emergency call. Child Labor Laws Washington State defines a minor as anyone under 18. To hire a minor, you need to: Get a minor work permit endorsement on your business license Have a completed parent/school or summer authorization form for the employee Verify the minor’s age and keep proof on file Certain age groups are restricted from specific jobs. Check the L&I website for a full list. Immediate family members on the family farm are exempted from these restrictions. Jobs deemed appropriate for various age groups include: 12- and 13 years old: Hand-harvesting berries, bulbs, cucumbers, or spinach (may need court permission to work) 14- and 15 years old: Retail, creative, some food service jobs, and foot- or-bike delivery 16- and 17 years old: Construction, manufacturing, sign-waving, landscaping, some food service jobs The number of hours allowed depends on whether school is in session and the age of the employee. 14- & 15 years old *Eight hours Saturday through Sunday **9 p.m. June 1 to Labor Day 16- & 17 years old *Eight hours Friday through Sunday **Midnight Friday through Saturday or the day before a school holiday ***Midnight Friday through Saturday Time Off Washington State does not require you to pay for holidays, vacations, or bereavement leave. In addition, it does not enforce any agreements made between you and an employee concerning such leaves. There are exceptions for leave taken under the Family Care Act, and some local municipalities may have different rules. If you grant paid holidays, they are not included when calculating overtime. Payroll Forms You’ll need numerous federal forms and at least one state form for SUTA. Washington State W-4 Form No state income tax, so no state W-4 form. One less thing to worry about! Washington State Unemployment Taxes Forms Amended Tax & Wage Report (Form 5208D): For reporting state unemployment taxes each quarter Quarterly Unemployment Insurance – Wage Detail (Form 5208B): The payment coupon to accompany unemployment insurance taxes Federal Payroll Forms W-4 Form: To help employers calculate taxes to withhold from employee paychecks W-2 Form: Reporting total annual wages earned (one per employee) W-3 Form: Reports total wages and taxes for all employees Form 940: Reports and calculate unemployment taxes due to the IRS Form 941: Filing quarterly income and FICA taxes withheld from paychecks Form 944: Reporting annual income and FICA taxes withheld from paychecks 1099 Forms: Providing non-employee pay information that helps the IRS collect taxes on contract work State Payroll Tax Resources/Sources Washington State Department of Labor & Industries: You can find the information for labor laws, workers’ rights, and more. Much is written for employees rather than employers. Administrative Policies Page: The L&I page that lists all applicable salary and labor laws, from minimum wage to industrial welfare. Washington State Department of Social and Health Services: This is where you get information on employer resources, including new hire reporting. Washington State Unemployment Taxes Forms and Publications Page: Offers links to all the forms, plus publications and handbooks regarding unemployment taxes. Bottom Line While Washington State does not charge state income tax, you are still responsible for SUTA and paying workers’ compensation insurance. It has some specific rules on overtime, exemptions to UI, and pay frequency, so be sure you understand the regulations when setting up your payroll. In addition, you’ll need to comply with HR laws, including required break time and sick leave plus nuances for certain groups of employees, like military members.