Payroll is a complex process with changing legislation, varying allowances and deductions and compliance issues. Many businesses manage payroll in-house while some outsource it to a third party. The goal is to adapt constantly changing legislation and to avoid compliance risk. One of the most important concerns of an employer is to meet statutory compliance in payroll. Payroll is one of the most regulated functions in an organization that must meet federal, state and local jurisdictions requirements.
What is Statutory Compliance?
Statutory Compliance is the process of fulfilling official requirements. Hence, statutory compliance is a legal framework to which organizations must abide by. In nutshell, statutory compliance means adhering to rules and regulations.
A lot of hard work, time and money go in to make sure payroll is compliant through statutory audits. Each company has different payroll challenges, but what you need is the solution that must be reliable, integrated, customizable and meet all requirements of the employees.
- Income Tax:
Employers are responsible for submitting taxes to Internal Revenue Service’s (IRS) which is a US department of the Treasury.
- Minimum Wage
- Overtime pay:
If the employers require their employees to work overtime, they generally need to pay them at a premium rate.
- Social security and medical insurance
- Sick pay
- Vacation allowance
- Maternity Pay
- Payroll record keeping