Overtime protections were first put into place by the Fair Labor Standards Act of 1938, and established the general standard that workers be paid time-and-a-half for any hours worked over 40 hours in a week. In general, all hourly employees are guaranteed overtime, and salaried employees are presumed to have the same guarantee unless they both: (1) make more than a salary threshold set by the Department of Labor, and (2) pass a test demonstrating that they primarily perform executive, administrative, or professional duties.
An ever-popular method for small businesses to acquire some extra—albeit temporary—hands on deck is to hire interns. Typically college students with similar career aspirations are eager to gain some real life experience, or at minimum a few lines for the old resume. So, with motivated college students at the ready to perform some of the more mundane tasks that small businesses have to deal with, owners are understandably eager to jump at the chance to bring in some free—or at least low cost—young workers.
The prospect of hiring workers, while exciting, can be intimidating to new business owners, Employment law can be a confusing and time-consuming minefield, and the consequences of making a mistake can range from costly to financially devastating. Generally, employers must consider a number of new responsibilities, including withholding income taxes, paying Social Security and Medicare taxes,unemployment tax and insurance not to mention the bevy of registration and compliance requirements at the local, state and federal level.
I'm frequently approached (virtually) by entrepreneurs that have great ideas for a new business to start.
The licenses and permits you will need to operate your business vary widely depending on your location and type of business. However, there are a few items that will be necessary for nearly all new businesses.
Every business owner thinks about how his or her company will grow from a small entrepreneurial idea, to a budding business, to something sustainable and long-lasting. Employees are almost certainly part of that process. But, for many small business owners, employment law is a complex web of seemingly endless laws and regulations which can easily trip up even the savviest and cautious business owner leading to unwanted and often costly consequences. So what’s a small business owner to do? Well, a few things come to mind.
Q: I think I’m ready to start a corporation, but I’m a little confused on something. I know that companies have directors, officers and shareholders, but what exactly is the difference?
The main document that must be filed in order to apply for non-profit recognition under section 501(c)(3) is IRS Form 1023, a substantive and complex web of an application. If exemption is not requested, then contributions to the organization are not tax deductible and the organization could be subject to income tax even though it would have qualified if the appropriate Form 1023 application was filed.
Organizations recognized as exempt under section 501(c(3) of the Internal Revenue Code are generally not required to pay income tax, which of course, is a beautiful thing if you run a business. This exemption from tax includes all sorts of things, from charitable contribution income to interest and dividends from investments.