Payroll Compliance Checklist: Are You Following the Rules?

Stay Compliant with Payroll: Essential Checklist

1. Employee Status Verification
2. Accurate Data Management
3. Tax Withholding Essentials
4. Wage & Hour Law Adherence
5. Proper Handling of Deductions
6. Regular Compliance Reviews

1. FOLLOWING THE RULES?
Payroll Compliance Checklist
1. Employee Status Verification
Classification: Differentiate
between full-time, part-time, and
independent contractors.
Exempt vs. Non-Exempt: Know
who qualifies for overtime pay.
2. Accurate Data Management
Record-Keeping: Track hours
worked, employee details,
and payroll records.
Data Security: Ensure sensitive
payroll data is stored securely
and confidentially.
3. Tax Withholding Essentials
Federal Taxes: Withhold the
correct amount of federal
income taxes.
State and Local Taxes: Adhere to
local tax requirements.
4. Wage & Hour Law Compliance
Overtime Pay: Ensure eligible
employees receive the correct
overtime rate.
Final Pay Requirements: Issue
final paychecks promptly as
per state law.
5. Proper Deductions Handling
Authorized Deductions: Only
make deductions permitted by
law or employee agreement.
Garnishments: Follow legal
procedures for any wage
garnishments. 6. Regular Compliance Reviews
Self-Audits: Periodically review
payroll processes for errors.
Staff Training: Ensure payroll
staff is knowledgeable and
up-to-date with compliance rules.