But the good news? Calculating your FTE is fairly straightforward, and once you get the hang of it, you’ll find that it can make small business budgeting and resource allocation much easier. It can even help you qualify for certain tax credits and small business health programs. 

That’s why we’re here to clarify what FTE is and how it works for small businesses in the simplest way possible. We’ll also show you how to calculate it step-by-step with concrete, easy-to-understand examples.

What is FTE (full-time equivalent)?

A full-time equivalent (FTE) measures the number of hours an employee works in relation to a full-time position. It’s important to know that the Internal Revenue Service (IRS) considers any employee who works an average of 30 hours per week or 130 hours per month full-time.

It’s important to note that FTEs aren’t the amount of full-time employees you have, although it may seem that way. Rather, your FTE count shows you how much every team member works based on a full-time schedule. You’ll still have an FTE count even if you employ all or mostly part-time employees. 

You can calculate FTEs based on the average number of hours team members work per week. The FTE formula looks like this:

FTE = The number of hours your employee worked/Standard full-time hours in your organization

As a basic example, let’s say that one of your small business team members works 30 hours per week. You’d calculate it like this:

• FTE = 30/30

FTE = 1

An FTE of 1 shows us that the employee in question is working 100% of a full-time schedule. Your full-time employees will always get an FTE of 1 when you calculate it based on IRS guidelines.

How does FTE work with part-time employees? 

You can calculate FTE for part-time staff the same way you do for full-time staff. So, for instance, let’s say that you have a team member who only works 15 hours per week:

• FTE = 15/30

FTE = 0.5

The FTE for this employee is 0.5. Looking at it another way, they work 50% of a full-time schedule.

Why do small businesses need to calculate FTE?

The main reason — but not the only reason —  that small business owners need to calculate their FTE is to determine the kind of health benefits they can offer. 

Under the Affordable Care Act (ACA), employers are obligated to offer their employees group health insurance if they had a total of 50 FTEs in the previous year. So, even if they have a mixture of part-time and full-time workers, they still have to offer this kind of coverage to stay compliant with the ACA. 

Still, there are a few other reasons why it’s a good idea to stay on top of FTE count:

• The ACA’s Small Business Health Options Program — If you have fewer than 50 FTEs, your business might be eligible for special insurance coverage through this program. 
• Specific tax credits — For example, according to the IRS, a business with fewer than 25 FTEs qualifies for the small business health care tax credit as long as it also:
  • Pays less than $56,000 in average wages per year for each FTE employee.
  • Offers a qualified health plan through the Small Business Health Options Program Marketplace.
  • Covers at least 50% of the employee-only option for each employee.
• Compliance with labor laws — There are certain federal regulations that apply to businesses of particular sizes, like the Americans with Disabilities Act, which prohibits employers from discriminating against employees with disabilities at any time of their employment.
• Staffing and labor costs — Your FTE count can give you a more accurate assessment of current staffing gaps so you can hire new team members and allocate resources more effectively.

Pro tip: If you want answers to all your FTE-related questions, you can contact a live HR expert with Homebase HR Pro tool. They’ll be happy to answer them, as well as queries about taxes, regulations, and labor laws. They can even review your current policies and procedures. 

How do you calculate FTE?

It’s possible to calculate FTE count manually with a few simple steps and tools like paper and a pencil or an Excel spreadsheet. Let’s break down how to do just that.

1. List all employees and how many hours they each work

If you’re unsure which of your team members count as employees for the purposes of this calculation, we’re talking about any of your workers — even friends and family — that receive W-2s. Freelancers and contractors don’t count, nor do you as a business owner, unless you’re paying yourself wages and receive a W-2.

First, write down how many hours each of your employees works per week on average, not taking overtime or breaks into account.

Here’s how that might look:

You can save a lot of time and simplify this step using Homebase’s free time tracking and timesheet tools, which automatically update employee hours as soon as team members track their time within the Homebase mobile app. Plus, you’ll feel confident in knowing that your hourly totals are always accurate.

2. Identify your number of full-time and part-time employees

Remember that the IRS defines any employee who works 30 hours per week or more as full-time. So, if you’re determining FTE for compliance and healthcare eligibility purposes, keep that in mind for your calculations. 

Let’s use the same example from before:

Note: If your business considers 40 hours per week full-time, you can make a separate FTE calculation with that in mind. While you won’t use that FTE count to figure out if you’re obliged to offer group health insurance, it may help you with budgeting, labor costing, and hiring.

3. Calculate your FTE

First, you’ll add the part-time workers’ Tom, Malik, and Eileen’s total hours together. Then, divide by 30:

• 21 + 15 + 25 = 61
• 61/30 = 2.03

You’ll round this figure down to the nearest whole number. Now, you know the FTE count for your part-time employees, which is 2. 

Now, you’ll add this total to your number of full-time employees, which is also 2.

So, within the framework of this example, your full FTE count would be 4. In this case, you’re not required to offer group health insurance according to the ACA, but you may still be eligible for specific tax credits for small businesses.

A real-life FTE example

Let’s say that you run a gourmet market that has a full-time staff of 15 full-time employees and 40 part-time employees. 

Your part-time employees work about 20 hours a week keeping your shelves stocked, working as cashiers, and keeping your store clean. Your full-time employees run specific departments, work with suppliers, manage the part-time staff, and report sales numbers to the owner.

You add up your part-time employees’ weekly hours and come up with a total of 345 because some of them work over 20.

• 345/30 = 11.5 (rounded up to 12)

Then, add that to your number of full-time employees.

• 12 + 15 = 27

Your FTE count is 27.

But what does it look like if your staff fluctuates throughout the year because you sometimes rely on seasonal workers? 

If your seasonal staff members work 120 days or fewer during the taxable year, they don’t count as FTEs, according to the IRS.

Homebase makes it easy to stay compliant

Now that you’ve seen what calculating FTE looks like in action and can apply it to your own small business, you likely realize that it’s not as intimidating as it seems. That’s great news for you, because once you grow more confident in determining your FTE count for compliance and tax purposes, you’ll find it much easier to apply it to your budgeting and staffing practices. 

We’ve also shown you that it’s completely possible to calculate FTE on your own. However, without help from software, you should double and even triple-check your math or seek out another pair of eyes to ensure everything’s accurate. 

That’s why we recommend using a small business management platform like Homebase to make the entire process easier. Our free scheduling, time tracking, and timesheet tools work together to ensure that your employee hours are always updated and accurate, and even account for breaks, overtime, and PTO. 

And when you upgrade to include HR Pro in your plan, you’ll get access to a team of HR experts who can answer any questions you have about employment law, taxes, and state and federal regulations. All in all, you’ll never have to feel like you’re going it alone again.

The post FTE For Small Businesses: Why It Matters and How to Calculate It appeared first on Homebase.

In the U.S., tips are a crucial part of servers’ income, which is why their minimum wage is $2.13 an hour rather than the federal minimum of $7.25 (in many states). This wage gap explains why our servers go above and beyond to deliver exceptional customer service and highlights the importance of American tipping culture.

As tipping options continue to pop up in new places like fast-food restaurants, stadiums, and even retail stores, business owners and managers must figure out how to properly track, report, and withhold taxes for this additional income. We’ll walk you through the entire process. After all, no one likes a surprise at tax time.

What are tips? 

Tips are those extra bucks that customers voluntarily give service workers as a token of appreciation for a job well done. Any business can prompt its customers for a tip, and more and more businesses are doing so. Tips are most commonly expected in restaurants, hotels, beauty salons, taxis, and food delivery.

There are a few ways that businesses can handle and distribute tips. Typically, customers leave service providers (like servers or hairstylists) a percentage of their bill as a tip. While the percentage varies by industry, these tips are generally given directly to that employee. However, some businesses like restaurants require servers to tip out a percentage to share with those who don’t get tips. Think cooks, dishwashers, and hosts—they usually receive a portion of cash from a shared tipping pool. Pooled tips can come from individual employees, communal tips jars, POS tips (like at fast-food chains or coffee shops), and event gratuities given to catering companies. 

Managers have the flexibility to determine how tips are incorporated into their team’s compensation. Restaurants may include tips in regular paychecks, while bars might distribute cash after shifts. Collaborative settings like hotels may periodically pay out pooled tips as bonus payments. However, these methods often require labor-intensive manual calculations. That’s why tech-savvy establishments opt for automated payroll systems to simplify and streamline the entire process.

Are tips taxable?

The short answer is that yes, tips are taxable—and don’t let anyone tell you otherwise. It doesn’t matter if tips are given in cash or included on a credit card transaction, anyone who makes over $20 in tips (in a calendar month) has to report the income to their employer.

From there, it’s on the employer to report the additional income and withhold relevant taxes. Why? Well like it or not, the IRS considers tips taxable income—yes, even cash tips. And just like any other form of income, those snoopy folks at the IRS want to know about it so they can take their cut. 

If you’ve been in the service industry for a while, you’ve probably overheard people chatting about how they don’t report their tips. They assume that the IRS won’t bother auditing individuals with lower earnings. However, that’s a very real—and very dangerous—misconception. If you have a few team members operating under this assumption, they could be in for a rude awakening if or when the IRS catches wind.

We’re talking about owing back taxes and interest, facing fines, and even dealing with potential legal consequences. What’s worse? Your business might also be held liable since it’s your responsibility to accurately report their additional income, withhold relevant taxes, and ensure those taxes are duly paid. 

Worried your team’s tipping culture isn’t up to code? Don’t stress—grab a pen, and we’ll walk you through the process.

How do you pay tax on tips? 

It’s on management to accurately report and withhold tax on tips. That means it’s important to fully understand your responsibilities and establish a process that makes it easy for your team to track and report their tips. Add these steps to your payroll process to ensure everyone is on the same page when it comes to managing their tip taxes.

Step 1: Set up payroll

To start, ensure everyone on your team is properly set up in your payroll system. This includes providing them with an Employer Identification Number, setting up payroll (ensuring they’ve signed direct deposit, W-4, W-9, and I-9 forms), and establishing a payroll schedule.

Step 2: Implement an easy tip reporting method

Make sure your team knows to keep track of their tips. If your POS or payroll system doesn’t have a tip reporting feature, your team can use this form to record their tips.

Keep in mind that restaurant employees (who earn tips as part of their wages), might be paid less than the standard minimum wage depending on the state’s tip credit regulations. If you manage a team of servers that earn less than the federal minimum wage, they’ll need to report their tips daily to ensure they’re accurately compensated.

Step 3: Use tip reports to determine taxes to withhold

Calculate owed taxes, including Medicare, social security, and federal income tax based on your employees’ wages and tip reports.

Don’t forget to pay the employer’s portion of social security and Medicare taxes.

Step 4: Report uncollected taxes (if applicable) 

Do you have a member of your team whose wages don’t cover all of these taxes? Prioritize withholding federal income tax first, followed by social security, Medicare, and taxes on reported tips. 

Adjust the uncollected amount on their employment tax return.

Report uncollected social security and Medicare taxes on the employee’s W-2.

Step 5: Allocate and report tips

If your team’s total tips equal less than eight percent of gross receipts, distribute the difference among employees who received tips. Base this on their share of gross receipts, total hours worked, or a specific written agreement.

Report these tips on form W-2 in the allocated tips box for each employee.

Step 6: Keep an eye on employee reporting

To help you accurately calculate payroll and relevant taxes, make sure your team continues to report all of their tips.

Remember to keep all tip records in case anyone gets audited.

Handling tips can be overwhelming. When you take charge of the process, you’ll reduce stress and make tax season more manageable. Of course, if your hands are already full with countless other managerial tasks, it never hurts to bring in reinforcements.

With Homebase, you can say goodbye to tedious tax forms and manual calculations. Our payroll system automates everything — from calculating wages and tips to processing taxes and making payments to your employees, state, and the IRS. 

Make tax time easier. Simplify tip tracking and tax management with Homebase Payroll. Try it for free, today.

The post Dollars and Sense: How to Report and Withhold Tax on Tips appeared first on Homebase.

But have you ever sat down and defined part-time vs. full-time work at your business? What it means to be full-time vs. part-time, the distribution of each across your teams, and if this distribution best serve your goals?

It’s an easy exercise with the potential for a huge payoff. It can make it clearer which employment laws apply to you (and can benefit you and your employees), help you build better teams, and be a more efficient, profitable operation overall.

Let’s start by looking at the legal definitions of the two types of work—or, more accurately, a lack thereof. 

What is considered a part-time job? 

While there’s no concrete definition of part-time work in the US, what separates part-time work from full-time work largely comes down to the number of working hours. 

Here’s what three governing bodies have to say on the matter:

• • US Department of Labor (DOL): “The Fair Labor Standards Act (FLSA) does not define full-time employment or part-time employment. This is a matter generally to be determined by the employer.”
  • US Bureau of Labor Statistics (BLS): “Full-time workers are those who usually work 35 or more hours per week. Part-time workers are those who usually work fewer than 35 hours per week.”
  • Internal Revenue Service (IRS): “For purposes of the employer shared responsibility provisions, a full-time employee is, for a calendar month, an employee employed on average at least 30 hours of service per week, or 130 hours of service per month.”

In terms of authority, you may want to listen to the DOL and IRS more than the BLS. 

That’s because the BLS’s definitions of full time and part time come from the Current Population Survey (CPS) and are for statistical purposes only. This means their definitions, while useful in letting you know how part-time work is currently being defined by real US employers, aren’t legal definitions. 

With all of this in mind, we can loosely define a part-time job in the US as:

• A job with fewer than 30 working hours per week, or 130 hours per month, unless otherwise defined by the employer.

Types of part-time jobs

There are many jobs that can be fulfilled on a part-time basis. Some of the most common include:

• Retail positions (cashier, sales associate)
• Customer service representative
• Receptionist or front desk positions
• Administrative assistant
• Data entry clerk
• Food service jobs (waiter/waitress, barista)
• Tutor or teaching assistant
• Freelance or gig work (writing, graphic design, programming)
• Library assistant or clerk
• Call center operator
• Personal assistant or secretary
• Event staff or coordinator
• Childcare provider or babysitter
• Fitness instructor or personal trainer
• Home health aide or caregiver
• Receptionist or front desk positions
• Telemarketer
• Research assistant
• Delivery driver

What is a full-time job? 

Like with part-time work, there’s no one legal definition of full-time work in the US.

However, building on our loose definition of part-time work as 30 or fewer working hours per week, we can loosely define a full-time job in the US as:

• A job with 31-40 working hours per week (often closer to 40), or as defined by the employer.

Types of full-time jobs

Some jobs that are more typically filled on a full-time basis include:

• Software developer or programmer
• Registered nurse or healthcare professional
• Accountant or financial analyst
• Marketing manager or specialist
• Human resources manager or specialist
• Project manager
• Sales representative or sales manager
• Teacher or educator
• Engineer (civil, mechanical, electrical, etc.)
• Operations manager
• Customer service manager
• IT (Information Technology) specialist or administrator
• Lawyer or legal assistant
• Managerial roles in retail, hospitality, or other industries
• Financial advisor or planner
• Scientist or researcher
• Social worker
• Electrician or plumber
• Police officer or law enforcement professional
• Architect
• Graphic designer or art director

Pros and cons of part-time jobs 

Pros of part-time jobs

• Flexibility: Having part-time workers makes scheduling easier. You can adjust staffing levels based on our business needs, and more easily find fill-ins if someone calls in sick.
• Cost savings: Pay, benefits, and other employee costs are often lower with part-time employees than with full-time ones. 
• Diverse skill sets: The less committed nature of part-time work makes bringing in new people easier, which can be a blessing if you need specialized expertise for specific tasks.
• Adaptability: As demand wavers, you can easily increase and decrease your team’s capacity with part-time workers.
• Increased productivity: Working fewer hours, part-time workers can bring more energy to their jobs.
• Access to a larger labor pool: You can tap into a broader pool of available workers, such as students, retirees, and those seeking supplemental income for part-time positions.
• Risk mitigation: Less commitment means less risk during uncertain times.

Cons of part-time jobs

• Reduced continuity: Part-time workers, given their different schedules, may not have the same level of commitment and continuity as your full-time team members. This could potentially impact your team’s cohesion.
• Training costs: Dealing with constant turnover among part-time employees may result in higher training costs, as new hires might need more frequent onboarding.
• Less employee engagement: Part-time workers might not feel as connected to your company culture, leading to lower levels of engagement and loyalty.
• Possible communication challenges: Juggling the varying schedules of part-time workers might introduce some communication and coordination challenges.
• Potential for burnout: Part-time workers may have other obligations outside of their job with you, which might mean burnout from burning the candle at both ends.

Pros and cons of full-time jobs 

Pros of full-time jobs

• Consistency and stability: The peace of having stable, full-time employees might be worth more than what you’d save bringing in part-time workers. 
• Higher commitment: Expect higher levels of commitment to your company, goals, and long-term success.
• Career development: Full-time workers are more likely to develop and advance within your company.
• Investment in training: It’s easier to invest when you know someone’s going to be around for a while.
• Better team integration: Familiarity and consistency lends to team bonding, and a bonded team means a more productive, happy team. 

Cons of full-time jobs

• Higher costs: Going full-time often means more benefits like health insurance and retirement plans, bumping up your overall labor costs.
• Reduced flexibility: Full-time workers might not have the same wiggle room in their schedules, making it trickier to quickly adapt when workloads change or someone calls in sick.
• Potential for burnout: Longer hours means more of a risk of burnout, especially over extended periods of time.
• Limited access to specialized skills: Bringing in a part-time worker for a specific skill or task is a lot easier (and often more affordable).
• Less adaptability: If something changes at your company, reorganizing a full-time workforce is often more challenging. 

Payments and benefits 

Hours worked is one way in which part-time and full-time employees differ; another is how they are paid and the benefits they receive. 

Part-time payment and benefits

There’s no law stating how part-time employees must be paid. That said, the most common way to pay part-time employees is by the hour. 

A time clock begins when part-time employees clock in for work at the beginning of the day, pauses when they go for break or lunch, resumes afterward, and ends whenever they leave for the day. The total time worked during this time is what their paychecks are based on.

If you pay employees by the hour, you must at least pay them your state’s legal minimum wage. If your state doesn’t have a minimum wage, you must at least pay them the federal minimum wage of $7.25 an hour.

In cases where part-time work exceeds 40 hours per week (remember, there is no stated legal boundary separating part-time from full-time work), you also have to pay overtime. According to the Department of Labor, overtime pay is “not less than time and one-half the regular rate of pay for all hours worked over 40 hours in a workweek.

For example, if you normally pay someone $10 an hour, you would need to pay them at least $15 an hour for overtime. 

Keep in mind that overtime only applies to non-exempt workers, who are both hourly and salaried workers that:

• Earn less than $684 per week or $35,568 annually
• Perform job duties outside of the exempt professions

Other than being paid hourly, part-time workers may receive a fixed salary or a predetermined amount for completing a specific project or task

There can also be combinations of payment methods. For example, someone may be paid by the hour and earn a commission on sales they make. 

Do part-time employees get benefits? 

US law doesn’t cover the provision of benefits to part-time employees.

This means that, as long as you follow all minimum federal, state, and local requirements, you have control over which part-time employees get which benefits, if any. 

Full-time payment and benefits

Beyond what’s required in the Fair Labor Standards Act (FLSA), the US government doesn’t mandate how full-time employees are to be paid.

While full-time employees can be paid hourly, they most commonly receive a fixed salary. This is most often a lump sum paid monthly, or bi-monthly, based on an assumed, ongoing 40-hour-per-week commitment. 

The same rules outlined above around overtime apply to full-time work: If a non-exempt full-time employee works more than 40 hours per week, that employee is entitled to overtime pay.

Do full-time employees get benefits? 

Largely speaking, you’re not required by law to give full-time employees benefits, which can include: 

• Health insurance
• Retirement plans (e.g., 401(k))
• Paid time off (vacation, holidays, sick leave)
• Life insurance
• Disability insurance
• Flexible spending accounts (FSAs)
• Health savings accounts (HSAs)
• Employee assistance programs (EAPs)
• Educational assistance/tuition reimbursement
• Wellness programs
• Flexible work arrangements
• Employee discounts

Sometimes, you are required to provide benefits. Consider these examples (read more about each of these acts in the section below):

• The Affordable Care Act (ACA) requires applicable large employers (those with 50 or more full-time equivalent employees) to offer affordable health insurance that meets certain minimum essential coverage standards.
• The Family and Medical Leave Act (FMLA) requires covered employers to provide eligible employees with unpaid, job-protected leave for specified family and medical reasons. However, this is leave without pay.

It also depends on where you’re located in the country, as there are state and local regulations relating to benefits. For example, in Massachusetts, employees who work for employers having 11 or more employees may earn and use up to 40 hours of paid sick time per calendar year.

Outside of these situations, which benefits you provide—and to whom—is largely up to you. 

Full-time and part-time employment law

For your own research, we recommend reading these pieces of legislation on the topic of full- vs. part-time jobs. 

Fair Labor Standards Act (FLSA)

The Fair Labor Standards Act (FLSA) establishes minimum wage, overtime pay, recordkeeping, and youth employment standards affecting employees in the private sector and in Federal, State, and local governments.

The Affordable Care Act (ACA) 

The “Affordable Care Act” (ACA) is the name for the comprehensive health care reform law (passed in 2010) and its amendments. The law addresses health insurance coverage, health care costs, and preventive care.

Employee Retirement Income Security Act (ERISA)

The Employee Retirement Income Security Act of 1974 (ERISA) is a federal law that sets minimum standards for most voluntarily established retirement and health plans in private industry to provide protection for individuals in these plans.

The Family and Medical Leave Act (FMLA)

The FMLA entitles eligible employees of covered employers to take unpaid, job-protected leave for specified family and medical reasons with continuation of group health insurance coverage under the same terms and conditions as if the employee had not taken leave.

The post The Delicate Art of Choosing Part-Time vs. Full-Time Workers appeared first on Homebase.

EFTPS tax payments are a convenient, secure way for your small business to pay its federal taxes. But in order to make use of the EFTPS system, you’ll need to give yourself a bit of time and follow the correct steps. Let’s dive into what the Electronic Federal Tax Payment System is, go through the steps of EFTPS enrollment, and learn what to watch out for as a EFTPS user.

What is the Electronic Federal Tax Payment System?

The Electronic Federal Tax Payment System (the EFTPS) is a free tool from the U.S. Department of the Treasury that processes secure tax payments online via direct debit from a bank account. It’s used for both owed and estimated federal taxes.

How does the EFTPS work?

The Electronic Federal Tax Payment System lets taxpayers file directly with the IRS, depositing taxes both from employee check withholdings and from a business. But this can only happen after correct EFTPS enrollment, a process that can take up to a week.

After the initial online registration, a physical piece of mail is sent to the address you provide. This verifies the bank account details for your debit payments and give you a unique personal identification number (PIN). You’ll need this personalized PIN number, along with your Taxpayer Identification Number (TIN), to finish registering.

Once you’re enrolled, the EFTPS system lets you make tax payments 365 days a year, 24 hours a day, online or by telephone. Bear in mind that if EFTPS isn’t working correctly or is temporarily unavailable, you still meed make your payments on time, whether in person or through the mail—on-time filing remains your responsibility, so don’t leave it ’til the last minute. 

Who uses the EFTPS and why?

Over 12 million individuals and groups use the Electronic Federal Tax Payment System every year to process their secure federal tax payments. From businesses to nonprofits to other organizations, the EFTPS is an appealing method of interacting with the IRS, ideal for its no-cost convenience and security. 

Corporations use the EFTPS since they’re already required to required to deposit their federal taxes electronically (including employment tax deposits, excise tax deposits, and corporate income tax deposits). Businesses can also pay their income, payroll, and other federal taxes electronically. Across the board, using the EFTPS is the easiest way to handle these transactions.

Payroll service providers and other authorized third parties also use the EFTPS to make payments on behalf of businesses. 

What are the benefits of using the Electronic Federal Tax Payment System?

As a small business owner, you have good reason to consider setting up an EFTPS account. The benefits of using the Electronic Federal Tax Payment System include the ability to:

• Pay taxes online from your home, office, or any location with internet access, 24/7
• Schedule payments ahead of time (up to 365 days in advance) so deadlines aren’t missed
• Use a secure government system that protects your sensitive financial information with three-factor authentication
• Get notified after you make a payment: receive an email as soon as your payment goes through, or receive notification by mail
• Keep track of your payment history: check online to see your payment history from as far back as 16 months
• Pay all your federal taxes in one place, including income, employment, estimated, and excise taxes

Are there any downsides to registering with the EFTPS?

While there are a ton of benefits of the Electronic Federal Tax Payment System, a potential hiccup can be the length of time needed for the registration process. You’ll need to account for the wait time—five to seven days for your PIN to arrive at your IRS-registered address—before you can begin using the system as an enrolled user. If you need to make a payment before you’ve received your PIN, you’ll have to give them a call.

In addition to paying your taxes on time, it’s also up to you as a business owner to submit the correct amounts. To make sure your payroll tax responsibilities are met accurately, you may want to opt for professional tax services and have them submit to the EFTPS on your behalf.

EFTPS versus Direct Pay: what’s the difference? 

You may have heard of the IRS’s other electronic payment tool, Direct Pay, and wondered which system is appropriate for you. The difference between EFTPS and Direct Pay is a pretty simple one.

While Direct Pay is only available to individuals, both individuals and business owners can pay federal taxes using EFTPS. For your small business, Direct Pay may not be the best choice for making your small business tax payments for the following reasons:

• Direct Pay doesn’t save your personal information; so reentering it every time you use it is a must
• Direct Pay only allows you to pre-schedule payments 30 days in advance, and only one payment can be scheduled at a time
• Direct Pay caps the amount of money that can be sent to the IRS, limiting you to two payments within a 24-hour period. Each payment must be less than $10 million
• Direct Pay is only available Monday through Saturday from midnight to 11:45 p.m. ET, and Sunday from 7 a.m. to 11:45 p.m. ET

How to enroll in the EFTPS

If you’re a new business, you were probably pre-enrolled automatically in the Electronic Federal Tax Payment System. You probably received a letter sent to your business address that contains your PIN (if you didn’t receive this letter, you can get one by calling 800-555-3453).

Haven’t yet enrolled? Now’s a great time! Follow the steps below to start saving yourself time.

1. Visit the official EFTPS site, EFTPS.gov
2. Submit the following information:
   • Your Taxpayer Identification Number (TIN)
     If you’re enrolling your business, provide your Employer Identification Number (EIN). If you’re a business owner enrolling individually so you can pay your income taxes and make estimated tax payments, use your Social Security number (SSN).
   • Your business name and address as they appear on your IRS tax documents
     If you’re using EFTPS to deposit payroll taxes, for example, this would be your business name and address.
   • Your contact information and phone number
   • Your bank account number and nine-digit routing number
3. Wait 5 to 7 days for approval: a PIN will arrive via mail
4. Use the PIN to create an online account, choosing your login name and password (each time you use the EFTPS going forward, you’ll need both your PIN and password)
5. Start making or scheduling your tax payments

Making your initial EFTPS tax payment is simple. Just log on to the site, select the “make a payment” option, and follow the instructions. Choose the type of payment, then select the date you want your funds transferred. Once the transaction is complete, you’ll receive a confirmation number, which you should print out for your records.

Be aware that the payments you make through the EFTPS aren’t usually processed the same day. So if you’re on a payment deadline, contact the IRS to arrange for a same-day wire payment. If you’ve pre-scheduled a payment, you can make changes or cancellations up to two days prior. 

How to detect and avoid EFTPS scams

The Electronic Federal Tax Payment System is exclusively a payment system. The government doesn’t have access to your bank account or know what’s there. It also can’t remove any additional funds to satisfy outstanding taxes. The only thing that can be processed are your explicitly authorized payments.

Outside of the EFTPS website, though, be aware that phishing scams exist in the form of fraudulent emails targeting EFTPS users.

Keep an eye out for emails telling you that your identification number has been rejected, followed by a link to change your number. There’s a good chance it’s a scam, and the link contains malware. Malware will likely intercept your banking info and cause a huge headache. If you receive this type of suspicious email, ignore it and contact the EFTPS to let them know.

Simplify payroll taxes and more with Homebase

Running payroll as a small business owner is complicated and time-consuming. It involves so much more than just figuring out wages and transferring payments. Calculating and withholding taxes, making payments on time, staying compliant with federal, state and local laws… All essential parts of running your payroll right. And you have to do all these things while actually running your business.

If it’s your first time running payroll, or it’s been a while since you’ve had an employee, it can feel daunting getting up to speed. There are so many steps involved in carrying out the payroll process on your own. It’s a lot to keep a handle on; especially if you don’t have an HR service to help.

Payroll software specifically designed for small businesses can help enormously. With the right software, you’re saved the headache of having to remember every single payroll step yourself and running the risk of missing a payment or falling out of compliance, even accidentally. 

If you’ve been feeling the need for help, check out Homebase Payroll.

Homebase offers an online payroll service that automates your payroll process and syncs automatically with your time tracking and scheduling. From converting your timesheets into hours and wages to automatically processing your tax filings, Homebase takes care of everything:

• Calculate wages and taxes and send out correct payments to employees, the state, and the IRS
• Automatically process your tax filings and issue 1099s and W-2s
• Store your time card records to help you stay compliant with FLSA record-keeping rules

With Homebase doing the heavy lifting for you, you can get back to growing your business and put your focus where it matters. Start for free today.

The post What is the Electronic Federal Tax Payment System? appeared first on Homebase.

Figuring out the number of work hours in a year can be a bit complicated. But as an employer, knowing this information inside out can help set your business up for success.

So, let’s do the math and find out.. And as a bonus, we’ll show you exactly how you can calculate those hours yourself.

What are work hours vs. non-work hours?

Work hours account for the time your team spends at your business—whether that’s in person, in the field, or virtually. This is the time that you’re paying your employees for.

On the other hand, non-work hours are times when employees are completely off the clock. This is the time that employees get to themselves. Days off are a perfect example of these. 

For the most part, the difference between the two is pretty straightforward. But there are some common situations where distinguishing between the two is a bit less clear-cut. Here are some common examples:

• Break times: Shorter breaks, like 15-minute stretches, are typically paid and considered work hours. But longer ones, like 30-minute lunch breaks, are typically considered non-work hours—assuming the employee is totally free from any work-related obligations.
• Commuting time: Generally, the time employees spend traveling to and from work isn’t considered a part of their work hours. But there are some exceptions, like employees who need to travel between different locations as part of their job. In these situations, there are usually clear guidelines around when employees are officially “on the clock.”
• Before or after-shift hours: Employees who come to work early or stay late who aren’t actively working typically don’t have that additional time counted as part of their work hours. Of course, there are always exceptions to the rules. For example, if a supervisor or manager approves those extra hours, they can officially turn into work hours.

Work hours for hourly employees vs. salaried employees

The biggest difference in work hours for hourly employees vs. salaried employees is how they get paid. 

Hourly employees are paid by the hour, so their pay goes up if they work more hours, and vice versa. This means in many situations their work hours can vary from week to week—especially if the employee schedule isn’t fixed. It’s why employee time clocking is important for hourly teams; it keeps an accurate record of hours worked.

In contrast, salaried employees are paid a fixed amount, regardless of how many hours they work. Their contracts typically outline the expected work hours a week—usually 35-40 hours for full-time employees. Because their wages don’t change, no matter how many hours they work, salaried employees aren’t often required to track their hours. (Although it can still be helpful!)

Why you should know how many work hours are in a year

Unless you’re a math whiz, calculating the number of work hours in a year can feel like a complete pain. Why bother?

(Gestures broadly to the list below)

• Managing labor costs: Your employee’s time—aka labor— is one of the biggest expenses for small businesses. By keeping a close eye on your labor costs, you’ll be able to make sure you’re staying on budget and not accidentally letting your employee wages run wild.
• Reviewing PTO: Paid time off (PTO) policies vary from business to business. Whether or not you have to offer PTO depends on your state and municipality. In general, accrued paid time off is determined by hours worked. So, you need to know how many hours your team works per year to accurately calculate PTO accrual for hourly employees.
• Meeting FLSA guidelines: The Fair Labor Standards Act (FLSA) doesn’t technically require you to calculate the work hours per year. But it does require you to keep a detailed record of all hours worked for at least three years. So if you’re staying compliant, you’ll only be a step or two away from knowing exactly the number of work hours in a year.
• Calculating employee taxes: Employee income taxes are calculated based on their wages earned in a calendar year, which for hourly employees is determined by the number of hours they’ve worked. In order to know how much income tax to deduct from their earnings, you need to how many hours an employee works in a given year.
• Preventing employee burnout: If you’re not tracking employee hours, it’s easy to end up with employees working way more hours than you expected. Not only can this put a dent in your business’s bottom line, but it can also lead to employee burnout—which has its own set of consequences.

How does PTO factor into work hours for the year?

From sick days to vacation time, these days off are usually collectively referred to as PTO. As the name suggests, these are hours that employees still get paid—even though they actually aren’t scheduled. 

PTO is often either included as part of a total compensation package or it’s accrued based on time worked. But here’s the catch: while employees get paid for PTO, the hours taken for PTO typically aren’t considered work hours.

This makes PTO a bit of a unique and complicated situation. So here are two things you should remember when considering PTO:

1. You should factor in the costs of PTO when budgeting your annual labor costs.
2. You shouldn’t include PTO in the total amount of time worked during the year.

5 steps to calculate work hours in the year

Many small business tools, like Homebase, can help you calculate your exact work hours for each year in just a few clicks. 

But if you like to keep things old school—or just want to know the math behind the magic—here’s how you calculate the average number of work hours in the year for your business.

1. Calculate weekly hours 

The first thing you want to do is calculate the average number of working hours in a week for all your employees. If you find the number of hours varies significantly, you can take an average of a month or even a quarter.

For most employees, full-time hours land somewhere between 35 and 40 hours a week.

Let’s say you have 3 full-time hourly employees working an average of 40 hours a week, your average weekly work hours will be 120.

2. Multiply by weeks in a year

There’s about 52 weeks in a year. So to get your total hours per year (before factoring in paid holidays or PTO), you simply multiply your weekly hours by 52.

For the 3 employees pulling 40 hours a week, your total hours per year will come to 6,240.

3. Calculate total public holidays

Public holidays are days when businesses are typically closed.

There are 11 federal public holidays that are observed in the US:

• New Year’s Day
• Martin Luther King Jr. Day
• Presidents Day
• Memorial Day
• Juneteenth
• Independence Day
• Labor Day
• Columbus Day
• Veterans Day
• Thanksgiving
• Christmas Day

If your employees are off for these holidays, you’ll need to remove them from your total annual hours. To calculate the total holidays for each employee, you’ll multiply the number of average hours worked per day by the number of holidays.

Let’s say your 3 employees were off on all 11 holidays. If they’re scheduled an average of 8 hours a day, you would have a total of 264 holiday hours.

Even if you’re closed, some businesses opt to offer employees holiday pay. This means employees would still get paid as if they were there a full day. There’s no requirement to provide employees with holiday pay but it can go a long way in keeping your employees happy.

Many service-based businesses stay open during public holidays. So depending on your location and industry, you might still need employees during a holiday. If employees are scheduled on a public holiday, you shouldn’t include those hours in this calculation.

4. Calculate additional time off

Now it’s time to calculate any additional time employees might take away from your business. 

If employees have PTO, this time away from can be paid. But when calculating the total number of hours worked for the year, you should also consider all time off—paid and unpaid.

Let’s say each of your 3 employees takes 5 days off during the calendar year. Assuming an average of 8 hours per day, you’ll have a total of 120 hours of time off.

5. Subtract total time off from total annual hours 

Finally, you’ll need to subtract the time off in both Step 4 and 5 from your total annual work hours in Step 2.

Following this example, your total work hours in the year for your business are 5,856.

6,240 – 264 – 120 = 5,856

Once you have your final total, you can use that number to help determine things like your labor costs and labor forecasts. 

Homebase makes calculating work hours for hourly employees easy

Homebase is the all-in-one employee management app that makes managing hourly teams easier than ever. From tracking hours worked to streamlining payroll, you can get take control of your labor costs—without the hassle.

Businesses that use Homebase enjoy:

• Simplified scheduling: Keep your hours in check with a free employee scheduling app that helps you build schedules in minutes while meeting your labor targets
• Easy time tracking: Stay on top of hours worked with a free time clock app that helps you and your team make the most of every minute.
• Painless PTO management: Set PTO policies, manage accruals, and approve time-off requests all from one app.

Ready to make calculating work hours a breeze?

No math required. Schedule your hourly teams and run payroll, all in one place. Get started with Homebase today.

The post Easy Ways To Calculate How Many Work Hours Are In a Year appeared first on Homebase.

Use this easy guide for handling overtime with ease with a breakdown of federal and state laws, overtime exemptions, and step-by-step calculations.

What is overtime?

Overtime is the term used to describe any extra hours that an employee works beyond their standard workweek. Unless exempt, employees covered by the Fair Labor Standards Act (FLSA) must receive additional pay for any hours worked beyond 40 in a workweek. This extra pay is known as “overtime” pay.

Small businesses might ask employees to work overtime to help with labor-intensive tasks like inventory or during busy seasons like the holidays. Offering overtime pay not only makes the idea of extra work a bit more appealing but also provides a tangible reward for their efforts.

What are federal overtime laws?

In the U.S., the Fair Labor Standards Act (FLSA) oversees federal overtime laws. It’s there to protect workers, outline rules for overtime pay and eligibility, and make sure those working over 40 hours a week get fair compensation.

While the FLSA’s regulations are extensive, the basic overtime guidelines include:

Standard overtime pay: Beyond the regular 40-hour workweek, eligible employees are entitled to at least 1.5 times their standard pay rate for additional hours worked. 

Minimum earnings: Anyone earning less than $684 per week or $35,658 annually automatically qualifies for overtime pay, regardless of other exemptions.

Record keeping requirements: Employers are required to maintain accurate records of hours worked, wages paid, and other relevant information to comply with overtime laws.

Who is exempt from overtime pay?

Despite these overtime laws, many Americans aren’t eligible to receive overtime pay based on their job duties, salary level, and the nature of their employment. Here’s an overview of who’s generally exempt from overtime pay:

White-collar exemptions

• Executive exemption: If you manage a business or department and regularly direct at least two full-time employees.
• Administrative exemption: If your work involves office or non-manual tasks related to business operations.
• Professional exemption: If you’re a learned professional or creative worker doing inventive or imaginative work.

Full-time salaried exemptions

As unfair as it may sound, full-time salaried employees are usually expected to do their job regardless of how many hours it takes. That’s because, unlike hourly employees, their pay is determined by their job duties rather than the hours they put in. But as you’ll see, there are a few exceptions to this rule.

Non-Exempt Employees

• Most hourly employees are entitled to overtime pay at 1.5 times their regular hourly rate for hours beyond 40 in a week.
• Certain salaried employees who don’t meet exempt status criteria are eligible for overtime pay. This includes those not meeting the minimum salary threshold of $35,658 annually.
  

Remember, overtime eligibility depends on the tasks employees do and how they’re paid, not just their job title. Labor laws vary by state, and employees can choose the rules (federal or state) that benefit them the most. To ensure you’re following overtime rules correctly, keep track of your team’s responsibilities and stay informed about federal and state labor regulations.

Overtime pay for hourly versus salaried employees

The way you calculate and structure overtime pay is different for hourly and non-exempt salaried employees. Here’s a brief overview of how overtime pay works for each.

Hourly employee

Hourly employees usually get 1.5 times their regular hourly rate when they work over 40 hours in a week. So if someone typically made $15 an hour, they would make $22.50 for each hour beyond the standard 40 hours. 

Salaried Non-Exempt Employees

Salaried employees receive a fixed salary for regular hours, but non-exempt salaried workers also get overtime pay for working over 40 hours a week. Since they aren’t paid hourly, you’ll have to do a bit more math to figure out their overtime rate, so let’s look at an example. 

Let’s say an employee has a weekly salary of $800 and is expected to work 40 hours. The regular hourly rate is calculated by dividing the weekly salary by the expected hours:

Regular Hourly Rate = Weekly Salary / Expected Hours

= $800 / 40

= $20 per hour

Then to find the overtime rate, you calculate one and a half times this regular hourly rate:

Overtime Rate = 1.5 * Regular Hourly Rate

= 1.5 * $20

= $30 per hour

So, if the employee works 45 hours in a week, they would receive their regular salary for the first 40 hours and then an additional $30 per hour for the 5 hours of overtime worked.

Keep in mind that most salaried employees aren’t eligible to receive overtime pay since they’re compensated for their job as a whole, rather than hourly. 

Overtime laws by state 

Navigating overtime regulations can be tricky, and varying state labor laws make that even more so. To ensure your business is on the right page, here’s a breakdown of overtime laws by state.

Alabama overtime laws

Alabama follows federal guidelines. 

Alaska overtime laws

In Alaska, overtime pay applies to non-exempt employees who work over 8 hours in a day or exceed 40 hours in a week. But, this doesn’t apply to employers with fewer than four employees and certain industries (like agriculture).

Arizona overtime laws

Arizona follows federal overtime rules. 

Arkansas overtime laws

Arkansas follows federal overtime rules.

California overtime laws

In California, employers are required to pay overtime to non-exempt employees for hours worked beyond:

• 8 hours in a workday
• 40 hours in a workweek
• 6 days in a workweek

California also has a double-time law, so employees get double their hourly rate for working more than 8 hours on the seventh day in a row and/or beyond 12 hours in a day.

Colorado overtime laws

In Colorado, employers provide overtime pay to non-exempt employees for working beyond 12 hours in a day or 40 hours in a workweek.

Connecticut overtime laws

Connecticut follows federal overtime guidelines.

Delaware overtime laws

Delaware follows federal overtime rules. 

Florida overtime laws

Florida follows federal overtime regulations.

Georgia overtime laws

Georgia follows FLSA guidelines.

Hawaii overtime laws

Hawaii follows federal overtime laws with some exceptions.

Idaho overtime laws

Idaho follows FLSA guidelines.

Illinois overtime laws

Illinois follows FLSA rules.

Indiana overtime laws

Indiana’s overtime rules align with FLSA guidelines.

Iowa overtime laws

Iowa follows federal overtime rules. 

Kansas overtime laws

In Kansas, employers must pay overtime for hours worked beyond 46 in a workweek. But, if your business is covered by the federal Fair Labor Standards Act (which mandates overtime for hours beyond 40), follow those guidelines.

Kentucky overtime laws

Kentucky follows FLSA overtime guidelines.

Louisiana overtime laws

Louisiana follows FLSA overtime rules.

Maine overtime laws

Maine follows federal guidelines for overtime, but employees must earn more than $41,401 annually (rather than the federal threshold of $35,568) to be exempt. 

Maryland overtime laws

Maryland follows state guidelines, but certain occupations have their own overtime rules. For instance, some farm workers are eligible for overtime pay when working beyond 60 hours in a week.

Massachusetts overtime laws

Massachusetts follows federal overtime laws with one exception. If businesses pay employees 1.5 times their regular pay for working on a Sunday or certain holidays, those hours don’t count towards the calculation of overtime.

Michigan overtime laws

Michigan overtime laws mirror FLSA guidelines, but they only apply to businesses with two or more employees. 

Minnesota overtime laws

In Minnesota, state overtime laws kick in for hours worked beyond 48 in a workweek. But if your business is covered by the federal FLSA, it’s better to stick to the federal overtime rules (40 hours).

Mississippi overtime laws

Mississippi follows federal overtime laws. 

Missouri overtime laws

Missouri follows federal overtime guidelines.

Montana overtime laws

Montana follows FLSA overtime laws.

Nebraska overtime laws

Nebraska follows federal overtime guidelines.

Nevada overtime laws

Nevada employers must pay overtime if employees work over 40 hours in a week or 8 hours in a day. However, this only applies if the employee earns less than 1.5 times the minimum wage per hour and is not valid if the employee agreed to work multiple 10-hour shifts in a week. 

New Hampshire overtime laws

The state of New Hampshire follows the FLSA guidelines.

New Jersey overtime laws

The overtime laws in New Jersey align with FLSA guidelines.

New Mexico overtime laws

The state of New Mexico follows FLSA guidelines.

New York overtime laws

In line with FLSA guidelines, New Yorkers are entitled to overtime pay for working beyond 40 hours a week. But New York’s rules extend beyond federal exemptions, so most employees are eligible for overtime pay (with some exceptions).

North Carolina overtime laws

The North Carolina Wage and Hour Act aligns with FLSA guidelines.

North Dakota overtime laws

North Dakota upholds federal overtime law.

Ohio overtime laws

Ohio adheres to FLSA guidelines.

Oklahoma overtime laws

Oklahoma defers to federal overtime laws. 

Oregon overtime laws

While Oregon’s state overtime laws align with federal laws, specific sectors like government agencies have their own overtime rules.

Pennsylvania overtime laws

Pennsylvania’s overtime law conforms with federal overtime guidelines. 

Rhode Island overtime laws

Rhode Island upholds the FLSA overtime payment guidelines.

South Carolina overtime laws

Similar to North Carolina, South Carolina follows federal overtime laws.

South Dakota overtime laws

South Dakota complies with federal overtime law.

Tennessee overtime laws

Tennessee follows the federal overtime laws outlined in the FLSA. abides by federal overtime laws.

Texas overtime laws

Texas’s overtime law mirrors FLSA guidelines.

Utah overtime laws

Utah follows FLSA guidelines.

Vermont overtime laws

Vermont’s overtime laws closely mirror FLSA guidelines, but only apply to employers with two or more employees.

Virginia overtime laws

Despite passing the Virginia Overtime Wage Act in 2021, it was rolled back less than a year later to realign with federal FLSA guidelines. 

Washington overtime laws

Washington’s overtime laws align with federal rules with a few exceptions. Employers in Washington can’t require registered or licensed practical nurses to work overtime and double-time pay may be required for certain public works projects.

West Virginia overtime laws

Most West Virginia companies follow federal rules, but they can qualify for supplementary state overtime benefits if they meet three criteria:

• They don’t qualify for federal enterprise coverage.
• Most of their employees wouldn’t qualify for overtime under federal law.
• They have at least six employees.

If all three criteria are met, employees can receive 1.5 times their usual pay for overtime. For those working two jobs, overtime is calculated using the higher-paying job. For example, if someone works at a restaurant for $12/hr and a shop for $15/hr, their overtime pay rate would be $15/hr. 

Wisconsin overtime laws

Wisconsin adheres to federal overtime laws.

Wyoming overtime laws

Wyoming enforces federal overtime laws. 

Manage overtime with ease

If you’ve made it this far, you might be feeling a bit overwhelmed, which is completely valid. Navigating labor laws and handling overtime for your team is no small feat. Even a minor slip-up could have significant consequences, so attempting to manage it on your own (especially manually) isn’t worth the risk.

Enter Homebase–your ally in simplifying the complexities of labor compliance. Through real-time reporting and automated time tracking, Homebase delivers up-to-the-minute insights into employee hours, overtime, and labor costs. You can even set up specific break and overtime rules, create alerts to notify you when members of your team are reaching their overtime threshold, and store time cards in Homebase to comply with FLSA record-keeping rules. 

Still worried about those pesky overtime calculations? Homebase has you covered. With seamless payroll integrations, you can automatically add overtime pay to your team’s paychecks—no calculations required. 

At Homebase, we know small business owners have enough on their plate without keeping up with evolving labor regulations, so we’ll automatically send you labor law compliance notices to alert you of any upcoming changes. And, for added peace of mind, we have certified HR Pros on hand to review your payroll and overtime policies.

Don’t ruin another night’s sleep worrying about overtime logistics. Stay on top of it with Homebase scheduling and timesheets. Try for free.

The post Overtime Laws by State From Coast to Coast appeared first on Homebase.

This article will explain what the CP-575 form is, why it’s important, and how you can get one for your business. 

What is an Employer Identification Number (EIN)? 

An Employer Identification Number (EIN), also sometimes referred to as a Federal Employer Identification Number (FEIN), is a unique nine-digit number that the IRS assigns to a business entity that allows them to operate within the United States. 

An EIN is what the IRS uses to identify a business for tax purposes—similar to how a social insurance number works for individuals. It’s typically a permanent number that’s assigned to a business, and it doesn’t need to be renewed. Think of it as the first key step in starting a business in the United States, making you IRS-official in the eyes of the government. 

Any business that meets the following specs will likely need an EIN number: 

• You have employees
• You operate a business as a corporation or partnerships
• You fill employee, excise, or alcohol, tobacco and firearms tax returns 
• You withhold taxes on incomes
• You’re involved with certain types of organization, such as trust, estates, and non-profit organizations 
• Purchase or inherit a business
• Start a multi-member limited liability company 
• Own a business entity that’s taxed as a corporation 
• Change the structure or ownership of your business 

While many businesses will need an EIN, it may not be necessary for solo operations or simple businesses. If you’re not sure whether you need an EIN number, head over to the IRS website to make sure.

With an EIN in hand, you can do all of those things that make your business, well, a business. 

That includes: 

• Filing your business taxes
• Applying for a business loan
• Opening a business checking account
• Building business credit and hiring employees 

Okay, so we’ve talked about what an EIN is. But where does a CP-575 form come into the mix? Let’s dig into that now.

What is an IRS form CP-575? 

An IRS form CP-575 is a notice from the Internal Revenue service. It confirms you’ve been granted an EIN, and the information that you’ve submitted about your business to the government.

The CP-575 form, sometimes called an EIN confirmation letter, includes important information about your small business, including: 

• Your Employer Identification Number (EIN)
• Your business name
• Your business’s official filing address
• A list of federal tax forms that your company is required to file 

The CP-575 is primarily a document for business entities structured as corporations or partnerships. Most sole proprietors likely don’t need an EIN (and therefore a CP-575 form) because they’ll use their Social Security (SS) number instead for filing tax returns and other business operations. 

The exception to that would be if the sole proprietor ticks any of the boxes in the previous section. When in doubt, always consult the IRS website. 

If you need to apply for EIN, and receive your CP-575 form, make sure you keep it somewhere safe. The IRS will only ever send you one of these forms. Treat it like your passport or birth certificate. 

What is the purpose of the IRS CP-575 form?

The main purpose of the IRS CP-575 form is that it serves as proof for all of the important details about your business that you’ll need for taxes, banking, and compliance purposes. That includes showing proof of your EIN, business name, filing address, and more. 

We mentioned passports and birth certificates in the last section. This is a good analogy for the role that a CP-575 form will play in your business. It’s an official document that shows proof of your business’s origin, and specific details and who you are, and what you’re entitled to under United States law. 

Just like you can’t get a passport without a birth certificate, or travel internationally without a passport, you can’t do a lot of important business things without a CP-575 form. 

That includes: 

• Opening a business account
• Getting a business credit card
• Getting payroll setup with your patrol provider
• Securing a Medicare provider
• Communicating with certain government organizations 

Just like a passport or birth certificate, you don’t need a CP-575 form for all business tasks. Often you can complete simple administrative and financial tasks just by providing the EIN. But, many organizations may still require that you submit a CP-575 form as proof that the EIN is yours. 

Because of that—and just to emphasize the importance of this form—it’s really important that you keep your CP-575 record safe, secure, and accessible. 

EIN confirmation letter vs. CP-575 form: what’s the difference? 

When navigating the world of tax returns and banking applications, you may hear the terms “EIN confirmation letter” or “CP-575 form” thrown around a lot. Don’t get confused. These are different names for the exact same form. 

EIN confirmation letter and CP-575 form or synonyms that refer to the exact same document. Specifically, an official document from the IRS that confirms the issuance of an EIN, and the information related to it. 

How to get a CP-575 letter for your business

Getting a CP-575 form starts with applying for an EIN. And that starts by visiting the IRS website to learn about the different ways to apply. 

The easiest method is by using the online application portal. But, you can also apply by fax, by mail, and over the phone (that last one is only available for international applications). In all cases, this is a free service that’s available to all applications. 

Before getting started, we encourage you to read up on the eligibility requirements and time considerations for the EIN application to ensure that you’re filing the right documentation. Now that you’re homework is done, start working through the application process below (for online applications). 

Steps for getting your paperwork complete

• Visit the IRS website and click on the button that says “Apply Online Now” 
• Work through the online prompts to submit all relevant information related to your business. This will include:
  • Declaring your business entity’s legal and tax structure. Options include:
    • Trust 
    • Estate
    • LLC
    • Corporation
    • Partnership
    • Sole proprietor 
• Provide information about other members in your business if you operation as an LLC or partnership 
• Explain why you’re requesting an EIN. Options include:
  • Purchased an active business
  • Changed the type of your organization
  • Banking purposes
  • Hired employees
  • Started a new business
• Identify the responsible party for your business, including their Social Security and Tax Identification numbers. 
  • This is a  contact person who you will make responsible for handling the business’ tax matters.
• Provide a physical address and phone number for your business 
• Provide important details about your business entity, including:
  • Name
  • Trade name
  • Start data
• Answer a series of tax-related questions about your business
• Choose an applicable business categories from a pre-built list of categories
• Choose how you want to receive your CP-575 form for confirmation  
• Submit the application and wait for your confirmation form

Final steps to complete your paperwork 

For businesses applying by phone or fax, you can complete Form SS-4 independently and send it directly to the IRS for processing. Once your form is received, the IRS reviews—and hopefully approves—your EIN application if everything is in order. Then, sit back and relax until your CP-575 form arrives in the mail within about four to six weeks of approval. 

The post What is a CP-575 Form? Explanation, Importance, and Uses appeared first on Homebase.

Fortunately, figuring out the legal side of being an employer isn’t as complicated as it might seem. Once you get the hang of it, following those rules will feel like second nature. 

Ready to explore the world of California employer rights and responsibilities? Let’s dive right in.

What are employer rights and responsibilities? 

Employer rights are a series of rules and regulations that protect businesses that employ workers. The goal of employer rights is to help businesses grow while being able to safely hire employees to support their goals. Employer rights often cover things like the right to hire the employees you want and to create company policies that best fit your business needs.

On the flip side, employers also have responsibilities to their employees. While most employers want the best for their employees, it’s unfortunately not uncommon for businesses to put their employees on the back burner—even though it’s been proven to impact productivity and business success. Employee rights are created to make sure employees can have a safe and successful work experience.

Why is understanding employer rights important

All the extra rules and red tape might feel like a pain—but ultimately, they are designed to protect you and your employees. Employers that prioritize their employer rights and responsibilities benefit from:

• • Better business decisions: Your rights can help you make informed decisions around hiring and managing your employees.
  • Increased employee happiness: Staying on top of your responsibilities as a business helps build trust with your employees, making them happier and more engaged with their work.
  • Stronger employer brand: Being known as a company that creates a safe and positive work environment can help you attract employees and customers. 
  • Protection from liability: Employer rights provide clear-cut guidance for what employers are and aren’t allowed to do, protecting you and your business in the event of a legal dispute.
  • Legal compliance: Your responsibilities as an employer aren’t optional and workplace violations can cost you. Even accidentally violating labor laws can result in hefty fines, lawsuits, or even jail time.

Ultimately, understanding your rights and responsibilities empowers you to make decisions that are best for your business while making sure your employees are taken care of. 

What are the 10 employer rights and responsibilities in California?

Labor laws vary from state to state, which is why it’s important to understand which rules apply to your business. 

Here are some of the rights and responsibilities that employers should be aware of in California.

1. Right to minimum wage

Employers in California have the right to determine how much they pay their employees. With one caveat: they must meet the minimum wage requirements. 

The Fair Labor Standards Act (FLSA) has minimum wage requirements that cover employers across the U.S. However, states like California have higher minimum wage requirements that supersede the FLSA minimum wage rules. 

California’s minimum wage for all employers, regardless of size, is $15.50 per hour. Certain local jurisdictions have higher minimum wages, such as Sunnyvale with a minimum wage of $17.95. There are also different wage rules based the number of employees you have.

Salaried employees who are exempt from hourly rules are also entitled to a minimum salary

2. Right to breaks

As an employer, you have the right to have employees on shift who are performing at their best. But to help employees do that, they also have the right to breaks during the work day.

In California, employees are entitled to take a 10-minute paid rest period during each four-hour shift. If an employee works a shift that’s less than 3.5 hours, a break is not required by law.

For shifts longer than five hours, you’re required to provide a meal break of 30-minutes or longer. In California, the meal break is unpaid if your employee has no work-related responsibilities and is allowed to leave. But if you need them to stay on-site or if they’re required to be available to work during their break, you’ll have to include them as working hours and pay them.

Employees who are working shifts that are 12 hours or longer as also allowed additional breaks by law.

3. Right to paid time off sick leave

Another way to help your team stay in top shape? Giving them time to rest and recuperate when they’re not feeling well. 

As of January 1st, 2024, California requires employers to provide full-time employees with 40 hours of paid sick leave every year—or five days. This is up from the three days previously required.

You can provide all hours together as a lump sum. Or you can choose to have your employees accrue their sick hours based on the hours worked.

Employers in California are not required to provide vacation time. However, employers are allowed to combine sick days with other paid time off policies, as long as employees are provided with the minimum time off to be used as sick days.

4. Right to employ minors

Those summer and high school jobs are where memories are made. But hiring minors is a little more complicated than a kid walking right into their neighborhood store as they might lead you to believe in the movies. 

In California, employers do have the right to hire minors. But there are some things you want to keep in mind if you do so:

• Anyone under the age of 18 must have a permit to work.
• Minors who are 12 or 13 years of age can only during days off of school or summer holidays. No after-school shifts are allowed.
• Certain industries and positions are off-limits to 15 years old and under, like those that operate machinery.
• The Code of Federal Regulations also states that minors can’t work jobs that are deemed hazardous.

So while many employers are hesitant to discuss age due to concerns of discrimination, it’s important to understand the age of minors on your payroll. But speaking of discrimination…

5. Right to protection from workplace discrimination

Employers have a responsibility to protect employees from workplace discrimination. Practicing workplace diversity and inclusion isn’t just best practice, it’s the law.

Everyone deserves—and has the right to—a workplace that’s free of discrimination and harassment. So you have to create policies that prevent those situations from occurring. Not only does this include how you treat current and potential employees, but also interactions between employees. 

According to the California State Senate, protected classes include, but aren’t limited to:

• Race or color
• Age
• Sex, gender identity, or sexual orientation
• Marital status
• Physical or mental disability
• Medical status

6. Right to overtime pay

In California, employers have the right to ask employees to work overtime. But non-exempt employees in California, and any other state, are entitled to overtime pay. 

The FLSA defines overtime as any hours worked over 40 hours a week. So any time employees work over 40 hours a week, you’ll need to pay those extra hours at 1.5x their regular hourly wage.

7. Right to family and medical leave

Under the Family and Medical Leave Act (FMLA) and the California Family Rights Act (CFRA), employees in California are entitled to take time away from work to take care of family and loved ones. The leave doesn’t have to be paid but you have to allow employees on eligible leave to return to their job without any consequences or repercussions.

The FMLA and CFRA are similar laws and cover things like personal health concerns, health concerns with family members, and welcoming a new child to the family. They both require employees to have worked 1,250 hours in the past 12 months for their employer before being eligible for leave. 

The biggest difference is the number of employees before the laws come into effect. The FMLA only applies to companies larger than 50 employees. But in California, the CRFA applies to any employer with 5 or more employees, so if you’re in California, you’ll need to default to the rules of the latter.

8. Right to protection from wrongful termination

No one wants to lay off or fire an employee, but sometimes it needs to happen. Business needs can change over time or the employee-employer relationship might just not be working out. That’s why in California, employers have the right to terminate at-will employees. 

But employees are protected from wrongful termination—AKA they can’t be fired for an illegal or unlawful reason. Common of examples of wrongful termination include discrimination, retaliation, or employer contract violations.

9. Right to correct employee classification

In California, different classifications of employees have different rights. For example, independent contractors typically aren’t eligible for sick days and salaried employees usually don’t qualify for overtime.

And while employers have the right to hire for the types of roles that support their business goals, you can’t skirt the rules by classifying employees incorrectly. And California Assembly Bill 5 (AB5) is one way that California is making triple sure of that. Federally, the FLSA also has rules around what types of employees can be classified as salaried and exempt from things like overtime.

The goal of making sure employees are classified correctly is to make sure that they’re getting the benefits they’re entitled to. 

10. Right to safe working conditions

Employers in California legally have the responsibility to keep their employees safe in the workplace. While this seems obvious, workplace accidents and injuries are surprisingly common, with over 2.8 million injury and illness cases in the U.S. in 2022.

How you keep your employees safe can vary depending on your industry and type of business. But generally, this includes things like having workplace safety policies, providing necessary safety equipment, and properly reporting accidents or injuries.

California employer rights laws and legislation 

There are many federal laws that employers need to follow. But states also have the flexibility to enact labor laws. California is one state that has several legislations that impact employers. Two laws that small businesses in California should be aware of? CFRA and AB5.

What is the California Family Rights Act (CFRA)? 

The California Family Rights Act generally allows employees to take time off for health and family-related reasons. This time off is unpaid but CFRA protects their job, so employees can step back into the same role and compensation at the end of their leave.

The CFRA has been in effect since 1983. However, like most laws, this one has been updated over the years to include new rules that impact both employees and employers. Most recently, it was expanded in January of 2021 and 2022 to cover additional employers and employees.

Here’s the gist of the CRFA as of 2024:

• The CFRA covers employers with 5 or more employees.
• Eligible employees can take up to 12 weeks of CFRA leave.
• CFRA leave can be used to care for an employee’s own serious medical condition, the serious medical condition of a family member, or to bond with a new child.

What is the California Assembly Bill 5 (AB5)

California Assembly Bill 5 (AB5)—AKA the gig worker law—requires employers to classify gig workers as employees rather than just independent contractors. AB5 went into effect on January 1, 2020. 

AB5 requires companies to treat workers as employees and issue W-2s unless they meet all three of the following requirements—also known as the ABC test. Here’s the gist:

1. The worker’s work and performance aren’t under the control of the company.
2. The worker’s work isn’t part of the core service or product of the company.
3. The worker regularly does similar work independently.

California AB5 helps protect workers by providing them with the right tax documents as well as making them eligible for benefits like sick days and insurance.

Implications of California employer rights for business owners and employees

But most importantly? Following the rules isn’t just the law. By keeping on top of your employer rights and responsibilities, you can create long-lasting business success while providing a positive work experience for your team.

And we get it—laws and legislation can certainly be complicated to decipher. But at the end of the day, these rules exist to protect your business and your employees. They aren’t always perfect—and can feel inconvenient at times—but these laws will continue to be updated to make sure that you and and employees are supported as much as possible. 

Want to make staying compliant simple?

Homebase’s all-in-one employee management app helps you skip the stress and stay on top of labor laws in your region. From getting tracking employee time to getting help from HR experts, Homebase does it all. Get started today.

The post Understanding Employer Rights and Responsibilities in California appeared first on Homebase.

The Fair Labor Standards Act (FLSA), administrated by the Department of Labor, sets hour restrictions for 14 & 15-year-olds, with 14 being the minimum minor age for children and teens that are looking to work. The employer should seek proof of age when hiring a minor.

This can include a driver’s license or any other document stating their date of birth, such as a birth certificate. Some regulations require that minors have specific work experience, possession of different employment certificates, or completion of similar training programs.

Although the FLSA has not set restrictions for 16 & 17-year-olds, over half of the states have the number of hours, meal breaks, type of work, minimum wage, hazardous occupations, or rest period state laws specific to minors, while some require work permits. There are some exemptions to this law, including years of age for some jobs, jobs with minor’s parents, minor employees that do agricultural work, so be sure to check your local child labor laws. Read more about FLSA work restrictions for minors here.

FLSA Work Hour Restrictions for Minor Employment

The FLSA also regulates which types of occupations minors can have.  Minors are prohibited from working in dangerous fields like in a plant, with heavy machinery, driving motor vehicles, or fire fighting.  Most administrative jobs pass the test, but for the restaurant industry, it may be more difficult to employ a minor in a back-of-the-house position.

Below, find a summary of the types of restaurant positions the FLSA regulates for minors. Check your local laws, as many states have their own restrictions that apply to minors in addition to the FLSA.

Hiring Minors to Work in a Restaurant

For many minors, this is their first real experience in the transition from childhood to adulthood. Remember the lessons you learned in your first job? I learned the basics, like the importance of being on time, and how much hard work was required to earn my paycheck. Because it may be their first position, a little extra coaching and development set up your employee for success.  

Dealing With Conflict and Parents

Sometimes, when employing minors, their mothers may try to intervene. Remember, most of these young adults still live with and answer to their parents. It is not uncommon to get a phone call from an irate mother fuming about a situation they heard from their child that may not even be true. I have received many phone calls from upset moms asking why the manager fired her child.  

The real story is that sweet Tommy stopped showing up for work over a month ago or was caught using drugs in the bathroom. Unless the mother is referencing illegal harassment or illegal working conditions, be polite, but remember your relationship is with the employee and not their parent. The employee is expected to behave as any other professional employee and solve their problems directly with the human resources department. 

Scheduling Works Shifts for Minors

Scheduling around school schedules, sports matches, extracurricular activities, social events, and everything else teens are doing can be tricky, especially when those commitments don’t necessarily repeat consistently. That’s where Homebase can help.

With Homebase, you don’t need to worry about last-minute schedule changes. You can have all your employees add their schedule availability in advance, even if their availability changes week to week. Then, when you’re building the schedule, you’ll be able to see at a glance who can work which shifts.

And, if something comes up after you’ve published the schedule — like a soccer game — they can easily trade shifts with a coworker on the Homebase mobile app (with your approval).

With these tips and tricks in mind, employing minors should be a breeze. However, if you have more HR and compliance questions, Homebase gives you live access to HR experts who can answer any question you may have. 

The post Minor Employment Laws: The Dos and Don’ts of Employing Minors appeared first on Homebase.

But if you have a busy week, you may struggle to adequately staff your business while respecting each team member’s preferences.

And using overtime isn’t a sustainable strategy. Sure, occasional emergencies and one-off events might get absorbed into your labor budget. But if you rely on overtime every week to cover shifts, the increased labor costs will overtake your profits.

Comp time is a way to solve these problems in one move. By offering days off in exchange for overtime, you can avoid paying overtime rates, adequately cover every shift, and encourage your team to work more hours.

As comp time is a complex topic, we’re covering all the guidelines you need to be aware of before you start using it. Our article explores:

• Whether comp time is always legal
• Which staff are eligible
• How to calculate comp time
• How to set up comp time for your business

What is Comp Time?

Comp time (otherwise known as compensatory time off) is the practice of offering employees additional paid time off in exchange for working beyond their normal hours. This PTO is instead of standard overtime pay.

That way you can reward employees for taking more shifts and ensure full shift coverage while reducing overtime.

Offering comp time can also improve morale and increase retention rates. Employees may struggle to pack vacations and personal commitments into PTO or find they need more days off after they’ve used all their allotted vacation. Comp time gives your team more control and flexibility over working hours so they can manage time off better.

In some cases, comp time helps you hang onto staff. For example, students can save days off for exam season instead of handing in their notice.

Is Comp Time Legal?

Comp time is legal according to US federal law but there are many rules and restrictions. The Fair Labor Standards Act (FLSA) states that:

• Employees must agree to the arrangement
• They have to use the time off they accrue within the same pay period
• Employers must also honor comp time once they make the agreement
• They must also pay unused comp time if it expires
• Comp time can’t exceed 240 hours per year (except for some healthcare and emergency service workers who can take 480)
• The minimum rate is 1.5 hours of comp time per hour of overtime

The laws on comp time also vary between states. For example, Alaska has banned this practice outright and California only allows it for a few cases.

Check your state’s Department of Labor (DOL) website for the most up-to-date regulations on comp time in your area.

Who’s Eligible for Comp Time?

The main rules and regulations surrounding comp time concern different types of workers. So, let’s identify the different categories and which rules apply to each.

Comp Time for Exempt vs Non-Exempt Employees

Before we delve in, let’s clarify the difference between exempt and nonexempt employees. Think of ‘exempt’ as ‘exempt from overtime pay.’ So, exempt employees can’t earn more money by working extra hours whereas nonexempt employees can.

Note: Exempt doesn’t always mean salaried. If salaried staff have executive, administrative, or professional roles, and earn less than $684 a week, they count as exempt.

The rules are generally as follows:

• Exempt employees are eligible for comp time if overtime is mandatory at their company.
• Nonexempt employees may receive comp time depending on their sector, local labor laws, and how they get paid.

Comp Time for Hourly and Salaried Employees

Salaried workers have fixed schedules and pay so they aren’t usually eligible for comp time. The idea is that employers shouldn’t make teams work beyond the hours in their contracts.

But businesses with salaried employees can have an informal arrangement where, for example, bosses give everyone Friday off for working extra hours on a project.

And, as we’ve noted, nonexempt salaried staff are an exception.

On the other hand, hourly employees don’t have fixed schedules and their pay directly corresponds to the amount of time they work. If workers exceed their regular hours, the law states that employers must pay them overtime. These businesses can’t implement comp time unless:

• Local labor laws allow it
• There’s an agreement with the workers’ union
• Employees work in specific public sector roles (which we outline below)

Comp Time for Private and Public Sector Employees

Some public sector roles are eligible for comp time because they involve working long, irregular hours. This includes the following industries:

• Social services
• Healthcare
• First responders
• Law enforcement
• Public works
• Government agencies

It’s worth noting that employees who work for privately owned businesses in the same industries may be ineligible. If you run a private clinic, for example, you can’t offer your nurses comp time just because they work in healthcare.

In fact, most private sector employees don’t count for comp time unless the local labor laws say otherwise.

So, if you’ve ruled out all the other scenarios where your staff may be eligible for comp time, check your state rules and regulations. Make sure your information is up to date and applies to your industry.

There are also consulting services like Homebase’s team of HR professionals which can offer you guidance on business policies like this.

What if My Employee Isn’t Eligible for Comp Time?

Perhaps you’ve gone through the sections above only to discover that your team isn’t eligible for comp time. But there are other ways to manage time off more effectively and give staff more flexibility over their schedules. Here are some of the most popular ideas:

• Flexi-time: If your business doesn’t require employees to work set hours, you can let them decide their own schedules. That way they can fit in commitments like childcare and studies without the need to take days off.
• Remote work: Another way to solve the issue of family care is to let staff work from home. That’s on the proviso that their personal lives don’t interfere with their professional responsibilities.
• Seasonal and temporary work: Some employees need long periods off. For instance, parents can’t always work during the summer holidays and retirees may relocate for the winter. Offering temporary contracts allows these team members to take as many days off as they need.
• Company-wide time off: During certain festivals, your business may slow down. You can save operational costs and spare employees from using their PTO by closing for these days.
• Personal days: Staff might find they’ve taken all their PTO when they suddenly get hit with legal obligations, transport problems, or home emergencies. Offering personal days helps them save time for vacation and unforeseen circumstances.
• Self-scheduling: Letting your staff arrange their own swaps and covers gives them more control over their hours. Apps like Homebase have scheduling and chat features to help your teams coordinate and approve shift changes.

How Do I Calculate Comp Time?

If you discovered your employees are eligible for comp time, let’s look at how to calculate their extra PTO.

First, check the local laws to see if they set a minimum rate. The standard rule is that staff get one hour of comp time per extra hour worked. So, if Mal usually works 15 hours but agrees to stay two hours later on Tuesday evening, you’d get:

But if an employee works more than 40 hours in a week, they’re into overtime and you change their comp time accordingly. This is often at a minimum rate of 1.5 for each hour of overtime. Let’s say Lena works a 40-hour week but stays 4 hours late on Sunday, now you’d get:

But what happens if staff don’t normally work 40 hours but their extra hours take them into overtime? Now, you would have to apply different rates. Imagine Ace does 30 hours a week but picks up 15 hours of extra shifts one week for comp time. You calculate:

On looking at these calculations, you may decide you need labor more than you need to reduce overtime pay. For example, maybe you can’t afford to lose Ace for 17.5 hours later in the month.

If team members don’t use their comp time before it expires, you simply reverse these calculations and add these hours to your payroll as you would ordinarily.

How Do I Set Up Comp Time for My Employees?

Once you’ve checked your employee’s eligibility for comp time, and seen whether the rates above suit your business, you’re good to go.

Now to set up comp time policies for your business and introduce them to your staff. We’ve listed the essential steps below.

• Review labor laws and regulations: That means going beyond eligibility. For instance: What is the minimum overtime rate? Do you need to obtain written consent?
• Decide who’s eligible: If you have different types of workers, you may want to keep matters simple and only offer comp time to full-timers. Scheduling may become overly complicated and time-consuming if part-time employees keep moving around their shifts.
• Determine an accrual rate. As we’ve discussed, you have to comply with the state minimum. But maybe you want to offer a more generous rate to encourage employees to take extra shifts. Say, there’s a one-off event your team all hates working, you could offer two hours of comp time per hour worked to reward them.
• Set accumulation limits: You may struggle to staff your business if all your staff take comp time during busy periods. In that case, restrict how much they can take and use in a month to suit your labor demands.

• Develop a policy: With all the above figured out, write a policy. Homebase’s HR professionals can help you draft one that suits your specific needs and preferences while staying compliant.

• Explain the policy: Make sure employees are aware of and understand the policy. You can announce the changes via your team chat, hold a meeting to discuss the rules, and add the policy to your handbook.

• Train managers: As managers may oversee comp time shifts, let them know what to expect. If you’ve previously told them to send employees home when they approach overtime, they may find the changes confusing.

• Track comp time: You can lose track of hours if you don’t record them properly. Have teams track comp time on their time clock to ensure mistakes don’t lead to them getting under or overpaid.

• Review: Teams change and so do their priorities. They may find comp time doesn’t suit them anymore and stop using it after a while. Keep checking how much staff use it and consider tweaking your policy if they’ve lost interest.

Compensatory Time Off: Key Takeaways

When you come across a policy like comp time that benefits you and your team, no doubt you want to take advantage of it.

Because let’s face it, you don’t want to assign staff long hours or undesirable shifts any more than employees want to take them. And comp time is a way to incentivize staff to take these hours without going over your labor budget.

But navigating the labor laws surrounding comp time can be a challenge. That’s especially when you already have a business to run and can’t spend hours researching rules and regulations.

There’s no need to tackle new business policies alone, though. Homebase has compliance features that:

• Update you on changing labor laws related to comp time
• Advise you on whether your team is eligible for this practice
• Help you draft a comp time policy and add it to your handbook

That way you can easily introduce comp time to your business without worrying about incurring heavy fines or disrupting your business flow.

Remember, this is not official legal advice. If you have any concerns, it’s best to consult an employment lawyer.

The post Comp Time: What It is, Who Qualifies, & How to Calculate It appeared first on Homebase.