Four Things to Know About Payroll Processing in Texas

A reputable Texas payroll company can process your payroll without delay and without the risk of running afoul of regulations. When it comes to processing your payroll, the following are some things you need to know about.

1. Exempt / Nonexempt Status. Under the Fair Labor Standards Act (FLSA), employers are required to pay overtime to nonexempt employees. If nonexempt workers work more than 40 hours per week, their hours and wage rate must be thoroughly documented in the payroll. In Texas, companies must also provide overtime to exempt employees if their salary is less than $455 per week, and if the employee performs administrative, executive, or professional services as defined under FLSA exemptions.
2. New Hire Documentation. W-4's and documentation showing legal work status are essential. Companies that hire and employ workers without the legal right to work in the US can face fines and penalties.
3. Record Keeping. The FLSA requires companies to maintain most payroll records for three years after the date of payment. In Texas, employers must maintain these records for four years to comply with the state's unemployment compensation statutes.
4. Texas PayDay Law. This complicated law prevents extraneous deductions from employee paychecks. It also sets requirements regarding how deductions, such as healthcare and wage garnishments for child support, etc., are to be handled. The law also defines how these deductions must be listed and accounted for by the payroll company processing the payment.

Hiring Aloha Payroll, based in Houston, ensures that your documentation will always be in order and that your payments are made in compliance with the most current Texas regulations. Most importantly, our staff will free up your time so that you can focus on building and growing your business without having to expend valuable time and resources on this regular chore.