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Q: If I pay my employee with a check, is that all that is required of me as an employer?

Alex Cha Law Office > News  > Q: If I pay my employee with a check, is that all that is required of me as an employer?

Q: If I pay my employee with a check, is that all that is required of me as an employer?

Q: If I pay my employee with a check, is that all that is required of me as an employer?

A: Whether you are starting a new business or have been  for a long time, you must comply with the many employment and labor laws in order to avoid serious legal consequences. One of the requirements is that you provide a pay-stub to each employee with each paycheck. It is a good idea to utilize an accountant or payroll company to handle the payroll and make the proper deductions and with-holdings. Along with each paycheck, California law (Labor Code Section 226) requires employers provide a written itemized statement containing nine pieces of information about that payment:

1) Gross wages earned;
2) Total hours worked (except salaried exempt employees);
3) Piece rate units and rate, if applicable;
4) All deductions, including taxes, disability insurance, and health and welfare payments (deductions ordered by the employee may be aggregated and shown as one item);
5) Net wages earned;
6) The inclusive dates of the pay period;
7) The name of the employee along with his or her social security number (last four digits only) or an employee identification number;
8) The name and address of the legal employing entity; and
9) All applicable hourly rates in effect during the pay period and the corresponding number of hours worked at each hourly rate by the employee.

Example of an itemized wage statement (pay stub) http://www.dir.ca.gov/dlse/PayStub.pdf

These payroll laws are intended to prevent workers from being cheated on their pay.  Intentional failure to provide this payroll stub data entitles the employee to recover all actual damages or up to $50 for the initial pay period in which a violation occurs and $100 per employee for each violation in a subsequent pay period, up to a total of $4,000, plus costs and reasonable attorney’s fees. The attorney’s fee provision is what can really hurt a business if it does not comply with the paystub requirements.

Even a “small” mistake can result in great financial harm to your business. You should consult a qualified attorney to reduce the chances of running afoul with the law.

Disclaimer: Accessing this website does not establish an attorney client relationship. The contents of this website are for informational purpose only; materials and documents on this website are general and should not be considered as legal advice from our office. Information in articles and posts on this website may be outdated as the law is constantly changing. If you would like to discuss a specific case or any legal matters please contact our office.

Law Offices of Alex Cha & Associates
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Los Angeles, CA 90017
Tel. (213)351-3513
Fax. (213)351-3514
Email:  info@alexchalaw.com

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