Things are fun when you own a business in Tulsa, Oklahoma! But along with the fun comes the duty to make sure you follow the rules for payments in your area.
Do not worry – this article will break down the most important things you need to know to make sure your payroll goes smoothly, and there are no unexpected surprises. Additionally, we can assist you if you need dependable payroll services in Tulsa, OK.
Knowing the minimum wage is important.
The government minimum wage is $7.25 an hour, and Oklahoma follows it. This means that you have to pay your workers at least this much unless they are in certain groups that have different minimums.
For example, people under the age of 20 get $4.25 an hour for the first 90 days, and people who get tips earn at least $3.63 an hour as long as their tips bring their total earnings up to the government minimum.
Understanding overtime pay.
If you work extra hours in Oklahoma, you have to follow the Fair Labor Standards Act (FLSA). This means that workers who put in more than 40 hours a week are paid extra. It costs them 1.5 times their standard hourly wage to work extra hours.
But some workers, like executives, managers, and some professionals, might not have to get extra pay. For specific limitations, it is best to talk to a professional or the Department of Labor (DOL).
Keep track of taxes.
Payroll taxes are a very important part of the picture. As an employer in Tulsa, you will need to take out federal income tax, Social Security tax, and Medicare tax from your workers’ pay. Besides that, you will have to pay your fair share of SS and Medicare taxes.
The good news? One less thing to worry about is that Oklahoma does not have its own state income tax. There is, however, a 1% local sales tax in Tulsa.
Do not forget that these are only the basics. Depending on the type and size of your business, you may have to pay extra taxes.
Understanding how to give your team paid time off.
Paid time off (PTO) is not required by law in Oklahoma, but many businesses give it to draw and keep good employees. If you decide to give your workers paid time off, you will need to make sure they know how much time they get, how they can use it, and how they get paid for it.
It is important to be consistent, so make sure your policy is well-written and your team understands it.
Keep all records carefully.
It is very important to keep accurate payroll records. These records should show how many hours an employee worked, how much money they made, any expenses, and any paid time off they used. You and your workers will be safe in case of reports or arguments if you have a good paper trail.
Get help whenever you need it.
Payroll rules can be hard to understand, so do not be shy about asking for help! You can find useful information to help you through the process on the Oklahoma Department of Labor (ODOL) page. Professional accounting services can also do the work for you and make sure it is done correctly and in line with the rules.
Get help from a professional today!
This guide gives you a general idea, but you may need to do more study for certain cases in your business. For help with complicated legal and financial issues, it is always best to talk to a trained professional like an accountant or lawyer.
Know these important parts of Oklahoma’s payroll rules, and your Tulsa business will have a smooth and legal payment process. Now, you can go out there and confidently build your team!
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