Topic 2 – Payroll laws and regulations

Two other major payroll compliance laws include:

• Immigration Reform and Control Act (IRCA) – Requires verification of employee identity and eligibility to work in the US. Form I-9 must be completed.
• Worker’s compensation – Requires employers carry insurance to cover costs for work-related injuries, illness or death. Regulations differ by state.

State laws may also have supplemental requirements regarding final wage payments, paid leave allowances, minimum wage rates etc. Careful recordkeeping is important to prove compliance if ever audited by regulating agencies.