Non
Tax Federal Regulations
As an employer,
you will be responsible for complying with regulations enforced by
other departments of the federal government. Here are some areas you
should be familiar with.
Employment
Eligibility Verification
Employers
must verify whether an individual is eligible for employment in the
United States. This is done by completing Form I-9, Employment Eligibility
Verification, for every employee you hire. The completed form should
be placed in the employee's personnel file, and must be available
if requested by the Immigration and Naturalization Service or the
U.S. Department of Labor.
Employee
Protection and Assurances
Assurance
of Equal Employment Opportunities: Federal regulations exist
to guarantee the right of all citizens to be employed and to advance
in employment because of merit and ability. The intent of the legislation
is to protect employees from discrimination due to race, color,
religion, sex, age, national origin or disability. These laws are
enforced by the Equal Employment Opportunity Commission (EEOC).
While there
are not forms to complete and submit to a government agency on a
regular basis, employment regulations do require an employer to
monitor carefully personnel actions to ensure that recruitment,
hiring, compensation and the general work environment are fair and
equitable. Decisions regarding employees should be made on the basis
of skill, ability and performance patterns. Documentation of employee
performance, performance criteria, changes in wages and salary and
the administration of employee benefits should be kept for each
employee. The atmosphere of the workplace should be positive and
encouraging for all employees. Consistency in how you recruit, hire,
compensate, promote and treat all the people who work for you is
the key to equitable employment practices.
Assurance
of Fair Labor Standards and Compensation: The Fair Labor Standards
Act (FLSA) provides regulations for employers regarding minimum
wage, overtime, even child labor standards. The Wage and Hour Division
of the Department of Labor, administers and enforces the FLSA and
other labor laws.
Employers
are required to keep records regarding wages and work hours for
their employees. Most of this information is already tracked by
businesses for various reasons, such as tax planning, budgeting,
management, etc. The Department of Labor has the right to inspect
payroll records and documents if they have reason to suspect that
labor laws have been broken.
Assurance
of Safe and Healthful Working Conditions: The Occupational Safety
and Health Administration (OSHA) of the Department of Labor is responsible
for enforcing safety and health standards and regulations. OSHA
requires employers to develop and implement comprehensive safety
and health plans. Such plans include inspection of work facilities,
removal of hazards, educational programs and the filing of health
and safety records. Regulations and standards vary by industry,
work performed and products produced.
Employers
with eleven or more employees at any one time during the previous
calendar year must keep OSHA records. There are two OSHA forms used
for record-keeping. OSHA Form 200, Log and Summary of Occupational
Injuries and Illnesses, is a log of each occurrence of injury or
illness during a year.
The second
form is OSHA Form 101, Supplemental Record of Occupational Injuries
and Illnesses. This form should be used by a business to report
injuries and illnesses that are not otherwise reported through worker's
compensation or to an insurance company.
These forms
should be kept on file in the business for five years, and be available
for inspection at the request of the U.S. Department of Labor or
the U.S. Department of Health and Human Services.
The State
of North Dakota
The state
government also has red tape which affect your business. Happily,
it is not nearly as complex as the federal level.
Registering
with the Secretary of State: To monitor legitimate business
ventures in the state, the State of North Dakota needs to know when
businesses are formed and who is responsible for the business. Corporations
and partnerships must register with the Secretary of State before
conducting any business in the state.
Registered
Agent: Each business must assign and register one individual
who becomes the business's registered agent. The registered agent
will be served all legal documents for the business. So as a new
business you should complete and file Form SFN 7974, Statement of
Consent to Service as Registered Agent, with the Secretary of State.
Authority
to do Business: Before a corporation or partnership can conduct
business transactions in the State of North Dakota, it must have
the authority of the Secretary of State. To obtain that authority,
you must complete and file an Application for Certificate of Authority
(Form SFN 13100) with the Secretary of State
Filing
the Articles of Incorporation: A newly formed business must
also file its Articles of Incorporation with the Secretary of State.
The articles of incorporation is the legal structure of a business.
You will need to complete and file Form 16812, Articles of Incorporation,
with the Secretary of State.
Registering
a Trade Name: If you wish to protect the trade name of your
business, you can register the trade name with the Secretary of
State. The trade name may not be the same as, or deceptively similar
to an existing trade name. Submit an application to the Secretary
of State using a form entitled Application for Registration of a
Trade Name.
You may
wish to get legal assistance to prepare the documentation needed
for registering with the Secretary of State. Also be forewarned
that there are fees associated with the filing of each of the forms.
North Dakota
Taxes and Worker's Compensation
Withholding
State Income Tax: The state, like the federal government, requires
you to withhold state income taxes from employees' paychecks. Before
doing so the state will need your federal Employer's Identification
Number (EIN) that you obtained from IRS. Once the North Dakota Tax
Department has your EIN on record, it will send you the necessary
forms each quarter for submitting the state income tax you withheld.
Complete and file Form WH-301, Application to Register for Employer's
Withholding ID Number, with the North Dakota Tax Department to register
your EIN.
Complete
and file Form F-306 to report the employee state income tax withheld.
You submit the form along with your deposits. And as with federal
income tax, you must file a Wage and Tax Statement (Form F-307)
which reports to the state the amount of salary or wages you paid
an employee along with the amount withheld.
State
Sales or Use Taxes: The State of North Dakota imposes a sales
tax on all retail sales except for food items and many types of
services. Businesses are required to collect sales tax from purchasers
and remit them to the North Dakota Tax Department.
If your
business is going to sell products in the state that are taxable,
you must first obtain a sales tax permit. Once the tax commissioner's
office has approved the sales tax permit, it will send you the necessary
forms you will need to file sales tax.
The application
for a sales tax permit is Form 21869 and is available for the North
Dakota Tax Department. The sales tax itself is sent to the sent
quarter and, yes, there is a form to fill out when submitting that
as well. You will get the forms when you receive your sales tax
permit.
North
Dakota Income Tax: The State of North Dakota requires all taxable
entities to prepare and file an income tax or information return
annually. The form of your business - corporation, individual proprietor
or partnership - will determine the type of form needed and how
the earnings of the business will affect you as the owner.
- Corporations - Form
40, North Dakota Corporation Income Tax Return
- Individual Proprietorships
- Form 37, North Dakota Individual Income Tax Return
- Partnerships - Form
58, North Dakota Partnership Return of Income
North
Dakota Worker's Compensation: Worker's compensation provides
for payment of compensation benefits to employees who are injured
on the job. Workers compensation is a state law, and you must have
worker's compensation before any employee begins to work for your
business. Annual premiums for worker's compensation are based on
estimated payroll, number of employees and your type of business.
Obtain an
application for Worker's Compensation (Form SFN 5556) from the North
Dakota Workers Compensation Bureau.
North
Dakota Unemployment Insurance: The State of North Dakota requires
all employers to contribute to the state's unemployment insurance
tax fund. Employers must file a report with Job Service of North
Dakota to determine the amount of unemployment tax they will need
to pay.
To determine
the amount of the business's unemployment insurance liability, file
Form NDUC-301 (Report to Determine Liability) with the Job Insurance
Division of Job Service of North Dakota.
Once you
determine your insurance liability, you must file quarterly wage
reports and remit tax due for state unemployment insurance.This
report uses NDUC-303, Employer's Contribution and Wage Report, and
it is sent to the Job Insurance Division of Job Service of North
Dakota.
North
Dakota Tax Incentives: The State of North Dakota has tax incentives
to aid business growth and development within the state. To determine
if your business is eligible for tax incentives, contact:
The North
Dakota Tax Department
600 East Boulevard Avenue
Bismarck, North Dakota 58505-0599
1-800-638-2901
Local
Taxes and Regulations
Counties,
town and cities may also collect taxes which may affect your business,
such as real estate taxes, personal property taxes or taxes on gross
receipts of businesses. Larger cities may have a sales tax in addition
to the state sales tax.
Your business
may also need to file for a special license or permit with your county
or city government. There are also local zoning laws or building codes
you will need to obey.
To determine
what your responsibilities are to local governments, contact the City
Auditor, County Auditor and Treasurer or your local Township Clerk
for this information.
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