If you are a small business owner, you may find it extremely convenient to hire family members. You probably have long-term, trusting relationships with these individuals. Also, you can help relatives by providing them with viable employment. You cannot ignore business law when it comes to these situations. It’s important to understand all applicable regulations so that you can create a mutually beneficial relationship.
If you are hiring minor-age workers, there are particular guidelines that you should be aware of. The Fair Labor Standards Act is a business law that outlines the hiring and employment of teenagers. Minors cannot perform hazardous jobs. There are restrictions on the number of hours minors can work. These may vary between the summer and school year, depending on state business law. If the teenager is a family member, you may be able to hire them at a younger age depending on local laws. A business law attorney can help you understand the regulations that apply to your particular situation.
One way to comply with business regulations is to create an employee handbook. These outline the rules and regulations that cover both you and the employee. A thorough handbook can help you and your workers understand the obligations that are incurred during the working relationship. An employee handbook should address local, state and federal regulations. It’s a good idea to have an experienced business law attorney review your employee handbook. The attorney can tell you what information is missing and bring inaccuracies to your attention.
Tax regulations can cause problems for small business owners, especially when it comes to hiring family members. Tax laws prohibit you from paying employees “under the table.” This means that you need to meet all IRS reporting regulations for wages. If your company is audited, the IRS can easily uncover discrepancies in wage reporting and you could face serious fines. You can avoid these mistakes by consulting with an attorney specializing in business law. The attorney will help you understand the tax laws that apply to your small business. He can advise you on how to set up an accounting system that will report taxes properly so that you don’t make mistakes.