CLIENT ADVISORY MEMORANDUM
WAGE REPORTING RULES

Many small businesses are not aware of new rules that went into effect in New York State in April 2011 as a result of the Wage Theft Prevention Act (WTPA).

This act changes the requirements related to notifying employees of their wage rates.  Employers now must provide written notice, not only to each new hire, but to all employees by February 1st each year

Not complying with the requirements can carry heavy fines.  The fines can be up to $50 per employee per week for failure to provide the required notice.

New York State Department of Labor has indicated that the notice to the employees must contain:

  • The employee’s rate of pay (including overtime rate of pay if it applies) and the basis of the rate (e.g. hourly, weekly, commission, etc.)
  • The regular pay day, which must be in accordance with the frequency of pay rules of the Labor Department.
  • The employer’s name, address and telephone number, as well as any “doing business as” names, and any mailing address, if the mailing address is different from the main office address.

It is important to note that the employer must maintain a signed copy of the notice in their files for 6 years..

New York State has provided an explanation of the requirements, which can be found at:
http://www.labor.ny.gov/formsdocs/wp/P715.pdf
.  Please review the explanation for further details.

Additionally, New York State has provided a sample wage statement which includes the required information to be given to the employee.  The sample can be found at:
http://www.labor.ny.gov/formsdocs/wp/WTPA%20Sample%20Wage-Statement.jpg
.

Finally, New York State has provided a form that can be used to provide the information to the employee and for the employee’s signature.  The form can be found at:
http://www.labor.ny.gov/formsdocs/wp/LS54.pdf

Additional related documents can be found at the following URL:
http://www.labor.ny.gov/formsdocs/wp/ellsformsandpublications.shtm

Our recommendation would be to provide notice to all employees on an annual basis, whether or not you are a New York State employer. 

If you have any questions, please contact Stephen W. Beer, CPA, at (212) 397-2970.

 

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