Business.com |
| What Business Owners Should Know About Hiring Minors for Seasonal Work Posted: 09 Jun 2020 07:39 AM PDT  As we approach summer, you may be considering whom you should hire for seasonal work. With unemployment at 13.3% nationwide, those who are looking to hire employees have a wide talent pool to choose from right now – and that includes employing minors. As a business owner, while you might be wary of hiring minors due to their lack of traditional work experience, there are several advantages. Learn about the benefits of hiring minors, along with the tax and labor laws that apply to them. What is the minimum age of a minor employee?Although a minor is typically thought of as anyone under the age of 18, the general minimum age of a minor employee is 14 years old. Keep in mind that child labor laws and limitations vary from state to state, and younger employees often come with a higher number of restrictions. What are the benefits of hiring minors?Although minors often lack the traditional work experience that many companies look for when hiring employees, there are a few advantages of hiring minors. One of the most obvious advantages is their ability to perform seasonal work. Since minors typically search for part-time or seasonal job opportunities, their schedules are often more flexible than their adult counterparts who may be looking for full-time employment with fringe benefits. You can hire minors as needed, which allows you to accommodate seasonal staffing needs. A second advantage of hiring minors is their employment expectations. Minors aren't typically concerned with career growth, which can allow you to hire employees for entry-level positions that don't necessarily have an opportunity for advancement. Their wage expectations are lower, too, which allows you to fill open minimum wage positions. A lesser-known benefit of hiring minors is the potential for tax incentives, which could save you even more money. "The government encourages small businesses to support the work experience of minors by providing tax incentives," Zachary Weiner, owner and CEO at Restaurant Accounting, told business.com. "Remember that the benefits differ by state, so it is best to consult with a tax agency to determine what applies to your business." Hiring minors can aid your business in terms of quality. Since minors are often looking for a money-making opportunity to pad their resumes or receive a professional reference, they are likely to be committed to doing a good job. If you are hiring someone for their very first job, you have the opportunity to mold them into a great employee. Typical jobs for minorsSince minors are ideal candidates for low-wage seasonal work, especially during the summer, they are often hired for seasonal jobs that have low-risk responsibility – like bussers, grocery baggers or movie theater ushers. Although there are many industries that can legally hire minors, there are limitations and requirements regarding which minors are eligible for jobs at these establishments. Here are some of the most common business types and jobs:
Labor laws and job restrictions for minorsThere are several labor laws and job restrictions for minors that small business owners should be aware of. The primary federal law that regulates and protects young workers is the Fair Labor Standards Act (FLSA). The FLSA applies to every state. "The child labor provisions of the FLSA are designed for the purpose of protecting children's health, safety and their opportunities for education," said Jonathan Melmed, employment lawyer and founding shareholder of Melmed Law Group. "In addition to the FLSA, states (or even cities or counties) may enact their own sets of laws concerning the employment of minors." To stay compliant, it is important that you understand federal child labor laws, in addition to state and local restrictions. If you live somewhere that has conflicting child employment laws, then the law that is more protective of the minor employee generally applies. Age restrictionsThe minimum age a minor can work is typically 14 years old, but there are restrictions as to what job functions minors of certain ages can perform. When we spoke with Melmed, he listed a few general minimum age restrictions for certain job functions:
The above job functions may vary, depending on the labor standards in your specific area. Melmed added that the FLSA also permits minors to perform "artistically creative" work, such as computer programming, software writing, tutoring, serving as a teacher's assistant, playing a musical instrument or drawing. Hazardous job restrictionsMinors are protected from working hazardous jobs. Although the definition of what constitutes "hazardous" varies by state, individuals under the age of 18 are generally prohibited from working in excavation, explosives, coal mining, firefighting, forestry, logging, mining, operating heavy machinery and tools, roofing, slaughtering and meatpacking. Melmed said that employers are also prohibited from hiring minors under age 16 to operate motor vehicles or work in construction, communications, hazardous farm work, transportation or warehousing. "Some states include their own prohibitions on hazardous work for minors," said Melmed. "For example, in California, minors under 16 are prohibited from working in, among others, construction; manufacturing; operating or assisting with specified pieces of machinery; working on a railroad, vessel, car, or other vehicle; or working in proximity to toxic substances, such as acids, dyes, and gas." Restrictions on working hoursA major consideration when hiring minors is the number of hours they are legally allowed to work. This is especially important if you own a business that operates late hours or needs employees to work extended shifts. The FLSA limits 14- and 15-year old minors to the following working hours:
Your state may have additional restrictions about how many hours a minor can work. Visit the U.S. Department of Labor's website to learn more information about child labor laws specific to your state. Expert advice for hiring minorsWhen hiring and managing minors, be mindful that many of these employees are entering the workforce for the first time. They are still children, and you will have to manage your expectations accordingly. Mentor them in a way that sets them up to be great employees. "Seasonal work is an excellent platform to help minors get used to the real world," said Weiner. "Small businesses should keep that in mind, and use the opportunity to guide minors and equip them with the necessary work ethic and attitude essential for their future employment." Small business owners should also pay close attention to the applicable child labor laws and restrictions. Melmed said the best way to determine whether it is legal to hire a minor to perform a particular job function is to speak with an employment lawyer who can evaluate particular job scenarios. This evaluation can include a review of your industry, the occupation and the age of the minor. |
| What IRS Forms 1094-C and 1095-C Mean for Small Businesses Posted: 09 Jun 2020 04:00 AM PDT  Since the passage of the Patient Protection and Affordable Care Act (ACA) in 2010, businesses owners in America have been required to follow federally mandated guidelines to ensure their ACA compliance with the Employer Shared Responsibility Provision, also known as the "employer mandate." As a result, employers have been required to fill out IRS forms 1094-C and 1095-C to provide details about the health coverage they offer their full-time employees. These two forms continue to be part of a small business owner's annual tax responsibilities. Which businesses are required to submit forms 1094-C and 1095-C?Any company with at least 50 full-time employees is designated as an "applicable large employer" (ALE), making these forms a requirement. When the ACA was passed 10 years ago, forms 1094-C and 1095-C were optional filings for coverage year 2014, and were made a requirement for coverage years starting in 2016. With the responsibility landing on employers to provide the ACA's minimum essential coverage to at least 95% of the workforce, these two forms are a way for those employers to prove their offerings to the IRS. Your business must submit both documents as each serves as individual portions of your overall ACA reporting requirements. If your company has 50 or more full-time employees, or your small business is part of a controlled and affiliated service group for its healthcare coverage, it's imperative that you not only realize the importance of these two forms but also understand how they are filed. Editor's note: Looking for the right health insurance plan for your business? Fill out the below questionnaire to have our vendor partners contact you about your needs. Why are 1094-C and 1095-C important?When the ACA was officially signed into law by then President Barack Obama, it was the culmination of years of a political back-and-forth over the future of the American healthcare system. For the president and his Democrat allies in Congress, the goal was to reduce healthcare costs while also providing coverage to more Americans, including those with pre-existing conditions. Republicans, however, wanted to either keep things as they were or further privatize healthcare. What the country ended up getting was a compromise of sorts. The ACA – commonly referred to as Obamacare – left the existing system intact and added an option for workers to seek coverage from the government's health insurance marketplace. To keep costs down, the ACA required everyone to have health coverage for at least nine months out of the year. Forms 1094-C and 1095-C were used to prove that employers provided health insurance or that an individual had health insurance under their own plan. Companies that failed to meet ACA reporting requirements would incur penalties in the form of an additional tax. Though that tax penalty has since been eliminated by the Tax Cuts and Jobs Act of 2017, the forms are still required by the IRS. What is Form 1095-C?Required by sections 6055 and 6056 of the Internal Revenue Code, Employer-Provided Health Insurance Offer (Form 1095-C) is filled out by an employer for each of its employees. According to the IRS, this form is required for each person who was a "full time employee of the ALE member for any month of the calendar year, including any employee who was treated as a full time employee for one or more months of the calendar year" under the "employer mandate." If an applicable large employer helps cover an employee's self-insured health plan, they must also file a 1095-C for each person under those plans, regardless of whether they were a full-time employee or not. Ultimately, the form is required by the IRS so it can determine whether an employer is meeting ACA guidelines. If a business is required to provide health insurance coverage but doesn't, it can be liable to pay a penalty, though the IRS can offer penalty relief if certain conditions are met. The reporting form also lets the IRS know who has employer-provided health coverage and who doesn't. For those that don't have such coverage, the IRS can locate them and provide a "premium tax credit" to help get them insured. What is Form 1094-C?Form 1094-C is a supplemental transmittal form to accompany the 1095-C. Described by Intuit as a "cover sheet" for the 1095-C, this form provides general information about an employer's minimum essential coverage. Employers use the 1094-C form to provide the IRS with the following:
Filing Forms 1094-C and 1095-CWhen it comes time to file both forms, it's important to remember some easily overlooked requirements. First, and most importantly, an employer that fits the ALE description must file a 1095-C for every employee covered under the ACA. While that may sound like a time-consuming task for companies with 50 or more employees, most modern business tax software handles this process automatically. Second, companies are barred from filing their separate 1095-C forms with the IRS without including a 1094-C. Omitting Form 1094-C does not provide the IRS with the aforementioned summary information surrounding a company's ACA requirements. Finally, companies are required to file their forms at different times of the calendar year depending on how they're filed. If submitting paper documents, they must be sent to the IRS by the end of February. Companies that file electronically must send their documents by the end of March. Employers with fewer than 250 forms to send can do so through a paper filing, though employers with more than that are required to file electronically. Furthermore, the filing deadline for employers to send their 1095-C forms to employees is the end of January. 1094-C and 1095-C vs. 1094-B and 1095-BIf you've done some preliminary research, you may have noticed that some businesses are required to file 1094-C and 1095-C, while others must file 1094-B and 1095-B. While both sets of documents perform similar functions, the difference lies in which businesses are eligible for the B version versus the C version. The biggest difference between the two types of forms is that the B-variant applies to self-insured plans for small groups not covered under the "employer mandate." According to the IRS, all businesses receive the 1095-B form, which is completed by the healthcare carrier or sponsor and provided to employers. This is a major difference from 1095-C, which is always filled out and submitted by ALEs and members of ALE groups to prove that they provide the minimum essential coverage to their employees. |
| You are subscribed to email updates from Business.com. To stop receiving these emails, you may unsubscribe now. | Email delivery powered by Google |
| Google, 1600 Amphitheatre Parkway, Mountain View, CA 94043, United States | |
No comments:
Post a Comment