Question

The following may create employer liabilities in connection with their payrolls:

1) Overtime pay
2) Minimum wage violations
3) Misclassification of employees
4) All of the above

Answer 1

Employer liabilities in payroll include overtime pay, minimum wage violations, and misclassification of employees, all of which can lead to significant legal and financial repercussions.

Step-by-step explanation:

Employer liabilities in connection with their payrolls can arise from various payroll-related issues, including overtime pay, minimum wage violations, and misclassification of employees. Each one of these areas can result in significant liabilities for an employer.

• Overtime pay requirements demand that employees who work over a certain number of hours in a workweek are compensated at a higher rate, typically one and a half times their regular hourly wage for each hour worked beyond the standard 40-hour workweek.
• Minimum wage violations occur when an employer fails to pay the legally mandated minimum hourly wage, which varies by jurisdiction.
• Misclassification of employees involves incorrectly categorizing workers as independent contractors instead of employees, to avoid paying payroll taxes, overtime, and other employee benefits.

Thus, the correct answer to the question is 4) All of the above.