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Full Time Process & Things To Consider

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Massachusetts Compensation and Benefits

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Several different federal and Massachusetts laws regulate various forms of compensation and benefits.  Each social sector organization should adopt a compensation scheme that is compatible with the organization’s mission and furthers its human resources goals. 

Wages
Most employers — regardless of size — are governed by both federal and state wage and hour laws. Federal and state wage and hour laws differ slightly, and employers must be aware of both.  On July 24, 2009, the federal minimum wage was increased to $ 7.25/hr.  In Massachusetts, however, the minimum wage is $8.00/hr.  Under Massachusetts law, the minimum wage in the Commonwealth must be at least ten cents more per hour than the federal minimum wage. Massachusetts employers must pay at least the Massachusetts minimum wage rate.

The two major requirements in both federal and Massachusetts wage and hour laws concern: (1) payment of the minimum wage and (2) payment for overtime hours. Under the minimum wage laws, employers must pay employees an amount that is at least the statutory minimum wage multiplied by the number of hours that the employee worked in any given work week. Under the laws governing overtime, employers must pay most employees additional compensation at a rate of one and a half times their regular rate for overtime hours, i.e. hours above forty per week.

Minimum wage and overtime laws are not limited to hourly employees. Employees who are paid in other ways, such as by salary or commission, may also be entitled to minimum wages and overtime pay. The minimum wage laws apply to all employees and the overtime laws apply to all employees except those who fall into one of the “exempt” classifications under federal law.

Under the Massachusetts Wage Act, M.G.L. c. 149 § 148, all employees, whether salaried or hourly, must be paid within six days of the end of the employer’s pay period, which will usually be either one or two weeks long.  If an employee leaves her employment voluntarily, she must be paid all wages due her no later than the next regular pay day following her last day on duty.  If an employee is terminated involuntarily, she must be paid all wages due her immediately.  Generally, accrued but unpaid vacation time is considered “wages” and must be paid at termination. “Sick time” is not considered “wages.”  However, if vacation time and sick time are combined into a pool of paid leave time (such as a Paid Time Off (PTO) or Earned Time Off (ETO) policy), such accrued leave time must be paid at termination.  Employees cannot waive their rights under the Wage Act, so deferred compensation arrangements, as, for instance, when the founders of a fledgling company agree not to draw a salary until the company begins to make a profit, are illegal in Massachusetts.  Employees must be paid at least the minimum hourly wage rate for all hours worked, plus overtime where applicable.  

Bonuses
Bonuses can improve employee retention and provide extra incentives for reaching certain targets. Employers who provide bonuses (other than gift bonuses like holiday bonuses) should have a written bonus plan to ensure clarity, and to avoid unintended implied contracts.  Furthermore, how bonuses are determined and whether they are guaranteed (for example, for hitting certain production goals) or discretionary will also have an effect on calculating an employee’s overtime.

Taxes
Employers are required to withhold federal income tax and social security tax from taxable wages paid to employees. Under federal law, funds withheld must be deposited in certain depositories accompanied by a Federal Tax Deposit Coupon (IRS Form 8109) or through the Electronics Federal Tax Payment System (EFTPS). An Employer’s Quarterly Federal Tax Return (IRS Form 941) must then be filed before the end of the month following each calendar quarter. Willful failure on the part of the employer to collect, account for, and pay withholding taxes will subject the employer to a significant monetary penalty, and in some cases will impose personal liability on those responsible for remitting the withholding taxes.

Most employers, including nonprofit organizations that are not 501(c)(3) organizations, must also file an Employer’s Annual Federal Unemployment (FUTA) Tax Return (IRS Form 940) and pay any balance due on or before January 31 of each year. Details may be found in IRS Circular E, available at http://www.irs.gov/publications/p15/index.html.  Employers who are 501(c)(3) organizations, however, are not required to file a FUTA Tax Return.  If payment of tax is required, any balance is due on or before January 31 of each year. Details may be found in IRS Circular E, available athttp://www.irs.gov/publications/p15/index.html and in Publication 15A.

Mandatory Benefits 
Workers’ Compensation
All employers must provide worker’s compensation insurance for their employees.  There are some very limited exemptions from this requirement, but the worker’s compensation benefits are the only benefits available for an employee injured in an “on the job accident”.  What this means for employers is that an employee who is injured while performing work for the employer cannot sue the employer for his/her injury, but is compensated through worker’s compensation.  Failure to obtain coverage not only exposes the employer to the risk of a tort lawsuit from an injured employee, but may result in stiff fines and penalties from the Massachusetts Department of Industrial Accidents, which also has the authority to shut down the employer’s business until it obtains coverage.  Further information is available on the Department’s website,www.mass.gov/dia. 

Unemployment Insurance
Employers who pay wages of more than $1,500 in any given calendar quarter must contribute to the Massachusetts unemployment insurance fund.  Contribution rates are assessed according to the employer’s experience rating and the size and volume of its payroll.  Nonprofit employers may opt out of the experience rating system and choose to make contributions on a dollar-for-dollar basis if and when an employee files a claim that will be charged against its account.  When an employee is granted unemployment compensation benefits, whether and to what extent those payments are counted against the employer’s account depends on several factors, including how long the employee worked, the amount of wages the employee earned, and other recent jobs the employee may have or have had, if any.   Further information is available on the website of the Massachusetts Division of Unemployment Assistance, www.mass.gov/dua. 

Massachusetts Health Insurance Mandate
Massachusetts employers with 11 or more full-time equivalent employees must show that they have made a “Fair Share Contribution” to satisfying the state’s health insurance mandate, either by offering employer-sponsored health insurance to their employees at cost and coverage levels satisfying state regulations, or by making quarterly payments to the Commonwealth Care Trust Fund.  Detailed information on the Fair Share Contribution requirements may be found atwww.mass.gov/fairshare.   

Federally Mandated Benefits
See summaries of ERISA, COBRA and HIPAA in the Federal Laws Regarding Employment section.  If applicable, these federal laws mandate certain specified benefits. 

Mandatory Leave of Absence
Several federal and Massachusetts laws either require or govern leaves of absence, depending upon the reason for the leave. Although these leave laws can be very complicated, application of the laws usually depends on the size of the employer, and some of the more complicated laws do not apply to small employers. Various special leave provisions are discussed in the Federal Laws Regarding Employment section and Other Massachusetts Specific Considerations sections.

With certain exceptions, the federal Family and Medical Leave Act (“FMLA”) requires employers with 50 or more employees to provide unpaid family or medical leave of up to 12 weeks in a 12-month period for the birth or adoption of a child, for the serious health condition of the employee or spouse, parent or child of the employee, or for a qualifying exigency arising out of the fact that a spouse, child or parent of the employee is on active duty (or has been notified of an impending call or order to active duty) in the Armed Forces in the support of a contingency operation. A “serious health condition” includes inpatient hospitalization and subsequent treatment therefore and continuing treatment by a health care provider, including pregnancy. To be eligible for FMLA leave, the employee must have worked 12 months or longer, performed at least 1,250 hours of service for the employer in the 12 months prior to the date of leave, and must work at a site within 75 miles of which the employer has 50 or more employees. If the employee’s need for leave is foreseeable, the employee must provide his or her employer with 30 days notice before taking leave. When the need for leave is unforeseeable, the employee is required to provide notice as soon as practicable. 

An individual who believes his or her FMLA rights have been violated is entitled to file a lawsuit. Remedies include lost compensation, liquidated damages, other out of pocket expenses, equitable relief, and attorneys’ fees.

Voluntary Benefits
The benefits listed below are not required by law. However, many employers choose to provide employees with such benefits in order to attract and retain the most qualified workers.

An employer is not required to provide employees with retirement benefits, welfare plans, severance pay, or other voluntary benefits. If an employer does establish such plans, however, they are governed by a federal law called the Employee Retirement Income Security Act (“ERISA”). See the Federal Laws Regarding Employment section for more information.  Under ERISA, employee benefit plans must comply with numerous and complex procedural requirements. 

An employer is not required to provide employees with vacation pay. If an employer elects to provide such benefits, however, they should be uniformly applied in conformity with a written policy.  This will provide protection against claims of discrimination and may be necessary to ensure the employer complies with the pay provisions of the Fair Labor Standards Act (“FLSA”) as it relates to “exempt” employees.

Although it is not uncommon to do so, employers are not required to give employees paid holidays. Indeed, except in cases where accommodation of religious holidays might be required, employers are not even required to give employees time off during holidays.

Employers are not required to offer paid sick leave to employees. Traditional sick leave is often limited to time off for dealing with the employee’s own illness or possibly to care for a sick child or spouse.  Upon termination, the employer has no legal obligation to pay out unused sick leave, which means the employer’s written policy will control.

Many employers choose to combine vacation, sick leave, personal days, and floating holidays into a single “paid time off” or “PTO” policy.  This makes it easier to administer employee time off and a single policy for accumulating and using PTO will often suffice.  However, as noted above, under state law all unused PTO is considered “wages” and must be paid out to employees upon termination, whereas if an employer administers sick and vacation time separately, only the unused vacation time will be counted as “wages.”  

Paid leaves of absence, such as paid maternity or paternity leave, are not required by law.

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mettastar LEGEND

mettastar

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employee benefits inka 401 plan inka health insurance ey details ela telusukovali bhayya

Ask hr.. bonus entha.. inka emanna benefits unnaya apart from this ani
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vikuba LEGEND

vikuba

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MA lo ey location ? Boston aitey koncham ekuva adgochu..

 

suburbs like natick to marlborough, lowell etc lo kuda ekuva adgochu..

 

 

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