Any business structure or corporation stands firm on its foundation laid by the employees. An LLC is no exception to this rule. Hiring employees in your LLC comes with some rules, regulations. Before understanding the rules of hiring employees in West Virginia LLC, we must understand what an LLC means.
A Limited Liability Company is a business structure that protects the owners from any personal responsibility of the debts or liabilities arising out of the LLC. If an employee action succeeds to liabilities, the owners get the protection against it. LLCs are a combination of the characteristics of a partnership firm & a sole proprietorship.
Hiring Employees in West Virginia
In order to hire employees in West Virginia LLC, there are many requirements that a business has to fulfill. One should keep these points in mind while hiring employees in an LLC. These requirements include:
1. Federal & State Employment posters in West Virginia
The employers in West Virginia are required to show both Federal & State Employment posters mentioned in Equal Employment Opportunities Act, Americans with Disabilities Act, Fair Labour Standards Act (FLSA), etc. You should seek professional help to fulfill all the norms or requirements.
2. Federal & State Required Forms
Hiring employees is a lengthier process that involves the filing of different forms & applications. Suppose you wish to hire employees in West Virginia. In that case, you must ask your employees to submit the Employment Eligibility Form, the Federal Tax withholding form, the W-4 Form, Workers Compensation Claim Form, Disability Self- Identification Form, U.S. Citizenship and Immigration Services Form, etc. These Legal forms are easy and free to download.
3. Requirements of West Virginia New Hire Reporting program
Employers of Business owners are bound by West Virginia’s New Hire Reporting Program, under which they have to submit a report consisting:
- Company Name
- Company Address
- Company federal tax ID number
- Employee’s Name
- Employee’s Social Security Number
- Employee’s Address
- First Day of paid Work
In addition to the forms mentioned above, payments, taxes, tax forms, & requirements, there may be some additional compliance for hiring in West Virginia; you must adhere to those norms as well.
Can an LLC Hire Employees?
An LLC or a Limited Liability Company can be regarded as a corporation, partnership, or sole owner business. The owners of the LLC are often referred to as members. Individuals, Corporations &, in some cases, other LLCs can form an LLC as members.
The members form LLCs because of their limited or no liability provided to the owners or members. In the event of liabilities arising out of an employee’s action, the members of the LLC are not personally liable- the LLC is liable for the actionable claim.
Any LLC (even one with a single owner) can hire unlimited employees on wages or salary. (The single-member owner LLC may have different rules and regulations). In addition to the salaried employees, the LLC can appoint Independent contractors for certain tasks on a contract basis.
Rules to Hire Employees in an LLC in West Virginia?
Just like any other business corporation, an LLC is also not immune from certain procedures & rules of hiring. An LLC files many documents & pays a number of taxes to various Government Agencies while hiring employees. Some of the essential rules or steps to hire employees in an LLC are:
- Federal Employer Identification Number – Every LLC must obtain an Employer Identification Number (EIN) from the Internal Revenue Service. EIN helps report taxes & a few other documents to the IRS.
- Employee Eligibility Form – It is mandatory for an LLC owner to check if the employee is eligible for employment in the U.S. An LLC has to ask the employees to submit the I-9, Employment Eligibility Verification Form to verify the identity of the employee & to authorize the employment. the I-9 form is a mandatory requirement while hiring an employee.
- Employee’s Social Security Number – The employee has to have a valid Social Security Number (SSN) to work. LLCs have to ask the new employees to submit their SSN before employment. The SSN is helpful in payment & tax purposes.
- Setting up a process for collection & payment of the appropriate taxes – There has to be a due process for the employees’ future collection & payment of taxes. This process needs to be set up by the employer (in this case, the LLC)
- Employee handbook – In the hiring process, one of the crucial elements of hiring paperwork is an Employee Handbook. Although it is not essential in West Virginia, it is usually needed as one of the legal documents in many other states. An Employee Handbook consists of a complete list of all the basic rules & policies of the company.
- West Virginia Payroll Taxes – An LLC that is running a business with employees or businesses with employees has to pay many federal taxes & state Taxes. Following the rules on payroll taxes is also an essential requirement. After hiring employees, an LLC is subject to the State Unemployment Compensation Act. Under the said Act, an LLC will have to pay Unemployment tax to the state & to do that; the LLC must register itself with the West Virginia Workforce Commission. The process involves simple steps & can be completed in 20 minutes.
Payroll taxes also include Federal Income Tax withholding, an employer can withhold money from the employee’s account for the income tax. - Workers’ Compensation Insurance An LLC operating in the state of West Virginia has to carry workers’ compensation insurance & has to display relevant posters.
- New Hire Report or Report of the New Employee – An LLC has to
- Report about hiring the new employees in the form of “Report of New Employee(s)” to the West Virginia Workforce Commission within 20 days from the date of hire.
- Deposit and report federal employment taxes as per the IRS procedures for payroll reporting & payment.
Laws Relating To Wages Of Employees
The State of West Virginia follows a combination of State mandated laws in compliance with the federal legislation. The Labour Laws in the State implement the minimum employment protection criteria and safeguard the interest of employees working in the State.
- The minimum wage in West Virginia is $8.75 per hour worked
- Discrimination and retaliation against employees in a range of protected classifications are illegal in West Virginia.
- Minimum wage, overtime, meal breaks, and child labor are all regulated in West Virginia.
- Employers are required to offer a safe working environment for their employees, which includes implementing a written accident prevention policy.
- Employers in West Virginia must comply with relevant final pay when an employee’s employment terminates.
- Business LLCs in the State must adhere to the federal legislation as well as the State-enforced labour laws.
Structure of Wages Of Employees
West Virginia employment rules and regulations are covered in this section, including payroll standards, legal holidays, whistleblower protection acts, etc.
West Virginia Minimum Wage
The employees must be paid a minimum payment of $8.75 per hour under West Virginia’s Minimum Wage and Maximum Hours Standards Law. During any calendar week, the rule normally applies to an employer with six or more employees in one separate, distinct, and permanent location.
- Tipped Minimum Wage: Tipped employees in the State are paid at a rate that is 70% less than the state-mandated minimum wage, which is $2.62 an hour, under the Fair Labor Standards Act. When the employee’s decreased compensation is added to his or her tips, the total should be at least the state’s minimum wage. If it falls short, the employer is responsible for the shortfall.
- Trainees: Employers in West Virginia are permitted to pay trainees under the age of 20 a subminimum wage of $6.40 for a total of no more than 90 days per employee.
- Student Learners: Employers in West Virginia are not permitted to pay learners a subminimum wage rate that is less than the state’s regular minimum wage.
West Virginia Overtime Compensation
Employees who work more than 40 hours in a workweek are entitled to one and a half their usual hourly wage. Employers and workers may agree that employees who work more than a specified number of hours in a workday will be paid overtime.
Youth Labor
When their school is in session, minors between the ages of 14 and 15 shall not work for more than 3 hours a day and 18 hours per week. When school is not in session, you can work up to 8 hours per day and 40 hours per week. Minors of 16 and 17 years are allowed to work the same hours as adults.
West Virginia Employee Rights
Employers in West Virginia must follow the state’s labor standards while hiring personnel. Workers and employees have many rights under the laws. The following are some of the key statutes that provide employees in West Virginia with a variety of rights.
Anti-discriminatory Rights
The West Virginia Human Rights Act (WVHRA) strictly prohibits discrimination against job applicants and employees on the basis of protected features such as color, race, religion, nationality, handicap, sex, and others.
Equal Pay
The ‘Equal Pay for Equal Work Act’ in West Virginia compels companies to pay the same salary rate to male and female workers for work of equivalent character and skill requirements. If wages are paid based on seniority, merit, quantity, or quality of output, or if a discrepancy is based on good-faith considerations other than sex, the equal pay rule does not apply.
Whistleblower Protection
Employees who disclose unlawful, unethical corporate activities of their employers to the law enforcement agencies are protected by state “whistleblower” laws, which ban employers from terminating, demoting, or otherwise retaliating against them. If the employer’s unlawful behavior includes fraud against the state or federal government, the extent of legal protections for whistleblowers may be expanded accordingly.
Paid Time Off and Leave of Absence
Employers in West Virginia are not required by law to give sick leave or paid time off to their employees. However, depending on their job title and/or length of service with the firm, some organizations will provide this benefit to their workers. Employees eligible to receive leave under the Family and Medical Leave Act may be granted time off to look after a sick family member, care for a new infant, or recuperate from a major illness.
Occupational Safety
The State of West Virginia follows the Federal Occupation Safety and Health Administration’s (OSHA) standards, to ensure that state agencies follow OSHA regulations to provide a workplace free of recognized hazards that could cause serious injury or illness to employees.
Final Pay
Employees must be paid all final salaries by the next regularly scheduled paycheck if they leave their jobs for any reason including terminations, resignations, and layoffs.
FAQs
An LLC is a business entity that can be treated as either a corporation, a partnership, or a sole owner business.
The owners of the company are not personally liable for the actions of the employees, the LLC is liable for any such actions.
Before hiring an employee, under federal law, the business has to verify an employee’s eligibility to work in the United States with the (IRS Form I-9). The business owner also has to make sure the employee has a valid SSN or Social Security Number.
LLC members, or LLC owners, are self-employed according to the IRS because they pay themselves through the earnings of LLC.
How to Hire Employees Fast in Your West Virginia LLC
To hire employees for your West Virginia LLC you need to verify if the person is eligible to work in the US and then report him/her as ‘new hires’ to the state.
First and foremost, it’s important to have a clear and detailed job description. This will help potential candidates understand the roles and responsibilities of the position they are applying for. A good job description should include the job title, key responsibilities, required qualifications, and any other relevant information about the position.
Once you have a well-crafted job description, it’s time to advertise the job opening. There are several ways to advertise a job, including posting on job boards, social media platforms, and your company’s website. You can also reach out to your network and ask for referrals from friends, family, and business contacts. Word-of-mouth can be a powerful tool in finding qualified candidates quickly.
When reviewing applications and resumes, make sure to look for candidates who not only have the necessary skills and experience but also fit well with your company culture. Consider having a phone screening with potential candidates to get a better sense of their personality and communication skills.
To speed up the interview process, consider conducting group interviews or using video interviews. Group interviews can help you assess how candidates interact with others and how they perform in a team setting. Video interviews can also be convenient for both you and the candidates, as they eliminate the need for travel.
Once you have identified the top candidates, move quickly to make a job offer. Delaying the offer can result in losing potential hires to other companies. Be prepared to negotiate terms and salary, but also be transparent about your expectations and what you can offer.
After making a job offer, be sure to conduct thorough background checks and reference checks. This will help you verify the information provided by the candidate and ensure that they are a good fit for your company.
Onboarding is a crucial step in the hiring process that should not be overlooked. Provide new employees with the necessary training and resources they need to succeed in their role. Set clear expectations and communicate regularly with new hires to make sure they feel supported and valued.
In conclusion, hiring employees quickly for your West Virginia LLC doesn’t have to be a daunting task. By having a clear job description, leveraging various resources to advertise the job opening, conducting efficient interviews, making timely offers, and providing thorough onboarding, you can find the right employees for your business in no time. Remember that hiring is not just about filling a position but building a team that will help your business grow and succeed.
In Conclusion
All the LLCs with employees are bound by many rules and regulations with reference to wages. It is always advisable to register a registered agent service to understand the laws better. Feel free to share your feedback with us in the comment section below.