Hiring Employees in Oklahoma LLC – Wages, Laws, Compliance Guide


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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 Oklahoma 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 Oklahoma

In order to hire employees in Oklahoma 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 Oklahoma

The employers in Oklahoma 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 Oklahoma. 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 Oklahoma New Hire Reporting program

Employers of Business owners are bound by Oklahoma’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 Oklahoma; 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 Oklahoma?

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 Oklahoma, 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.
  • Oklahoma 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 Oklahoma 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 Oklahoma 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 Oklahoma 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

There are no state-mandated labor rules in Oklahoma. The state adheres to federal standards that protect employees from discrimination and assure the payment of wage, adequate overtime compensation, the right to leave of absence, etc. The Fair Labour Standards Act governs the rules pertaining to employee rights.

  • The current federal minimum wage in the United States is $7.25 per hour. The minimum wage rate applies to all employers and employees in the State of Oklahoma sunless they are exempted by specific Federal or State law.
  • Employers are prohibited from discriminating against and retaliating against employees in a range of protected classifications under Oklahoma law.
  • There are rules in Oklahoma that govern the minimum wage and child labour.
  • The Occupational Safety and Health Act mandates all companies in Oklahoma to maintain a reasonably safe working environment for their employees.
  • Oklahoma employers must pay final wages after an employee’s employment terminates.
  • Employers must display approved posters at their workplaces including information about minimum wage and overtime regulations, and other labour laws.
  • Business LLCs should ensure to legally comply with every labour standard established under Federal legislation and State enforced laws.

Structure of Wages Of Employees

The State of Oklahoma does not have any special labor regulations and is guided by federal laws. Following below, we have mentioned the key provisions that structure the employee wages in the State.

Oklahoma Minimum Wage

Employers in Oklahoma are subject to federal standards. They must pay their employees a basic minimum wage at the rate of $7.25 per hour. A certain class of employees falls under an exception to the minimum wage rule.

  • Tipped Employees: The current tipped minimum wage in Oklahoma is $3.63. The state’s tipped minimum pay is set at 50% of the state’s normal minimum wage. When tipped employees’ wages are coupled with their tips, employers must ensure that they are paid the normal minimum wage amount.
  • Student Learners: Students who are undergoing studies along with work opportunities should be paid at least 85% of the minimum wage paid to the regular employees, i.e., $6.16 per hour for up to 20 hours of work in a given week with an employer.
  • Trainees: Employees under the age of 20 years undergoing their training with an employer should be paid at the rate of $4.25 per hour for the initial 90 days of the employment.

Oklahoma Overtime Wage Rate

In Oklahoma, employers must pay the eligible employees who work for more than 40 hours in a week, compensation at the rate of 1.5 times their regular hourly rate for the total number of extra hours.

Youth Labor

When school is in session, children of 14-15 years may work a maximum of 18 hours a week. And no more than 3 hours every day. When school is not in session, young children are allowed to work up to 40 hours every week and 8 hours per day. Minors up to 18 years of age are not permitted to work in underground mines or in facilities that sell or dispense low-point beer for on-premises consumption.

Oklahoma Employee Rights

Federal and state laws protect the employee’s rights during their jobs in Oklahoma. The laws aim to protect the employees and offer them protection and rights through regulations. On similar grounds, the State offers certain rights to the employees in Oklahoma.

Anti-discriminatory Rights

As per the Oklahoma Anti-Discrimination Act (OADA), employers are prohibited from discriminating on the basis of protected characteristics such as race, color, creed, caste, religion, nationality, sex, disability, etc.

Equal Pay

Employers in Oklahoma are prohibited from paying female employees less than male employees for comparable work on jobs with comparable requirements relating to skill, effort, and responsibility unless the payment is made on the basis of seniority, merit, a system that measures earnings by quantity or quality of production, or factors other than sex.

Organisational Safety

Oklahoma employers under the Occupational Health and Safety Standards Act are responsible for setting the minimum standards for the safety of their employees and it requires employers to comply with the standards and maintain safety for their employees.

Whistleblower Protection

Oklahoma protects whistleblowers from retaliation by the employers under the Occupational Safety and Health Act (OSHA) and another under more general violations of law, policy, or the public trust. Violations of both statutes are punishable by law.

Right to Take Leave

Employers shall allow their employees time off for military service, jury duty, election voting, or family and medical leave. Employees’ group health benefits shall not be terminated while on family and medical leave, and they have the right to come back and continue with their old positions after the leave time has ended.

Final Pay

Employers must pay employees who have left their jobs for whatever reason (including being fired, suspended, laid off, or quitting) their final payment by the following scheduled payday, according to Oklahoma law.

How to Hire Employees Fast in Your Oklahoma LLC

One of the most common questions we get is: How to hire employees fast in your Oklahoma LLC? There are a number of different ways you can do this, including by hiring a single member or a small team. But which option is right for you? Here are some tips to help you decide. In Oklahoma, an LLC must have a federal employer identification number. This number is required by law, and is helpful in reporting taxes to the IRS.

When hiring employees in Oklahoma, be sure to get the appropriate paperwork in order. You’ll need workers’ compensation insurance, and you’ll need to display the necessary posters. Additionally, you’ll need to report new employees to the state Workforce Commission. Finally, you’ll need to set up a payroll system. You can do this yourself or outsource the task to a payroll service. But remember to comply with all the laws, because it’s not always simple to do it on your own.

Once you’ve completed your business’s registration paperwork, you can begin hiring employees. If you’re new to the business, you may want to consider hiring an agent to help with paperwork. While it’s tempting to be the registered agent, it may be the wrong choice. If you’re new to the business, you may want to consider hiring an employee. However, it’s also important to be aware of the regulations related to licensing.

FAQs

What Is an LLC?

An LLC is a business entity that can be treated as either a corporation, a partnership, or a sole owner business.

Is the LLC liable for damages caused by employees?

The owners of the company are not personally liable for the actions of the employees, the LLC is liable for any such actions.

What is the IRS Form I-9?

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.

What is LLC self-employment?

LLC members, or LLC owners, are self-employed according to the IRS because they pay themselves through the earnings of LLC.

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.

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