Question

BUSINESS LAW

EMPLOYMENT LAW

8. Now, name 4 things that the IRS requires that employers do.

9. What is the purpose for unemployment laws, and who pays unemployment tax? What happens when the state unemployment insurance fund runs out of money?

10. What is the purpose for workers compensation laws? What happens to an employer who does not have workers comp insurance when an employee is hurt at work?

Answer 1

Business Law

Business law is body of law which governs business and commerce and is often considered to be a branch of civil law and deals both with issues of private and public law. It is also known as commercial law. The law regulates corporate contracts, hiring practices, and manufacture and sales of consumer goods.

It can also be defined a collection of legal requirements around forming, dissolving, and engaging with a business. It deals with the creation of new businesses and also the issues that arises as businesses interactwith the public.

Business Law governs the world of commerce.

List of Indian Business Laws-

The Indian Contract Act, 1872 - I

The Indian Contract Act, 1872 - II

The Sale of Goods Act, 1930

The Indian Partnership Act,1932

The Limited Liability Partnership Act, 2008

Companies Act. 2013

Employment Law

The collection of laws and rules that regulate relationships between employers and employees. The law says when an employer can hire employees and when the employees can work. The law covers what an employer must pay the employee for their work. They create minimum requirements for working conditions for employees.

Companies of all sizes must follow employment law. They depend on employment lawyers to tell them what they need to do in order to comply with the law. Employment lawyers assist clients with persuing enforcement or a remedy when there's a violation of the law.

Some of Employment Laws in India-

One Hour Rest Per Six Working Hours

Maximum 200 Hours Can Be Overtimed

100% Premium Pay For Overtime

Dismissal Due To Closure

Minimum Wage Of Rs 6000

4 Things That IRS Requires That Employers Do-

What Does The IRS Do?

IRS founded in 1862, the Internal Revenue Service is a U.S. federal agency responsible for collection of taxes and enforcement of tax laws. Most of the work of the IRS involves income taxes, both individual and coroporate.

1. W-2 FORM

Its the "WAGE AND TAX STATEMENT". The IRS requires employers to report wage and salary information. Employers do that via form W-2. Emplyers are legally required to send copies of your W-2 form to the IRS.

2. FUTA RETURN

This is also known as UNEMPLOYMENT TAX. Employers are required to file FUTA return annually, and depositing those taxes.

3. Social Security and Medicare (FICA TAXES)

All US employers must deduct FICA taxes from paychecks of all employees, and pay employer and employee portions of this tax. The rate of tax is 6.2% each of gross pay for both employees and employers making it a total of 12.4%.

4. Federal Income Tax Withholding

All employers are required to withhold federal income tax from employees. The amount of tax is determined by W-4 form.

Purpose Of Unemployment Law

Unemployment Law - It was established during the great depression as a part of the Social Security Act of 1935. The laws are designed to temporarily fulfill unemployed workers' most basic needs so that they can provide for them and their families while they actively persue new, gainful employment. Their is a category of taxes paid by all the businesses to their on behalf of every worker as "UNEMPOYMENT TAXES". The benefits are generally given to those to those registering as unemployed.

Purpose-

To Provide Financial Temporary Financial Assistance To Unemployed People

Cash Benefits For The Declared Unemployed People

To Distress Jobless Workers and Their Families

Stimulating Economic Activity and Job Creation

To Distress Recession Times

Employers are fully responsible. Unlike other salary deductions, employees do not contribute to unemployment tax payments. Businesses make payments for FUTA through their federal payroll tax contributions. For SUTA, through state payroll tax contributions.

What happens when state unemployment insurance fund runs out of money?

Individual states can borrow from the Federal Unemployment Account.

Workers Compensation Law

It is a system of rules designed to pay the expenses of employees who are harmed while performing job related duties. Employees can recover lost wages, medical expenses, cost associated with retraining and rehabilation. The system is administered by state goverment, and financed by mandatory employer contributions.

Purpose

Compensation of employees injured while performing job duties

Insurance coverage of employees

Employers responsibilities towards employees

Time saving and Systematic process for harmed employees

Employee Satisfaction

If the employee is hurt in while performing job duties and the employer does not have workers compensation insurance-

The employer will face penaties according to the state.

The harmed employee has the right to file a case against employer.

The second injury fund is responsible for only the medical bills in this situation but not for any disabilities permanent or temporary.

Employer will be treated as fraud in the eyes of state goverment.