By Travis Ward
As I struggled to come up with a topic to write on, I was asked the question: how often am I required by law to run a payroll? So thanks to the individual who asked this question, because that is the question I will answer in this article.
The IRS issues no guidelines on this topic and has instead left this up to the individual states. For the purpose of this article I will address Utah’s Wage Payment Laws. If you have a question about another state, please feel free to contact us and I will be happy to answer your question.
Utah law states that all employers must pay at least Semi-Monthly or Bi-Weekly for hourly employees and Monthly for salary employees. With the exception of the following types of employers, state and local governments, and employers engaged in farming, dairy, agricultural, viticultural, or horticultural businesses, stock or poultry raising, or household domestic service, or where an employer-employee agreement provides for different terms of payment. Utah law also states that on a Semi-Monthly or Bi-Weekly pay cycle, you must pay no later than 10 days after the pay period ends. On a Monthly pay cycle you must pay no later than 7 days after the pay period ends. If an employer hires an employee on a yearly salary basis, the employer may pay the employee on a monthly basis by paying on or before the seventh of the month following the month for which services are rendered. If a payday falls on a Saturday, Sunday, or legal holiday, an employer shall pay wages earned during the pay period on the day preceding the Saturday, Sunday, or legal holiday.
Utah can impose a 5% penalty of unpaid wages for up to 20 days, plus attorneys’ fees and costs, to employers who fail to comply along with a misdemeanor conviction.
Here is a link to the Utah Wage Code: http://le.utah.gov/code/TITLE34/htm/34_28_000300.htm.
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