15 mar employer liability for unemployment taxes 5

What is an Employer? Definition and Key Responsibilities

The employer holds the authority to direct and control how work is completed, including setting expectations, providing resources, and establishing workplace culture1 2. This control is a defining feature of the employer-employee relationship. Companies usually terminate employment for a reason, such as poor performance or position elimination, but legally they aren’t required to have a reason because of at-will employment.

Employer vs. Contractor: Understanding the Difference

Calling a worker a contractor but treating them as an employee is called misclassification. Generally speaking, if the entity or individual paying you directs when, where, and how you work, you may be an employee. Employers include everything from people hiring a babysitter to governments and businesses which may hire many thousands of employees. In most western societies governments are the largest single employers, but most of the work force is employed in small and medium businesses in the private sector.

Employers pay wages or a salary to the workers in exchange for the worker’s work or labor. Exempt employees receive the same salary each pay period regardless of the number of hours they worked. Employers can’t dock the wages of an exempt employee who goes home early, for instance.

Elevate your global hiring and payroll

Ontop’s global payroll solutions simplify these processes, ensuring businesses remain compliant across 150+ countries while offering instant USD payments and robust documentation management. Unless there is a specific contract in place, employees in 49 of the 50 states are employed at-will. This means employees can quit at any time and the employer can fire them at any time for any reason.

Conclusion: The Employer’s Role in a Global Workforce

If you’re working as a contractor but think you’re misclassified, contact the federal Department of Labor, state labor department, or a local employment attorney for assistance and advice. Employers are required to withhold federal, state, Medicare, and Social Security taxes for their employees. Employees also have certain protections, including the right not to be harassed or discriminated against due to race, religion, sex, gender identity, national origin, disability, and age. It calls for governments, employers, and workers to co-operate to develop adaptation strategies. It can direct the work of its employees, including dictating where, when, and how work is completed. For example, a tech startup hiring software engineers on a full-time basis, providing them with equipment, and setting project deadlines is acting as an employer.

How to Run a Remote Business

Their responsibilities span legal compliance, payroll, health and safety, and employee well-being. As remote work and international hiring become the norm, employers need reliable partners and robust tools to meet these demands. Ontop’s global payroll solutions and workforce management platform empower employers to hire, pay, and support talent anywhere in the world—compliantly and efficiently. To learn more about how Ontop can help your business meet its employer responsibilities, explore our platform or connect with our team today3. Many employers offer employees a comprehensive employee benefits package, including health insurance and paid time off, holidays, and vacation. Ontop simplifies global hiring with transparent pricing and full compliance support.

• If the employee is paid a set rate for a month, then the money they earn is called their salary.
• To him it seems clear that potential employers are using AI tools to automate the simpler parts of coder’s work, tasks which would traditionally allow newcomers to build up experience.
• Employers have significant legal responsibilities that go beyond simply hiring and paying workers.
• According to a 2024 report by Gartner, 58% of companies now employ remote or hybrid teams, highlighting the need for clear employer roles and robust global workforce management software.
• Exempt employees receive the same salary each pay period regardless of the number of hours they worked.
• When employers hire employees, they are classified as either exempt or nonexempt.

Hiring Exempt and Nonexempt Employees

The term “exempt” refers to being exempt from the overtime provisions of the Fair Labor Standards Act (FLSA). To be classified as exempt, employees must meet standards that involve more than just receiving a salary rather than hourly pay; it also involves the type of work done by the employee. There are exemptions for executive, administrative, professional, computer, and outside sales employees. Employers have significant legal responsibilities that go beyond simply hiring and paying workers. These obligations are designed to protect employees and foster a fair, safe, and inclusive workplace 3.

When employers hire employees, they are classified as either exempt or nonexempt. For example, an employer may hire an employee for $60,000 per year to supervise the quality department. An employer has certain responsibilities that are required by law, including paying taxes that self-employed people pay themselves. An employer is an individual or organization—public, private, nonprofit, or business—that hires people to perform specific tasks or services under a formal or informal agreement 1 2.

Whether you’re paying international contractors or building a remote team with EOR, our platform ensures fast, secure, and scalable payroll in 150+ countries. Employers are the backbone of every workforce, employer liability for unemployment taxes shaping not only the structure of organizations but also the experience of employees worldwide. As global hiring accelerates and remote work becomes standard, understanding what it means to be an employer—and the responsibilities that come with it—has never been more important.

• These obligations are designed to protect employees and foster a fair, safe, and inclusive workplace 3.
• In most western societies governments are the largest single employers, but most of the work force is employed in small and medium businesses in the private sector.
• It can direct the work of its employees, including dictating where, when, and how work is completed.
• It said changes the government has already made to employer National Insurance, higher employment costs and the introduction of a new packaging tax had added £7bn in new costs to retail businesses.
• The term “exempt” refers to being exempt from the overtime provisions of the Fair Labor Standards Act (FLSA).
• Employers are the backbone of every workforce, shaping not only the structure of organizations but also the experience of employees worldwide.

Employer Responsibilities in a Remote-First World

Employers can’t terminate an employee for a reason that violates equal opportunity employment laws, though. If they do, the terminated employee has the right to file a Charge of Discrimination with the Equal Employment Opportunity Commission and their state or local fair employment practice agency. Two weeks’ notice may not be required or even recommended, though, depending on the nature of the work and the employer. Some employment contracts specify the amount of notice employees are required to give. Some employers use job offer letters to confirm the details of an employment relationship. In union-represented workplaces, the employer is obligated to follow the terms of the union-negotiated contract.

According to a 2024 report by Gartner, 58% of companies now employ remote or hybrid teams, highlighting the need for clear employer roles and robust global workforce management software. If the employee is paid by the hour, then the money the employee earns is called their wage. If the employee is paid a set rate for a month, then the money they earn is called their salary. People with a salary are typically not paid more for more hours worked than the minimum. Some companies want to use contractors so that they don’t have to provide health insurance or pay employer-side taxes, but contractor positions must meet strict qualifications.