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This bit of payroll trivia that is good to keep in the back of
your mind in the event your company in interested in taking
advantage of the great minds that are just coming out of our
schools.
Do Interns had a right to "fair pay - minimum wage"?
If you’re Interns do not meet the following criteria, then the
intern is considered an employee and minimum wage and overtime
rules and other regulations apply! Bottom line - The
training the intern receives must be for the benefit for the
Intern not the employer.
1. Both the Intern and employer understand that there is no
job promised at the end of the internship. If the intern
believes that the internship is a trial period, then the
intern will be considered an employee
2. If the intern is substituted for a regular employee, or
hired to augment the existing workforce during busy seasons
then the
intern will be considered an employee. Providing internships
even during slow periods is important!
3. If the intern performs the routine work of the business on
a regular and recurring basis, then the intern will be
considered and
employee. The goal is to provide the intern with an academic
experience by providing the individual with skills that can be
used
in multiple departments of the business.
4. The internship is for the benefit of the intern, not the
employer
5. The intern should be closely supervised and mentored, more
so than regular employees. Through supervision, the experience
more closely resembles an training environment.
6. Both the intern and the employer understand that the intern
is not entitled to wages for the time spent in the internship.
In this economy it seems like a win/win to hire an intern. The
intern will have a much easier time of finding employment
while sharpening his/her skill set. You might consider hiring
your intern though a local school / college so they receive
class credits for the time spent in your organization which
further supports the "for the benefit of the intern"
requirement.
For official Documentation visit the department of labor
official release
http://www.dol.gov/whd/regs/compliance/whdfs71.pdf
Our website is chock full of payroll
and tax information. Bookmark the following pages
Payroll taxes and employee management
for QuickBooks Users
Rates and limits for FICA, Pension,
Mileage, Depreciation, Income Taxes, and much more!
Interested in learning more about
QuickBooks Payroll or have questions about paying interns?
We offer QuickBooks Payroll training Or we can do your payroll
for you! Call us 800-216-0763 we have QuickBooks
Guru CPAs on staff to help you make your buying decision!
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