Due to the recent minimum wage and hour law legislation
The Department of Labor (DOL) announced as well as the efforts to combat tax evasion in the 2017 U.S. Federal budget, Qualcomm Inc. would like to show that we are committed to making the right decisions by changing the laws and regulations within our company. Any company or business with 26 or more employees must comply with the new DOL rule are required to minimum wage of $10.50 per hour while those with 25 employees or less should implement the increase in 2018. However, increase in the minimum wage is expected in the future based on the Consumer Price Index (CPI). The combatting of tax avoidance in the Budget requires the CRA to hire more auditors on tax and to improve the internal risks assessments in organizations.
Wage and Hour Law
Since Qualcomm Inc. company has more than 30,000 employees, there is a need for the human resource (HR) department to effect the changes immediately. The management should put the technologies required and the processes in place for the HR to assess the cost of payroll, reclassify the workers, communicate the changes to all the employees and where necessary, seek professional advice. The HR will also be tasked to inform and direct all the employees at Qualcomm Inc. on how to post the new minimum wage orders (MW-2017). The management should note that failure to review the wage and hour obligations before July 1st, 2017 will lead to massive fines and penalties by the DOL. However, if employers challenge the commissioner of labor with a verdict that they failed to pay the new minimum wage, an equal bond to the minimum wage must be posted with exclusion of the penalties and fines to be paid. Additionally, the management should take note that the new minimum wage increase will be effective on other payment practices for example overtime rates for all employees.
Tax audits
On tax audit, all the departments in the organization should prepare its employees to frequent external tax audits and should perform regular internal audits. The HR department is required to inform all the employees on this federal move to combat tax avoidance for them to be updated on the scheduled dates of audits. The management should be prepared to comply with the overall tax costs required. The tax audit is a continuous process for the next five years.
Close
We are confident that our employees will appreciate the move to review their wage and working hours according to the DOL legislation because it is for their benefit. Additionally, we are positive that our organization will not be pushed around on tax avoidance since we will comply with the federal change issued by the government. Pamphlets will be provided in our stores with the same information, to be updated periodically.
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