Discover essential pay stub best practices for employers. Ensure accuracy, compliance and employee satisfaction with our comprehensive guide.

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Learn about the Form-9 compliance violations that can be very costly, but easily avoidable if you follow best practices and automate I-9 verification.

Discover the importance of pay transparency laws in the workplace and stay informed about the latest equal pay and workplace fairness laws.

Manage poor performance and misconduct to lower unemployment costs. Discover the best practices to ensure compliance and lower expenses.

Today’s modern workforce values transparent and equitable workplaces where they feel their values and beliefs align with those of their employer. One of the primary areas where workers are advocating for transparency centers around pay. Pay transparency is a common phrase, but what is pay transparency? In this guide, we’ll walk through why pay transparency is important, including the benefits of pay transparency, how to draft a pay transparency policy statement, tips for ensuring pay statement compliance, and more.  What Is Pay Transparency?  Pay transparency refers to the practice of employers openly sharing information about their organization’s compensation structure. Through pay transparency, employers disclose how much employees are paid for their work by ensuring salary and wage data are accessible to all employees and, in some cases, the public. However, pay transparency can vary by organization, as no set rule defines the parameters of pay transparency, and pay transparency laws differ by state. For example, employers in some states might be required to disclose pay information about all employees to employees and the public. In contrast, others may require employers to disclose pay information to employees upon request.  In addition, employers can implement their own pay transparency guidelines on top of those required by the state in which they operate. Some employers may make promises regarding pay scales to ensure fair and equitable pay within their organizations, as doing so can help strengthen their brand identity and trust among their employees, candidates and customers. In other cases, online databases might also contain large swaths of pay information gathered by internal and external sources that can help current employees and candidates understand a company’s pay practices.  By understanding what pay transparency is and the varying degrees, employers can ensure they remain compliant and instill best practices that cultivate a workplace built on trust.   Pay Transparency vs. Pay Equity  Pay transparency is a common buzzword tossed around in the workplace that refers to employers disclosing information on employee salaries and wages. However, this term is often confused for another: pay equity. While pay equity shares similar objectives as pay transparency, it differs in several ways. Pay equity ensures employees who perform equal work deserve equal pay, regardless of race, gender, age or other protected characteristics, to eliminate wage gaps and ensure fairness. Alternatively, pay transparency is a practice that employers can use to ensure pay equity.  One of the primary objectives of pay equity is to identify any disparities in pay between different groups of employees, such as racial wage disparities or gender wage gaps. Two key pieces of legislation to address pay equity were the Equal Pay Act of 1963 and the Civil Rights Act of 1964. Together, these laws worked to address gender-based pay discrimination and racial discrimination in the workplace more broadly. For example, Title VII of the Civil Rights Act prohibited discrimination based on color, religion, race, sex or national origin in employment practices while establishing the Equal Employment Opportunity Commission to enforce these provisions.  While these two pieces of legislation paved the groundwork to combat pay equity and discrimination in the workforce, challenges continued to persist, as some employers either subconsciously or intentionally contributed to inequitable pay practices. Although some employers continue discouraging employees from sharing pay information, significant advancements have been made to encourage more equitable compensation practices.  The Power of Pay Transparency  Understanding why pay transparency is important can help employers practice equitable pay. There are several key benefits of pay transparency, including:  Fairness: One of the top benefits of pay transparency is fairness, as it helps ensure employees are compensated for their work, giving them a clear understanding of how pay decisions are made.  Motivation: By understanding compensation practices, employees can be more motivated to work harder. Clear paths for salary progression can boost morale and overall job satisfaction.  Trust: Pay transparency is a great way for employers to instill trust within their workforce, as it helps employees believe that pay decisions are based on objective criteria, increasing employees’ confidence in leadership. Recruitment and retention: A key benefit of pay transparency that shouldn’t be overlooked is its ability to increase recruitment and retention of top talent. Pay transparency makes it easy for job seekers to assess whether a company offers competitive pay while also making current employees more likely to stay due to their understanding of being paid fairly.  Employers can reap these benefits by drafting a clear and concise pay transparency policy statement. Your pay transparency policy statement should be included in your employee handbook that workers can easily access. The statement should communicate your organization’s philosophy, values and policies regarding pay transparency to employees, job seekers, and the public, and consider legal and regulatory requirements. Your pay transparency policy statement can include salaries or salary ranges for roles, as well as your commitment to fairness, feedback and equal employment.  3 Ways to Implement Pay Transparency in Your Business  Now that you understand why pay transparency is important, knowing how to implement transparent pay practices in your business is crucial. From offering accessible pay statements to maintaining compliance, privacy and security, you can create a foundation built on trust. Explore some ways you can implement pay transparency in your organization below.  Accessibility: Making Pay Statements Work for You  One of the first steps in implementing pay transparency is making pay statements accessible to employees. Easy access to pay statements allows employees to review their record of earnings in a clear and concise way. Pay statements should include key information, such as how much they earned for a specific pay period, including gross and net pay, as well as deductions like taxes and benefits like healthcare.  There are several ways to increase the accessibility of your pay statements. Through pay statement management, you can customize the format of your pay statements in several ways, such as offering pay statements in different languages and breaking down pay information for specific employee groups.   Another crucial way to increase the accessibility of your pay statements to promote pay transparency is digitizing your pay statements. Through online employee portals, employees can easily access their pay information at their fingertips, whether on a desktop or on-the-go through their mobile devices. With text and email alerts, employees can be notified when a pay statement is available.  Navigating Pay Statement Compliance  Another important way to increase pay transparency in the workplace is by remaining compliant with state and federal regulations. Employers need to be aware of important legal requirements and compliance considerations related to pay statements. Maintaining compliance can instill trust in your employees, job seekers, and the public by demonstrating your commitment to transparent compensation practices.  Pay statement compliance varies by state, so it’s important to familiarize yourself with your state’s legislation. However, most pay statements are legally mandated to require certain information, including:  Employee name and identification number  Pay period covered  Payment date  Gross pay Hours worked (if applicable)  Net pay  Deductions  Overtime pay (if applicable)  Employer and employee contributions to retirement plans (if applicable)  Paid leave balances/accrual (if applicable)  Through regular compliance audits, you can ensure your pay statements comply with all federal and state laws.  Additionally, while there are several federal pay equity laws, there are no federal pay transparency laws that organizations need to abide by. However, several states have recently enacted pay transparency laws, such as California, Colorado, Connecticut, Maryland, Nevada, New York, Rhode Island and Washington, with more states proposing pay transparency legislation.  Privacy and Security Concerns  Our final tip on implementing pay transparency in your workplace is addressing privacy and security concerns. Pay statements include sensitive financial information that some employees may want to be protected. To safeguard sensitive information, store pay statements and employee data using secure servers with access controls and encryptions. Regular security audits can also help assess risk and identify vulnerabilities in your pay statement systems. Lastly, educate your employees about privacy and security measures that your organization instills to protect their pay information and to encourage them to report suspicious activities.  Achieving More Transparency and Accessibility With Experian Employer Services  Pay transparency is crucial for many reasons, from improving employee retention and recruitment efforts to ensuring fairness within the workplace. With Experian Employer Services, our pay statement services can help provide universal access to all pay statements, making it easy for employees to view current and past pay statements when needed. Explore our workforce management solutions today to see how we can improve efficiency and the employee experience.

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Noncitizens applying for naturalization can now use a new version of Form N-400 to request an unrestricted original or replacement SSN card.

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The Form I-9 consists of two main sections: Section 1 is completed by the employee and Section 2 is completed by the employer after examining the employee's original documents. These documents, from the list of Form I-9 acceptable documents, are one document from either List A or List B and one document from List C.

Proper completion and processing of Form I-9 has been of the highest importance for every employer ever since the Immigration Reform and Control Act mandated its use in 1986. Known as the Employment Eligibility Verification Form, this document serves to verify the identity and employment eligibility of every new employee hired to work for U.S. employers.

DHS, in tandem with the DOJ, released joint guidance pertaining to employers who either use a “home-grown” electronic I-9 system, or contract to use a platform supplied by an I-9 vendor.

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As federal and state legislative sessions unfold, employers find themselves navigating a dynamic landscape of potential changes to unemployment taxes. This year, like many before it, has seen a flurry of activity with over 100 bills in various stages of consideration since January 1, 2024.  Addressing Trust Balances and Solvency  A recurring theme in these bills is the allocation of funds for state unemployment trust balances and programs. Across 10 states, legislation is under discussion proposing appropriations ranging from $2 million to nearly $90 million for bolstering respective unemployment insurance programs. This is particularly crucial for states with precarious trust fund balances that may not withstand economic downturns. According to the 2023 State Unemployment Insurance Solvency Report by the United States Department of Labor, only 16 states met the recommended minimum solvency standard by the end of 2023, unchanged from the previous year. Prior to the pandemic, this number stood at 31 states highlighting the significant impact of the pandemic. The risk of insolvency looms large for states ill-prepared to handle increased claims during recessions.  Facing potential insolvency, states may resort to requesting advances via Title XII loans from the federal government. However, this solution comes with the obligation of repayment as evidenced by the experience of two states and one territory mentioned on the 2023 Federal Form 940, all of which lost a portion of their FUTA credit due to outstanding loans.  Other Hot Topics: Labor Disputes, Weekly Benefit Amounts and Fraud  The payment of benefits during labor disputes is another pertinent topic in recent legislative agendas. With labor disputes increasingly making headlines and disrupting economies, legislators in 10 states are deliberating on the current disqualification of unemployment benefits for claimants involved in such disputes. If proposed legislation passes, employees involved in labor disputes would be eligible to receive unemployment benefits. While this may not directly impact all employers, it could significantly affect tax account funds for those embroiled in labor conflicts.  Legislators are also addressing claimant weekly benefit amounts and work search requirements to ensure accountability and prevent misuse of benefits. This includes initiatives to verify claimants' efforts in seeking employment such as following through with interviews and maintaining communication with prospective employers.  Data integrity and fraud prevention remain key areas of focus. With fraud reaching alarming levels during the pandemic, states are taking proactive measures, aided by grants from the American Rescue Plan Act, to modernize their unemployment platforms and enhance detection capabilities.  Several bills passed both state-level houses and senates and are eligible to be sent to respective governors for signature.  Below are those states along with a synopsis and link to the bill:  Colorado – HB 1189   This measure appropriates $76,527,050 for program costs related to unemployment insurance.  New Mexico – HB 2 This measure appropriates $13,846,600 for unemployment insurance to administer an array of demand-driven workforce development services to prepare New Mexicans to meet the needs of businesses. These measures would more-so benefit claimants and their ability to file claims quickly and efficiently.    Utah – HB 170 This measure addresses multiple issues:  Claimant would be disqualified from receiving unemployment benefits if they fail to appear without good cause for a scheduled interview for suitable work.  Claimant’s failure to accept within two days after the date the offer was sent, an offer of suitable work from an employer or the employment office as failure to accept suitable work.  Develop and maintain a website for employers to access information and report potential fraud related to unemployment insurance claims.  Virginia – SB 542 This measure makes an amendment to the VA Unemployment Compensation Act regarding labor dispute disqualification. It provides that a lockout by an employer will not constitute a labor dispute and locked out employees, who are otherwise eligible, will receive unemployment benefits unless one of the following occurs:  Recognized or certified collective bargaining representative of the locked out employees refuses to meet with the employer under reasonable conditions to discuss issues giving rise to the lockout.  There is a final adjudication under the federal National Labor Relations ACT (NLRA) that such representative refused to bargain with the employer in good faith.  The lockout is the direct result of such representative’s violation of an existing collective bargaining agreement.    Effective July 1 after enactment.  In the ever-evolving landscape of unemployment law, staying abreast of statutory changes is essential for managing costs effectively. Stay tuned for more insights on this and other pertinent topics. 

It has been almost four decades since the Immigration Reform and Control Act was introduced in 1986. Yet, many employers still have trouble understanding the importance of avoiding common Form I-9 compliance violations. These violations can have a serious impact on a business, and there is a broad range of Form I-9 compliance violations resulting from negligence. The penalties the U.S. Immigration and Customs Enforcement (ICE) can impose for even the most benign can be very costly and detrimental to employers. For industries that typically employ a large number of immigrants, but even for small businesses, immigration compliance is a business necessity. To prevent costly errors, improve I-9 administration and minimize the risk of violations in future operations, every organization should seek to establish a detailed and comprehensive policy and adhere to it.  In February 2024, the Department of Homeland Security (DHS) released increased fines for Form I-9 civil penalties to account for annual inflation. The new fines are effective for Form I-9 penalties assessed after February 12, 2024, for associated violations that occurred after November 2, 2015. To avoid Form I-9 fines, employers need to be aware of the recent adjustments: The penalties now range from $281 to $2,789 (previously $272 to $2,701) for the paperwork violation (per relevant individual) The penalty for the first offense for unlawful employment of aliens has increased from $676 - $5,404 to $698 - $5,579, per unauthorized alien. The penalty for the second offense for unlawful employment of aliens has increased from $5,404 - $13,508 to $5,579 - $13,946, per such alien. The penalty for the third offense for unlawful employment of aliens has increased from $8,106 - $27,018 to $8,369 - $27,894, per such alien. The violation relating to employer’s failure to notify of Final Nonconfirmation of employee’s employment eligibility has increased from $942 - $1881 to $973 – 1,942, per relevant individual. The penalty for unfair immigration related employment practices has increased from $557 - $4,465 to $575 - $4,610 for the first order, per discriminated individual to $6,913 – $23,048 for third and subsequent offense. The fines for unfair documentary practice have increased to $230 - $2304, per individual discriminated against. Whereas the penalty for document fraud can vary anywhere from $575 - $11,524 per document pursuant to 8 U.S. Code § 1324c (a) (1) – (6) on whether it’s first or subsequent offense. On average, 65%-75% of the I-9s audited have one or more errors. For example, the proposed fine for an employer with 1,000 I-9s that is found to have 65% error rate (i.e. 650 I-9s) with substantive errors would face a potential fine of over $1.8 million (650 x $2,789 = $1,812,850). Taking into account that any mistakes made in filling out and filing Form I-9 can be even more costly than before, employers need to adhere to the necessary rules and procedures. To avoid Form I-9 fines, they should regularly assess their organization’s hiring processes, retention and storage policies, fully understand the types of Form I-9 violations and lawfully correct any errors if the need arises. How to Take Proactive Measures to Avoid Form I-9 Fines ICE actively conducts worksite enforcement audits and if employers fail to complete, retain or make Form I-9 available for inspection, the punishments imposed can result in significant penalties. Therefore, to avoid Form I-9 fines, employers are encouraged to take proactive measures, develop proper procedures and perform regular self-audits. On the other hand, employers who fail to do this or to properly train and supervise the preparation and maintenance of Form I-9 expose themselves to sizable risks by making common I-9 mistakes. While some errors may be corrected, employers can avoid Form I-9 fines and significant expenses by developing internal procedures to ensure that every form is properly completed, verified, maintained and readily accessible. To simplify this and transform hiring compliance into a highly efficient and reliable operation, they can automate Form I-9 administration, convert paper documents to compliant electronic forms, filter outdated files, remediate errors and avoid costly Form I-9 penalties. As a result, employers replace the risks and expenses of outdated, obsolete I-9 processes in favor of smarter, faster and more reliable Form I-9 management and compliance. Complete Form I-9 properly, save time on the review process, and ensure compliance during the hiring process while meeting United States Citizenship and Immigration Services and ICE regulatory mandates.