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Arlington Heights business law attorneyIn today’s American economy, there is a dramatic difference between unemployment and underemployment. Unemployment, generally speaking, is tracked by government watchdog groups as an indicator of economic growth and usually takes into account those who are not currently working but are looking for jobs. Underemployment, by comparison, is much more difficult to quantify and refers to those who may be working but who are still having trouble making ends meet.

Temporary workers—also known as temps or day laborers—are often considered to be among the underemployed. On any given day, they may have jobs, but those jobs are not guaranteed and can quickly disappear. In an effort to help protect the rights of temp workers, Illinois lawmakers recently passed a measure that requires temp agencies to be more forthcoming about the type of work a temp will be doing and more aggressive about placing temps in permanent positions.

The Role of Temp Agencies

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Arlington Heights employment law attorneys, tax withholding, record-keeping lawsWhen business is booming and you know you need to hire someone to fill the gap, it is easy to get excited. However, you cannot let that excitement cloud your judgment. There are critical employment law specifics you need to know before hiring your first employee. Some of the most critical relate to tax withholding and record-keeping requirements.

Preparing for the Hiring Phase

Before you can hire an employee, you must first obtain an employer identification number (EIN). This number is used for tax reporting purposes, and it is required for submitting certain documents to the Internal Revenue Service (IRS). You also need it to report information about your employees to the state. In addition, keep in mind that you will need to keep records of employment, tax withholding, deductible expenses, and other financial and employment-related information for a minimum of four years.

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