Employers must deposit federal income tax withheld + FICA (employee + employer) either semi-weekly or monthly (based on lookback period). Deposits more than 1–5 days late incur 2% penalty; 16+ days late = 10% penalty. Failure to deposit can trigger 100% Trust Fund Recovery Penalty against responsible individuals personally.
| Req ID | Requirement | Description & Business Rules | Legal Basis | Priority |
|---|---|---|---|---|
| PAY-001 | Federal Income Tax Withholding (FIT) | Calculate and withhold federal income tax per employee based on their W-4 filing status (Single, Married Filing Jointly, Head of Household), pay period, taxable wages, and withholding adjustments declared on the W-4. Use IRS Publication 15-T percentage method or wage bracket method. Tax tables update annually each January. Apply supplemental flat rate (22% or aggregate method) for bonuses and irregular pay. Update withholding whenever employee submits a new W-4 — apply no later than the next payroll period. | IRC § 3402; IRS Pub 15-T | Critical |
| PAY-002 | FICA — Social Security Tax | Withhold 6.2% from employee wages for Social Security. Employer matches 6.2%. Apply to wages up to the annual Social Security wage base ($168,600 for 2024 — updated each January by SSA). Stop withholding once employee's YTD wages reach the wage base. Employer match continues on same wage base. Track YTD wages per employee across pay periods. Social Security tax is reported on Form 941 (quarterly) and Form W-2 (annually). | IRC § 3101; FICA | Critical |
| PAY-003 | FICA — Medicare Tax | Withhold 1.45% from all employee wages for Medicare (no wage base cap). Employer matches 1.45% on all wages. Additional Medicare Tax: withhold an extra 0.9% on employee wages exceeding $200,000 in a calendar year (single) — no employer match on the additional 0.9%. Track YTD wages per employee to determine when the $200,000 threshold is crossed. Notify payroll operator when threshold is reached. Report on Form 941 and W-2. | IRC § 3101; FICA; IRC § 3102(f) | Critical |
| PAY-004 | FUTA — Federal Unemployment Tax | Calculate employer-only FUTA at 6% on the first $7,000 of each employee's wages per calendar year. Employers who pay SUTA on time receive a credit of up to 5.4%, reducing effective FUTA to 0.6% (maximum $42/employee/year). Track YTD wages per employee — stop FUTA once $7,000 wage base is reached. FUTA is an employer cost only — never deducted from employee wages. Deposit when quarterly liability exceeds $500. File Form 940 annually by January 31. | IRC § 3301; FUTA | Critical |
| PAY-005 | State Income Tax Withholding (SIT) | Support state income tax withholding for all 50 states and D.C. Nine states have no income tax (AK, FL, NV, NH, SD, TN, TX, WA, WY) — configure as zero rate. States with flat rates (CO 4.4%, IL 4.95%, MA 5%) and states with progressive brackets (CA up to 13.3%, NY up to 10.9%). Each state requires its own withholding form (CA DE-4, NY IT-2104, etc.). State withholding tables update independently — system must support annual table updates per state without code changes. Local city/county taxes (NYC, Philadelphia, Detroit) configured as additional deduction components. | State Revenue Codes (varies) | Critical |
| PAY-006 | SUTA — State Unemployment Tax | Support State Unemployment Insurance (SUTA/SUI) for all applicable states. Employer-only tax. Rate and wage base vary by state and employer experience rating (claims history). New employer rates assigned by state (typically 2.7%–3.5%). Wage bases range from $7,000 (some states) to $68,500+ (WA 2024). System must allow per-state rate and wage base configuration, updated annually. SUTA is never deducted from employee wages. Track YTD wages per employee per state to stop SUTA once wage base reached. State-specific returns filed quarterly. | FUTA / State UI Laws | Critical |
| PAY-007 | Pre-Tax Benefit Deductions (Section 125) | Support pre-tax deductions under a Section 125 Cafeteria Plan: 401(k) Traditional contributions, health/dental/vision insurance premiums (employee share), FSA contributions, HSA contributions. These deductions must be applied BEFORE calculating FICA and federal/state income tax withholding, as they reduce taxable wages. Reducing taxable wages also reduces employer FICA cost. Pre-tax deductions reduce the W-2 Box 1 (taxable wages) amount. System must apply deductions in correct order: (1) Pre-tax deductions, (2) Taxable gross = gross − pre-tax, (3) FICA on taxable gross, (4) FIT on taxable gross, (5) Post-tax deductions. | IRC § 125 | Critical |
| PAY-008 | Biweekly & Semi-Monthly Payroll Cycles | Support Biweekly (26 pay periods/year, every other Friday), Semi-Monthly (24 periods, 1st and 15th), Weekly (52 periods, for hourly workers), and Monthly (12 periods). FLSA overtime must be calculated on a workweek basis (7 consecutive days) — cannot average hours across biweekly pay periods. For biweekly payroll, a workweek may span two pay periods; OT is calculated per workweek not per pay period. Tax withholding annualised correctly per pay frequency using IRS tables. Different employee groups may use different pay frequencies within the same company. | FLSA; IRS Pub 15 | Critical |
| PAY-009 | W-2 Annual Wage & Tax Statement | Generate Form W-2 data for each employee by January 31. W-2 must include: Box 1 (Federal wages), Box 2 (FIT withheld), Box 3 (SS wages), Box 4 (SS tax withheld), Box 5 (Medicare wages), Box 6 (Medicare tax withheld), Box 12 (401k, HSA, FSA codes), Box 13 (retirement plan checkbox), Box 15–17 (State wages and tax). File W-2s electronically with SSA (Form W-3 transmittal) by January 31. System must retain YTD cumulative data per employee per tax year to produce accurate W-2. Distribute W-2 to employees by January 31 (paper or electronic with consent). | IRC § 6051; IRS Pub 15 | Critical |
| PAY-010 | Form 941 — Quarterly Federal Tax Return | Generate Form 941 source data quarterly (due April 30, July 31, October 31, January 31). 941 reports: total wages paid, federal income tax withheld, FICA employee contributions (SS + Medicare), FICA employer contributions, total deposits made during quarter. Reconciles with tax deposit records. System must produce a 941-ready summary report showing each line item. Correct previous quarters with 941-X (amended return). Semi-weekly depositors must reconcile to Schedule B. System must track aggregate quarterly tax liabilities to advise deposit schedule (semi-weekly vs monthly). | IRC § 6011; Form 941 Instructions | Critical |
| PAY-011 | NACHA ACH Direct Deposit File | Generate NACHA-format ACH (Automated Clearing House) direct deposit file for salary payments. Required fields: company name, company ID, routing transit number (RTN), employee bank account number (checking/savings), account type, net pay amount, employee name. File submitted to company's bank for bulk payroll disbursement. Validate US bank routing numbers (ABA 9-digit format with MOD-10 check digit). Support prenote (zero-dollar test entry) for new bank accounts. No WPS equivalent — NACHA ACH is the US standard for payroll disbursement. | NACHA Operating Rules | High |
| PAY-012 | 401(k) Retirement Plan Administration | Support 401(k) employee deferral (Traditional pre-tax and Roth after-tax) up to IRS annual limit ($23,000 in 2024; $30,500 catch-up for age 50+). Track YTD deferral per employee — block contributions once limit reached. Employer match configuration: most common pattern is 50% match on up to 6% of compensation = 3% employer contribution. Vesting schedules: immediate, 3-year cliff, or 6-year graded. Deposit employee deferrals to plan provider within 7 business days of payroll (small plans). Generate Form 5500 data export annually. Plan must be formally documented (ERISA compliance). | IRC § 401(k); ERISA | High |
| PAY-013 | State Paid Family & Medical Leave (PFML) Deductions | Calculate and deduct state PFML contributions for applicable states. California: SDI tax (employee-only, ~0.9% of wages, no cap). New York: NY PFL (employee-only, ~0.373% up to NY AWW). Washington: WA PFML (employee + employer split, rates set annually). Massachusetts: MA PFML (employee + employer split). New Jersey: NJ FLI/TDI (employee deduction). System must allow per-state PFML rates, wage bases, and employer/employee split configuration. PFML contributions shown on payslip and W-2 where applicable. Rates updated annually by each state agency. | State PFML Laws (CA, NY, WA, MA, NJ) | High |
| PAY-014 | US Payslip (Pay Stub) Format | Pay stub must show: employee name, SSN (last 4 digits only), pay period dates, pay date, hours worked (non-exempt), hourly rate or salary, gross pay, pre-tax deductions itemised (401k, health, FSA, HSA), taxable wages, FIT withheld, Social Security withheld, Medicare withheld, state income tax withheld, any local taxes, post-tax deductions (Roth 401k, garnishments), employer FICA match (shown for reference), net pay. YTD totals for each line. Several states (CA, NY, TX, WA) have strict pay stub content requirements — system must be configurable per state. Delivered electronically via ESS or paper. | FLSA; State pay stub laws | High |
| PAY-015 | Final Pay — State-Specific Timing | Final paycheck timing varies critically by state on termination. Involuntary termination: California = same day; many states = next regular payday. Voluntary resignation: most states = next regular payday. Final pay must include all earned and unused PTO/vacation if state requires payout on separation (CA, CO, MA — mandatory; TX, FL — per company policy). System must alert payroll admin of state-specific final pay deadline when employee separation is recorded. Non-compliance exposes employer to waiting time penalties (CA: up to 30 days additional wages). Configure final pay rules per state. | State wage payment laws (varies) | High |
| PAY-016 | Wage Garnishment Processing | Process mandatory wage garnishments: child support orders (CCPA limits — maximum 50–65% of disposable earnings), IRS tax levies (Form 668-W), state tax levies, student loan garnishments, creditor garnishments (CCPA: max 25% of disposable earnings or amount over 30× federal minimum wage, whichever less). Employer cannot terminate employee for first garnishment order. Multiple garnishment priority rules (child support takes precedence). Track each garnishment order with reference number, issuing authority, withholding amount/%, and balance remaining. Auto-stop when balance fully collected. | Consumer Credit Protection Act (CCPA); Title III | High |
| PAY-017 | 1099-NEC — Independent Contractor Payments | Track payments to independent contractors (1099 workers) totalling $600+ in a calendar year. Generate Form 1099-NEC data by January 31. Contractors are NOT run through payroll — no FICA, no FIT withholding (unless backup withholding applies). Collect Form W-9 from each contractor before first payment. If contractor fails to provide SSN/EIN, apply backup withholding at 24%. Transmit 1099-NEC to IRS via Form 1096 (paper) or FIRE system (e-file). Maintain contractor directory separately from employee master. | IRC § 6041A; IRS Form 1099-NEC | Medium |
| PAY-018 | ACA Reporting (Forms 1094-C / 1095-C) | Applicable Large Employers (ALEs — 50+ FTEs) must file ACA reporting annually. Form 1095-C: provide to each full-time employee by March 1, showing months covered and coverage offer indicator codes. Form 1094-C: transmittal to IRS by March 31 (electronic) summarizing all 1095-C filings. Track each employee's full-time status (30+ hours/week) using the Measurement Period (initial or standard 12-month lookback). Generate variable-hour employee hours tracking report quarterly to determine benefit eligibility. Penalty for not offering coverage: $2,970 × (FT employees − 30) per year. | ACA § 4980H; IRC § 6056 | Medium |
| Req ID | Requirement | Description & Business Rules | Legal Basis | Priority |
|---|---|---|---|---|
| EMP-001 | Form I-9 Employment Eligibility Verification | Every employee hired must complete Form I-9. Employee completes Section 1 (attestation of work authorization) on or before Day 1. Employer completes Section 2 (document inspection and verification) within 3 business days of the first day of employment. Store: document type (List A or List B+C), document title, issuing authority, document number, expiry date. E-Verify submission required for federal contractors and mandated states (AZ, GA, NC and others). Alert HR when temporary work authorization documents (EADs, H-1B approvals) approach expiry. Retain I-9 for 3 years from hire OR 1 year post-termination, whichever is later. Never accept expired documents. | Immigration Reform & Control Act 1986; 8 USC § 1324a | Critical |
| EMP-002 | W-4 Withholding Certificate Storage | Store W-4 data per employee: filing status (Single/MFJ/HOH), multiple jobs adjustment, dependents credit amount, other income, deductions, additional withholding amount. W-4 drives federal income tax withholding computation. Employees may submit a new W-4 at any time — employer must apply changes no later than the first payroll period ending 30 days after receipt. Track W-4 history with effective dates. If no W-4 on file, withhold at Single/no adjustments (highest rate). Store also state withholding forms (CA DE-4, NY IT-2104, etc.) separately per state. | IRC § 3402(f); IRS Reg 31.3402(f) | Critical |
| EMP-003 | Social Security Number (SSN) | Store employee SSN for W-2 reporting, FICA withholding, and IRS correspondence. SSN format: XXX-XX-XXXX (9 digits). Store encrypted at rest. Display masked in UI (e.g., ***-**-1234) — full SSN visible only to Payroll Admin. Required on Form W-2, Form 941, and for E-Verify. If employee does not provide SSN, employer must still file W-2 and indicate missing number — also triggers backup withholding. Validate SSN format (not all zeros, not starting with 000 or 666, not 900–999 range). Do not store in plain text in logs or exports. | IRC § 6109; Social Security Act | Critical |
| EMP-004 | FLSA Exempt / Non-Exempt Classification | Tag each employee as Exempt or Non-Exempt under the Fair Labor Standards Act. Non-Exempt: must receive minimum wage + 1.5× overtime for hours over 40/week; time records mandatory. Exempt: must meet salary basis test ($684/week minimum as of 2024) AND a duties test (Executive, Administrative, Professional, Computer, Outside Sales). Store exemption category on employee record. Misclassification is one of the highest-risk wage-and-hour violations — back pay up to 3 years + liquidated damages + attorney fees. Review classification when salary or duties change. Alert if exempt employee salary drops below FLSA threshold. | FLSA § 13; 29 CFR Part 541 | Critical |
| EMP-005 | New Hire Reporting | Report every new hire to the state new hire registry within 20 days of hire (federal requirement; most states require sooner — CA 20 days, TX 20 days, NY within 20 days). Required for all employees (including re-hires and independent contractors in some states). Report must include: employer name, EIN, address, employee name, SSN, address, first day of work. Purpose: child support enforcement and unemployment fraud detection. Multi-state employers may report all new hires to one designated state. Alert HR if new hire report has not been submitted within 15 days of hire date. | Personal Responsibility and Work Opportunity Act 1996; 42 USC § 653a | Critical |
| EMP-006 | Federal Minimum Wage Enforcement | Validate that no non-exempt employee's effective hourly rate falls below the applicable minimum wage. Federal minimum wage: $7.25/hour (as of 2024; unchanged since 2009). Many states and cities have higher minimums (CA $16/hr, NY $16/hr, WA $16.28/hr, Seattle $19.97/hr, NYC $16/hr). System must apply the highest applicable rate (federal, state, or local) to each employee based on work location. Alert payroll admin if any non-exempt employee will earn below applicable minimum wage in the current pay period. Track tipped employee tip credit rules (federal: employer may pay $2.13/hr if tips bring total to $7.25). | FLSA § 6; State minimum wage laws | High |
| EMP-007 | At-Will Employment & Separation Workflow | Record separation type: voluntary resignation, involuntary termination (without cause), termination for cause, layoff (reduction in force), retirement, end of contract. At-Will employment is the default in 49 states (Montana exception after probation). On separation: trigger COBRA notification obligation (14-day deadline), calculate final pay amount per state law, generate final pay stub, update I-9 retention deadline (1 year post-termination), export data for W-2 generation. Store signed offer letter and at-will acknowledgement in employee documents. Track severance agreements if applicable — must comply with ADEA waiver requirements for employees 40+. | FLSA; State employment laws; ADEA | High |
| EMP-008 | EEO Self-Identification & Reporting | Collect voluntary EEO self-identification data during onboarding: race/ethnicity (using EEOC's 7 categories), sex/gender, veteran status (VEVRAA protected categories), disability status (Section 503 self-ID form). Self-identification is voluntary — employee may decline. Store separately from personnel file with restricted access. For employers with 100+ employees: generate EEO-1 Component 1 Report annually (due March 31) categorizing workforce by race/ethnicity, sex, and 10 EEO-1 job categories. Federal contractors with 50+ employees and $50,000+ contracts must file VETS-4212 (veteran headcount) and Section 503 affirmative action plan. | Title VII; VEVRAA; ADA § 503; 41 CFR 60 | High |
| EMP-009 | Employee Handbook Acknowledgement | Track employee acknowledgement of the employee handbook. Every employee must sign (digital signature acceptable) confirming they received, read, and understood the handbook. Record: handbook version, acknowledgement date, employee signature, delivery method. Re-obtain acknowledgement whenever handbook is materially updated. Handbook must include: At-Will Employment statement, EEO policy, Anti-Harassment policy, FMLA notice, Workers' Compensation notice, COBRA general notice, USERRA military leave policy, state-specific addenda (CA DFEH, NY Human Rights Law). Handbook acknowledgement stored in Employee Documents. Alert HR for employees who have not acknowledged current version. | NLRA; State employment laws | High |
| EMP-010 | Background Check & Drug Testing Tracking | Track background check authorisation, completion date, result (clear/adverse), and screening provider. Must obtain written consent before initiating (FCRA requirement). Pre-adverse action notice required before rejecting based on background check. Adverse action notice required if rejecting. Store consent and notices in Employee Documents. Track drug test dates and results (role-specific). State ban-the-box laws restrict timing of criminal history inquiry (CA, NY, IL, MA — may only ask after conditional offer). Marijuana testing restrictions apply in CA, NY, NJ, and others. Document expiry alerts for periodic re-screenings in security-sensitive roles. | Fair Credit Reporting Act (FCRA); State ban-the-box laws | Medium |
| EMP-011 | Benefits Enrollment & Open Enrollment | Track employee health, dental, vision, FSA, HSA, and 401(k) elections. New hire special enrollment period: 30–60 days from start date. Annual Open Enrollment window (typically Oct–Nov for Jan 1 effective date) — employees can change elections. Qualifying Life Events (QLE) trigger a 30-day special enrollment window: marriage, birth/adoption, loss of other coverage, divorce. Track: plan elected, dependents enrolled, effective date, premium deduction amount. Generate benefits confirmation statement to employee after enrollment. Alert benefits administrator for employees who miss enrollment deadlines. | ERISA; IRC § 125; ACA | Medium |
| EMP-012 | Anti-Harassment Training Tracking | Track mandatory anti-harassment and EEO training completion per employee. State mandates: California (SB 1343 — 2 hours for supervisors, 1 hour for all employees, every 2 years; new supervisors within 6 months), New York (annual sexual harassment prevention training for all employees), Illinois (annual), Connecticut (supervisors), Delaware (interactive for all). Training module: create Anti-Harassment & EEO course, assign at hire, set recurrence schedule per state. Store completion certificate with expiry date. Alert HR 30 days before expiry. Non-compliance with state mandates exposes employer to EEOC/state agency action. | Title VII; State laws (CA SB 1343, NY § 201-g) | Medium |
All leave requests must route through a configurable approval workflow. Default: immediate manager (direct supervisor) receives the request and can approve, reject, or request modification. If the immediate manager is unavailable or the request escalates, it routes to the HRMS Admin or HR Admin as a secondary approver. The system must support multi-level approval chains and notify each approver by email. Approval status must be visible in real-time to the employee via the ESS portal. Leave is only deducted from balance after final approval.
| Req ID | Requirement | Description & Business Rules | Legal Basis | Priority |
|---|---|---|---|---|
| LVE-001 | FMLA — Family & Medical Leave | Implement FMLA leave: up to 12 weeks of unpaid, job-protected leave per rolling 12-month period. Eligible employees: 12+ months tenure, 1,250+ hours worked in prior 12 months, employer has 50+ employees within 75 miles. Qualifying reasons: birth/adoption/foster placement of child, employee serious health condition, care for spouse/child/parent with serious health condition, qualifying military exigency. Health benefits must continue during FMLA at same employee cost. Employee must be restored to same or equivalent position on return. Can be taken intermittently. Military caregiver leave: up to 26 weeks. Employer must respond with eligibility notice within 5 business days of FMLA request. Approval via immediate manager → HR Admin workflow. | FMLA 1993; 29 CFR Part 825 | Critical |
| LVE-002 | Leave Approval Workflow (Immediate Manager / HRMS Admin) | All leave requests must follow a configurable multi-step approval workflow. Step 1: Request submitted by employee via ESS portal with leave type, date range, and optional notes. Step 2: Immediate manager (direct supervisor as per org chart) receives email notification and approves/rejects/requests modification within a configurable SLA (default 48 hours). Step 3: If immediate manager is absent or does not respond within SLA, request auto-escalates to HRMS Admin / HR Admin. Step 4: Final approval triggers: leave balance deduction, calendar update, payroll integration flag. Rejection triggers: employee notification with reason, balance unchanged. Both approver and employee see full audit trail of approval actions with timestamps. | FMLA; FLSA; State leave laws | Critical |
| LVE-003 | PTO / Vacation Policy | No federal mandate for paid vacation — policy is company-defined. Configure PTO accrual: monthly, biweekly, or annual grant. Typical: 10–15 days/year for new employees, increasing with tenure. Support unlimited PTO policies (no accrual, no balance tracking — just approval-based). State rules on PTO payout at separation: California, Colorado, and Massachusetts require payout of accrued unused PTO as earned wages — system must track accrued balance for this purpose. Use-it-or-lose-it PTO policies are illegal in California. Configure maximum carryover cap and rollover rules per company policy and applicable state law. Approval via immediate manager → HR Admin. | State wage laws (CA Labor Code § 227.3) | High |
| LVE-004 | State Paid Sick Leave | Many states mandate paid sick leave. California: 5 days (40 hours) per year; 1 hour accrued per 30 hours worked; can use for own illness, family care, domestic violence. New York: 56 hours (100+ employees) or 40 hours (5–99 employees); accrual 1 hour per 30 worked. Washington: 1 hour per 40 hours worked; unlimited accrual; 40 hours carry forward. New Jersey: 40 hours/year for all employers. Nevada: 0.01923 hours per hour worked. Colorado: 48 hours/year. System must apply the correct state sick leave rules based on employee work location. Configure accrual method (per-hour or annual grant), carryover cap, and permitted uses per state. Approval: immediate manager or HR Admin for short absences. | State sick leave laws (varies by state) | High |
| LVE-005 | Parental Leave | No federal paid parental leave mandate (FMLA provides 12 weeks unpaid). Many employers offer paid parental leave as a benefit (typically 2–16 weeks). Create as a separate paid leave type (distinct from FMLA). Configure: duration (weeks), pay rate (100%, 60%, etc.), eligibility criteria (tenure minimum, FT/PT), applicable to birth parent, non-birth parent, and adoptive parents. FMLA can run concurrently with paid parental leave if employee qualifies. Track state paid parental leave programs (CA, NY, WA, MA, NJ — funded through PFML deductions). Approval via immediate manager → HR Admin. | FMLA; State PFML laws | High |
| LVE-006 | Military Leave (USERRA) | Uniformed Services Employment and Reemployment Rights Act (USERRA) — mandatory job-protected leave for military service. Duration: up to 5 cumulative years per employer (longer in certain circumstances). Employee must provide advance notice (oral or written) unless military necessity prevents it. Reinstatement rights: return to same position or comparable role based on length of service. Health benefits: employee can elect to continue coverage up to 24 months at up to 102% cost. Employer may voluntarily pay salary during military leave — configure as paid/unpaid per company policy. Immediate manager must approve — HR Admin notified. Cannot deny, demote, or discriminate against employee for USERRA-protected service. | USERRA; 38 USC §§ 4301–4335 | High |
| LVE-007 | COBRA Notification on Leave / Separation | COBRA applies to employers with 20+ employees. On qualifying events (termination, reduction in hours, divorce, death, Medicare eligibility, child losing dependent status): employer has 30 days to notify plan administrator; plan administrator must send COBRA Election Notice to qualified beneficiaries within 14 days. Employees have 60 days to elect COBRA. Coverage continues up to 18 months (termination/hours) or 36 months (other events) at 102% of premium cost. System must: automatically trigger COBRA workflow when employee status changes to Separated or hours reduced below FT threshold, track 14-day notice deadline, store COBRA election and waiver forms. Alert HR if deadline is approaching. Approval: HR Admin initiates COBRA notification. | COBRA (ERISA § 601–608); IRC § 4980B | High |
| LVE-008 | Bereavement Leave | California AB 1949 (effective 2023): employers with 5+ employees must provide up to 5 days of bereavement leave for death of spouse, child, parent, sibling, grandparent, grandchild, domestic partner, or parent-in-law. Can be paid or unpaid per employer policy. Other states: no federal mandate but standard practice of 3–5 days for immediate family. Configure: family relationship tiers, paid/unpaid setting, days per tier. Requires immediate manager approval and documentation (death certificate, obituary, or similar) may be requested but only after leave begins. HR Admin can override for unusual circumstances. | CA AB 1949; State laws (varies) | Medium |
| LVE-009 | Jury Duty Leave | Federal law and all states protect employees from termination for jury service. Duration: indefinite (varies by case). Federal: no pay mandate. Most states protect the job but do not require pay beyond a few days — configure paid/unpaid duration per company policy. Employees must produce jury summons. Cannot penalise employees for attending jury duty — demotion, pay cut, or termination for jury service is unlawful. Immediate manager approves with copy of summons; HR Admin notified. Track start and expected return date. Court may extend without notice — leave must remain open. Some states require full pay continuation (Colorado, Connecticut — check current rules). | 28 USC § 1875; State jury leave laws | Medium |
| LVE-010 | Voting Leave | Most states require employers to provide paid time off for employees to vote if their non-working hours are insufficient. Varies: California (2 hours paid, advance notice required), New York (up to 3 hours paid), Texas (paid time off sufficient to vote), Colorado (2 hours paid, if not 3 consecutive hours outside working hours free). Configure per state: hours granted, paid/unpaid, advance notice requirement, and proof requirement. Employee submits request to immediate manager with election date. Cannot require employee to use PTO for voting time in states where voting leave is mandated. | State voting leave laws (varies) | Medium |
| LVE-011 | State-Specific Family Leave (Beyond FMLA) | Several states have leave laws that exceed federal FMLA in scope. California CFRA: covers employers with 5+ employees (vs FMLA's 50+); includes domestic partners and grandparents. New York NYPFL: 12 weeks paid (67% of NY AWW). Washington: WA PFML provides paid leave for family and medical reasons. Oregon: up to 14 weeks paid. Configure state-specific leave types alongside federal FMLA. FMLA and state leave may run concurrently or separately depending on whether they cover the same qualifying reason. Track each leave pool independently. Approvals: immediate manager → HR Admin, with HR Admin required for leave exceeding 5 days. | State family leave laws (CFRA, NYPFL, WAPFML) | Medium |
| LVE-012 | US Federal Public Holidays | Eleven US Federal Holidays: New Year's Day (Jan 1), Martin Luther King Jr. Day (3rd Monday Jan), Presidents' Day (3rd Monday Feb), Memorial Day (last Monday May), Juneteenth (June 19), Independence Day (July 4), Labor Day (1st Monday Sep), Columbus Day (2nd Monday Oct), Veterans Day (Nov 11), Thanksgiving Day (4th Thursday Nov), Christmas Day (Dec 25). Federal holidays are only mandatory for federal government employers — private employers are not legally required to close or pay extra. Most employers grant 8–11 paid holidays per year. Configure per company. When holiday falls on Saturday, observe Friday; on Sunday, observe Monday. Paid holidays typically auto-approved without leave balance deduction. | 5 USC § 6103 (federal employees); Private sector = company policy | Medium |
| LVE-013 | Domestic Violence Leave | California, New York, Illinois, Colorado, and 20+ other states require protected leave for domestic violence victims. California (DVPA): up to 12 weeks/year unpaid for victims to seek restraining orders, medical attention, counselling, or legal assistance. Illinois: up to 12 weeks for domestic violence or sexual violence. Highest confidentiality — reason must not appear in team calendars or reports visible to other employees. Manager must not ask for detailed proof. HR Admin access only. Immediate manager approves as "protected leave" without specific reason. Cannot terminate or discipline employee for taking domestic violence leave. | State domestic violence leave laws (DVPA, NY ESSA) | Low |
| LVE-014 | Leave Balance & Accrual Summary (ESS) | Employee Self-Service portal must display real-time leave balance summary: each leave type with current balance, YTD used, pending requests, projected balance at end of year. Accrual projection: show estimated balance on a future date. Leave calendar: show team calendar (colleague approved leave) to help employee choose non-conflicting dates. Manager view: show team leave coverage to identify conflicts before approval. Payroll officer view: show leave without pay (LWOP) days per employee for current pay period for payroll deduction calculation. Integration: approved LWOP flows automatically to payroll as a deduction for non-exempt hourly employees. | FLSA; State leave laws | Low |
| Req ID | Requirement | Description & Business Rules | Legal Basis | Priority |
|---|---|---|---|---|
| TNA-001 | Overtime Calculation — FLSA 40-Hour Workweek | Non-exempt employees must receive overtime at 1.5× regular rate of pay for all hours over 40 in a single workweek. Workweek = 7 consecutive days (employer defines start day — typically Sunday or Monday). Cannot average hours across two workweeks. For biweekly payroll (26 periods): calculate OT separately for each of the two workweeks within the pay period. Regular rate of pay includes all remuneration except statutory exclusions (overtime premiums, gifts, vacation pay, discretionary bonuses). Multiple rates: blended regular rate when employee works at two different rates in one week. Employees cannot waive FLSA overtime rights. Daily OT (time over 8 hours/day) only required in California and a few other states. | FLSA § 7; 29 CFR Part 778 | Critical |
| TNA-002 | Time Records — Mandatory for Non-Exempt Employees | FLSA requires employers to maintain accurate records of hours worked for all non-exempt employees. Records must include: employee full name and SSN, home address, birthdate (if under 19), sex and occupation, time and day workweek begins, hours worked each day, total hours each workweek, regular hourly rate, total daily and weekly straight-time earnings, overtime earnings for the workweek, deductions and additions to wages, total wages paid each period, date of payment and period covered. Retain for 2 years (basic records) or 3 years (payroll records). Off-the-clock work: if employer knows or should know employee is working (responding to emails after hours), those hours are compensable even if not recorded. | FLSA § 11(c); 29 CFR Part 516 | Critical |
| TNA-003 | California Daily Overtime | California has additional OT rules beyond federal FLSA: overtime at 1.5× for hours over 8 in a single day; 2× for hours over 12 in a single day; 2× for all hours on the 7th consecutive day of work in a workweek; 1.5× for first 8 hours on 7th consecutive day. Also: double-time if working more than 8 hours on a state-designated holiday. System must apply CA daily OT rules for employees working in California regardless of where employer is headquartered. Mandatory rest breaks: 10-minute paid rest per 4 hours worked; 30-minute unpaid meal period after 5 hours (waivable if shift ≤ 6 hours). Premium pay (1 hour at regular rate) for missed meal/rest break. | CA Labor Code § 510; IWC Wage Orders | Critical |
| TNA-004 | Meal & Rest Break Tracking | Federal FLSA: rest breaks under 20 minutes must be paid; bona fide meal periods (30+ minutes, employee completely relieved of duty) are unpaid. States have additional requirements. California: 30-minute unpaid meal break after 5 hours of work (waivable if shift ≤ 6 hours); 10-minute paid rest per 4 hours. New York: 30-minute meal break for shifts over 6 hours (must be at a midpoint); factory workers get 1 hour. Oregon: 10-minute paid rest per 4 hours; 30-minute unpaid meal per 6 hours. System must log break times for non-exempt employees. Missed break premium pay alerts where applicable. Configure break rules per state/city. | FLSA; State labor codes | High |
| TNA-005 | Saturday–Sunday Weekend & Holiday Pay | Standard US workweek is Monday–Friday with Saturday–Sunday as the weekend. No federal requirement to pay extra for weekend work (only OT at 1.5× applies when hours exceed 40/week, regardless of which days). Some states and many collective bargaining agreements provide Sunday premium pay — configure as optional per company/state. Public holiday pay: no federal requirement for private employers to pay extra on holidays. However, many companies grant holiday pay (1× normal pay for non-worked holidays, or 1.5×–2× for worked holidays). Configure holiday pay policy per company. Track which holidays are observed and whether worked holidays receive premium. | FLSA; State laws; Company policy | High |
| TNA-006 | Shift Differential Pay | Support shift differential pay for evening, night, and weekend shifts. Common in healthcare, manufacturing, and retail. Evening shift: +10–15% above base rate. Night shift: +15–20% above base rate. Weekend shift: +10–25% above base rate. Shift differentials are included in the regular rate of pay for overtime calculation purposes (not excluded like bonuses). Configure differential rates per shift type and per grade/job classification. System must incorporate differential into regular rate before computing OT. No federal mandate for shift differentials — purely contractual/company policy. | FLSA § 7(e); 29 CFR 778.207 | High |
| TNA-007 | Remote Work Time Tracking | Non-exempt remote employees must still track all hours worked. FLSA applies regardless of work location (home, client site, etc.). Employer is responsible for ensuring non-exempt remote workers are not working off-the-clock. Practical requirements: remote clock-in/out system, break logging, daily hour confirmation. Provide clear policy on permissible working hours to prevent unpaid overtime claims. Some states (CA) additionally require meal/rest break compliance to be actively ensured by employer for remote workers. Track home office location for applicable state/city minimum wage and sick leave rules — remote workers are governed by the laws of where they physically work, not employer headquarters. | FLSA; State labor codes | Medium |
| TNA-008 | Child Labor Rules | FLSA child labor provisions restrict hours and types of work for minors. Age 14–15: max 3 hours/school day, 8 hours non-school day, 18 hours/school week, 40 hours/non-school week; only between 7am and 7pm (9pm summer). Age 16–17: no hour restrictions but prohibited from hazardous occupations (operating heavy machinery, roofing, mining, meat processing). Age 18+: no restrictions. Flag employees under 18 on employee record. System must alert if scheduled hours or job type potentially violate child labor rules. Agriculture and entertainment have different rules. States may have stricter requirements — apply most restrictive. | FLSA § 12; 29 CFR Parts 570–580 | Medium |
| TNA-009 | Predictive Scheduling Compliance | Several cities and states have enacted Fair Workweek / Predictive Scheduling laws requiring advance notice of schedules and premium pay for last-minute changes. New York City retail/fast food: 14-day advance schedule notice; premium for schedule changes. Seattle: 14-day notice; premium for changes. Chicago, Philadelphia, San Francisco, Oregon statewide: similar requirements. Configure per location: advance notice period, premium pay amount for late changes (typically 1–4 hours premium), right to decline added hours without penalty. Track schedule change history for compliance audits. These laws apply mainly to retail, food service, and hospitality employers with 250+ employees globally. | NYC Fair Workweek Law; Seattle SMC 14.22; OR SB 828 | Low |
| TNA-010 | Workers' Compensation — Hours Tracking for Premiums | Workers' Compensation insurance premiums are calculated based on total payroll by job classification code (NCCI codes). Track hours worked by job classification for accurate premium calculation. Provide payroll-by-class report for workers' comp audit (annual audit by carrier). Each state has its own workers' comp system and required minimum coverage levels. Record work-related injuries/incidents with date, description, body part, and whether OSHA recordable (300 log requirement for employers with 10+ employees). Alert HR for OSHA 300 reporting deadlines. Form OSHA 300A must be posted February 1–April 30 each year. | State Workers' Comp Acts; OSHA 29 CFR 1904 | Low |
| Req ID | Requirement | Description & Business Rules | Legal Basis | Priority |
|---|---|---|---|---|
| BEN-001 | ACA Minimum Essential Coverage (MEC) | Applicable Large Employers (ALEs — 50+ FTEs including part-time equivalents) must offer Minimum Essential Coverage (MEC) to full-time employees (30+ hours/week) and their dependent children up to age 26. Coverage must be "affordable" (employee premium ≤ 9.12% of employee's W-2 wages for 2024) and provide "minimum value" (plan pays at least 60% of covered costs). Employer Shared Responsibility Payment (ESRP): $2,970 per full-time employee (minus first 30) for not offering MEC; $4,460 per full-time employee who receives a marketplace subsidy if coverage is unaffordable. Determine ALE status annually using prior year FTE count. | ACA § 4980H; IRC § 4980H | Critical |
| BEN-002 | Health Insurance Premium Deductions | Deduct employee share of health, dental, and vision insurance premiums from payroll. If administered under a Section 125 Cafeteria Plan, premiums are pre-tax (reducing FICA and FIT). Track: plan type elected, dependents covered, employee premium amount, employer premium amount, effective date. Open enrollment changes effective January 1 (or plan anniversary date). QLE changes effective date = date of qualifying event. Premium deductions must be consistent throughout the plan year — no mid-year changes without a QLE. Report employer-sponsored health coverage on W-2 Box 12 Code DD (informational only, not taxable). | ACA; IRC § 125; ERISA | High |
| BEN-003 | HSA — Health Savings Account | HSA available only to employees enrolled in a High Deductible Health Plan (HDHP). 2024 contribution limits: $4,150 (individual) / $8,300 (family) — IRS updates annually. Triple tax advantage: contributions pre-tax, growth tax-free, qualified medical withdrawals tax-free. Funds roll over indefinitely. Account is employee-owned — portable after employment. Employer may contribute to employee HSA (excluded from wages if part of Section 125 plan). Track employee + employer YTD HSA contributions — block additional contributions once limit reached. Report on W-2 Box 12 Code W (employer contributions). Mid-year HDHP enrollment: prorate annual limit based on last-month rule or testing period. | IRC § 223; IRS Rev. Proc. (annual) | High |
| BEN-004 | FSA — Flexible Spending Account | Health FSA: 2024 limit $3,200/year. Pre-tax payroll deduction reduces FICA and FIT. Use-it-or-lose-it (employer may offer $610 rollover or 2.5-month grace period — not both). Cannot be combined with HSA except limited-purpose FSA (dental/vision only). Dependent Care FSA: separate $5,000/year ($2,500 if married filing separately) for qualifying childcare and adult dependent care. DC-FSA excludes from wages — reduces FICA. Track YTD FSA contributions. Cannot change elections mid-year except QLE. Forfeitures return to employer plan. Provide FSA balance info in ESS portal. Substantiate claims: FSA requires documentation of medical necessity (unlike HSA). | IRC § 125; IRS Notice 2020-33 | High |
| BEN-005 | Life Insurance & Disability Insurance Tracking | Track employer-provided life insurance and disability coverage. Group term life insurance: employer-paid premiums for coverage up to $50,000 are tax-free. Coverage above $50,000: imputed income (Table I rates) added to employee W-2 Box 12 Code C as taxable. Short-term disability (STD): typically employer-funded; benefits taxable if employer paid premiums. Long-term disability (LTD): benefits taxable if employer paid premiums; tax-free if employee paid premiums from after-tax income. State disability programs (CA SDI, NY DBL, NJ TDI): employee-deducted contributions, benefits replace income during non-work disability. Track all coverage types, premium amounts, and tax treatment for accurate W-2 reporting. | IRC § 79; State SDI laws | High |
| BEN-006 | ERISA Plan Document & SPD Compliance | All employee benefit plans (health, 401k, FSA, life insurance) must be governed by a formal plan document (ERISA requirement). Summary Plan Description (SPD) must be provided to plan participants within 90 days of enrollment and within 90 days of plan amendment. Plans with 100+ participants must file Form 5500 annually with DOL. Plans with fewer than 100 participants that are fully insured: simplified annual report. Track SPD distribution to each employee with date and acknowledgement. Alert benefits administrator of Form 5500 filing deadlines (7 months after plan year end). Material modifications require Summary of Material Modification (SMM) within 60 days. | ERISA §§ 101–104; IRC § 401(a) | Medium |
| BEN-007 | Commuter Benefits | Tax-free transportation fringe benefits under IRC § 132(f). 2024 limits: $315/month for employer-provided transit passes/vanpool; $315/month for qualified parking. Amounts up to the limit are excluded from employee wages (reduce FICA and FIT). Amounts above the limit are taxable. Configure as pre-tax deductions up to monthly limit. NYC Commuter Benefits Law (and NJ, IL similar): employers with 20+ full-time employees must offer transit pre-tax benefit. Benefit offered via payroll deduction for transit passes, parking, or bicycle commuting reimbursement. | IRC § 132(f); NYC Admin Code § 20-926 | Medium |
| BEN-008 | HIPAA — Health Data Separation | HIPAA requires that health information (medical records, health plan enrollment details, disability information) be kept in separate confidential files from the general HR personnel file. Only specific personnel (benefits administrator, occupational health) may access medical files. ADA similarly requires medical information be kept separate. System must implement role-based access control ensuring health/medical data fields are only accessible to HR Admin and Benefits Admin roles — not to direct managers or general HR Officers. HIPAA breach reporting: notify affected individuals within 60 days of discovery; HHS notification within 60 days (500+ records) or annually (< 500). Medical information must not appear in performance reviews or general correspondence. | HIPAA; ADA § 12112(d) | Medium |
| BEN-009 | Employee Assistance Program (EAP) Tracking | Track EAP enrollment and utilization for compliance and benefit planning. EAP benefits (mental health, counselling, legal, financial assistance) are generally excluded from gross income if meeting IRC § 132 requirements. EAP services confidential — individual utilization data must not be accessible by employer. HIPAA applies if EAP is connected to health plan. Store: provider name, program dates, employee access confirmation (not specific services used). Some states are beginning to require EAP disclosure and minimum mental health benefits — monitor state mandates. | IRC § 132; HIPAA; Mental Health Parity Act | Low |
| BEN-010 | Equity Compensation Tracking (RSUs / Stock Options) | Track Restricted Stock Units (RSUs), Stock Options (ISOs and NSOs), and Employee Stock Purchase Plans (ESPP) for payroll and W-2 purposes. RSU vesting: FMV at vest date is ordinary income (W-2 wages), subject to FICA and FIT withholding — employer must withhold at supplemental rate (22%) or aggregate method. ISO exercise: no regular income tax at exercise if holding period met; AMT preference item. NSO exercise: spread between exercise price and FMV is W-2 income. ESPP: discount portion may be ordinary income. Generate equity compensation W-2 entries. Track grant dates, vesting schedules, exercise dates, and share prices. Coordinate with equity management platform (Carta, Equity Edge) via CSV import. | IRC §§ 83, 421–424; IRS Rev. Proc. | Low |
| Req ID | Requirement | Description & Business Rules | Legal Basis | Priority |
|---|---|---|---|---|
| PRI-001 | SSN & Sensitive Data Masking | Social Security Numbers must be masked in all UI displays (show only last 4 digits: ***-**-1234). SSN must be encrypted at rest in database. Bank account numbers masked in UI (show last 4 digits). W-2s may show full SSN in the copy delivered to employee but must be masked in system exports and reports. FCRA: credit check results and consumer reports must be stored separately with restricted access. Do not log SSN or bank routing numbers to application logs. PII data (name, address, SSN, bank details) must not be in error messages or API responses beyond what is operationally necessary. Access to full SSN limited to Payroll Admin role only. | IRS § 6109; FCRA; State SSN laws | Critical |
| PRI-002 | California Consumer Privacy Act (CCPA / CPRA) | CCPA/CPRA applies to for-profit businesses meeting size thresholds operating in California. Employee personal information rights: right to know what is collected, right to delete (with employment law retention exceptions), right to correct inaccuracies, right to opt out of sale of personal information. HR data covered: hiring records, performance evaluations, salary, benefits, time records. Implement: privacy notice to California employees at hire, CCPA data subject request workflow (response within 45 days), data inventory for California employee data. Employee HR data exemption partially expired 1 Jan 2023 — California employees now have full CPRA rights. CPRA also requires reasonable security for PI — security contracts with vendors. | CA Civil Code § 1798.100; CPRA (Prop 24) | High |
| PRI-003 | I-9 & Document Separate Storage | I-9 forms must be stored separately from general personnel files (immigration law requirement). Medical information (FMLA certifications, ADA accommodation requests, health insurance enrollment) must be stored in a separate confidential file, accessible only to HR Admin and Benefits Admin. Background check results (consumer reports under FCRA) must be stored separately from the general personnel file. System must implement document type tagging with access control per document category: I-9 (HR Admin + Immigration Specialist), Medical (HR Admin + Benefits Admin), Background Check (HR Admin only), General Documents (HR Staff + Manager for relevant docs). Separation of duties for sensitive document access. | IRCA; ADA § 12112(d)(3); FCRA § 604 | High |
| PRI-004 | State Biometric Privacy Laws | Illinois BIPA (Biometric Information Privacy Act): requires written consent before collecting fingerprints, face scans, or other biometrics; written policy required; 3-year retention limit; cannot profit from biometric data; private right of action ($1,000–$5,000/violation). Texas and Washington have similar biometric laws (no private right of action). Before enabling biometric attendance (fingerprint/face) in IL, TX, or WA: collect written consent per BIPA requirements, implement retention and destruction schedule, document data handling policy. Store biometric consent records with timestamp. GPS attendance (non-biometric) has different requirements. Biometric data subject to heightened protection — encrypt and isolate from general HR data. | IL BIPA (740 ILCS 14); TX CUBI; WA HB 1493 | High |
| PRI-005 | Electronic Payroll Records Retention | Federal retention requirements: payroll records 3 years (FLSA); I-9 records 3 years from hire or 1 year post-termination (longer); W-2 / W-4 / 941 records 4 years from tax due or payment (IRS). State requirements may be longer (CA 3 years FLSA + 4 years wage records). Implement automated retention schedule: flag records for deletion/archiving when retention period expires. Legal hold: indefinitely suspend deletion for records related to pending litigation, EEOC charges, or DOL investigations. Payroll records must be available for audit by DOL Wage and Hour Division on request (no advance notice required). Provide data export in machine-readable format for IRS/DOL audits. | FLSA § 11(c); IRS § 6001; State wage laws | Medium |
| PRI-006 | Pay Transparency Compliance | Growing number of states and cities require pay transparency. Colorado (EPEWA): must include pay range in all job postings. New York City: must list salary range in job ads for NYC-based roles. California: must include pay scale in job postings (SB 1162, 2023); employers with 100+ employees must submit pay data report to CRD annually (median/mean pay by race, gender, job category). Washington: disclose wage range to applicants and employees on request. Illinois: pay range disclosure required for internal promotions. Store pay band/range per grade. Do not prohibit employees from discussing wages (NLRA protection). Generate pay equity analysis report (compare pay by gender, race, job category). | NLRA § 7; CO EPEWA; CA SB 1162; NYC Local Law 32 | Medium |
| PRI-007 | Multi-State Employee Nexus Tracking | Employees who physically work in multiple states (remote workers who move, traveling sales staff, construction crews) create tax nexus in each state. System must track work-location state per pay period. Apply correct state income tax withholding and SUTA for each state where work is performed. Some states have reciprocity agreements (e.g., DC-MD-VA, PA-NJ) — employees may pay taxes only to home state. Track: employee home state, work state(s), days worked per state per pay period. Generate multi-state allocation report for payroll tax filing. Alert payroll admin when employee works in a new state that requires new withholding registration. | State income tax laws; State SUTA | Low |
| PRI-008 | US Data Residency for Regulated Industries | Federal contractors and certain regulated industries (healthcare, defense, finance) may have data residency requirements. FedRAMP compliance required for systems processing federal government data. ITAR-controlled employee data (for defense contractors with export-controlled technology) must not be accessible to non-US persons without clearance. Healthcare-adjacent employers must comply with HIPAA Safe Harbor de-identification for shared analytics. For general US commercial employers: data may be hosted in US or EU/EEA without restriction. Configure deployment region per tenant. Azure East US or West US regions recommended for low-latency US payroll processing. | FedRAMP; HIPAA; ITAR; SEC Rule 17a-4 | Low |
| Req ID | Requirement | Description & Business Rules | Legal Basis | Priority |
|---|---|---|---|---|
| RPT-001 | USD as Primary Currency | All monetary values in USD ($). Format: $1,234.56 ($ prefix, comma thousand separator, dot decimal). Federal minimum wage, FICA wage bases, IRS limits, and all payroll calculations in USD. No multi-currency payroll for US operations. Salary components, payslips, payroll reports, JV exports, ACH files — all in USD. IRS forms use USD rounded to nearest dollar (no cents). Salary display: hourly rate in $/hour; annual salary in $/year. Commission and bonus paid in USD. 401k limits, HSA limits, FSA limits all in USD — update annually per IRS Rev. Proc. | Coinage Act; IRS USD reporting | Critical |
| RPT-002 | MM/DD/YYYY Date Format | US date format is MM/DD/YYYY (month first). All date displays in UI use MM/DD/YYYY. Payslip date headers: "December 25, 2025". I-9 dates in MM/DD/YYYY. IRS forms use MM/DD/YYYY. Internal storage in ISO 8601 (UTC). date-fns format string: 'MM/dd/yyyy' for display. NACHA ACH file dates in YYMMDD format per NACHA specification. Distinguish clearly from European DD/MM/YYYY — configurable at tenant level so international HR staff are not confused. Birth date fields must use MM/DD/YYYY with clear labeling to avoid European date entry errors. | IRS / USCIS document standards | Critical |
| RPT-003 | Salary Register & Payroll Summary Report | Generate payroll summary reports: (1) Payroll Register — all employees, gross pay, each deduction itemised, net pay, employer costs (FICA match, FUTA/SUTA, health premium, 401k match). (2) Payroll Tax Summary — FIT, SS, Medicare, state taxes totalled for the period and YTD. (3) Employer Cost Report — total employment cost per employee and by department (gross + employer FICA + FUTA + benefits + 401k match). (4) Certified Payroll Report — for federal and state prevailing wage projects (Davis-Bacon Act). Export to CSV for QuickBooks, NetSuite, ADP, Gusto-compatible formats. Historical payroll registers retained 4 years per IRS requirement. | IRS; DOL Davis-Bacon Act | High |
| RPT-004 | US Timezone & DST Support | US spans 6 standard time zones: ET (UTC-5/4), CT (UTC-6/5), MT (UTC-7/6), PT (UTC-8/7), AKT (UTC-9/8), HT (UTC-10, no DST). Most states observe Daylight Saving Time (clocks advance 2nd Sunday March, retract 1st Sunday November). Arizona (except Navajo Nation) and Hawaii do not observe DST. Configure tenant timezone per company. Employees may work across time zones — clock-in/out times recorded in local time, stored in UTC. Payroll period cutoffs must use consistent timezone. Attendance records near DST transitions must handle 23-hour and 25-hour days correctly for OT calculation. Alert when attendance records span a DST transition. | FLSA (workweek definition); Uniform Time Act | High |
| RPT-005 | US Phone Number & Address Validation | US phone number format: (XXX) XXX-XXXX or +1-XXX-XXX-XXXX. Validate 10-digit US numbers using libphonenumber-js with US locale. Store in E.164 (+1XXXXXXXXXX). US addresses: Street, City, State (2-letter USPS code), ZIP code (5 digits or ZIP+4 format XXXXX-XXXX). Validate ZIP code format. State dropdown: all 50 states + D.C., Puerto Rico, Guam, USVI. For remote/multi-state employees, store work state separately from home state — used for payroll tax nexus determination. USPS address standardization API integration recommended for reducing returned mail and ensuring correct state tax withholding. | USPS addressing standards | High |
| RPT-006 | JV Export — US Accounting Software Formats | Generate payroll journal voucher (JV) in formats compatible with popular US accounting software: QuickBooks (IIF and CSV import), NetSuite (SuiteCloud import format), Xero (manual journal CSV), Sage Intacct (JE import), SAP BAPI. JV must include: employer FICA cost as separate GL line (not just employee withholding), FUTA/SUTA as separate cost center lines, 401k employer match, health premium employer share, all coded to correct chart of accounts. Cost centre split by department. Payroll period and check date clearly labelled. US entities commonly integrate with QuickBooks (SMB) or NetSuite (mid-market) — prioritise these formats. | GAAP; IRS; ERISA | High |
| RPT-007 | EEO-1 Report Generation | Generate EEO-1 Component 1 data export for employers with 100+ employees (or 50+ with federal contracts). EEO-1 categorizes workforce by: 7 race/ethnicity categories × 2 gender categories × 10 EEO-1 job categories. Snapshot date: October 1 of the reporting year (or any pay period between July 1 – September 30). Filed with EEOC by March 31 of following year (dates vary). EEO-1 Component 2 (pay data) was suspended but may resume — prepare data export capability. Use voluntary self-identification data from EMP-008. Generate report in EEOC-specified CSV/XML format. Separate EEO data from general payroll for privacy. OFCCP AAP data for federal contractors submitted separately. | Title VII; 29 CFR 1602; EO 11246 | Medium |
| RPT-008 | Pay Equity Analysis Report | Generate pay equity analysis comparing compensation by gender, race/ethnicity, and job category within the same or comparable roles. California SB 1162 (employers 100+ employees): annual pay data report to CRD — median/mean hourly rate by race, ethnicity, sex for each job category, with hours worked. Colorado EPEWA: pay range disclosure for all job postings. Illinois pay equity audit required for state contractors. Report should show: headcount by group, mean and median hourly rate, pay gap percentage, statistical significance of gaps. Generate trend comparison year-over-year. Supports proactive pay equity correction before regulatory filing. | Equal Pay Act 1963; CA SB 1162; CO EPEWA | Medium |
| RPT-009 | Certified Payroll (Davis-Bacon Act) | Federal and federally-funded construction contracts require certified payroll reports (WH-347 form). Must show each worker's name, SSN, work classification, hours worked, prevailing wage rate, gross wages, deductions, and net wages per week. Submitted weekly to contracting agency. State "Little Davis-Bacon" laws require similar reporting for state-funded projects. Prevailing wage rates determined by DOL Wage Determinations. System must support prevailing wage rate tables by trade classification and county. Generate WH-347-compliant export. Contractors must retain certified payroll records for 3 years. Apply to employers in construction, infrastructure, and government services sectors. | Davis-Bacon Act; 29 CFR Part 5 | Low |