Premium Essay

Lit1 – Legal Issues for Business Organizations Task 1

In: Business and Management

Submitted By bmcornell
Words 1492
Pages 6

Hello, my name is Mr. B and I am the newly hired director of human resources for company X. I have been charged with the oversight of 75 employees. My duties as the human resource director are to oversee the hiring and employment practices. I must also ensure that company X is in compliance with pertinent federal laws and regulations to avoid fines and other sanctions that could be imposed. I have recently been asked to evaluate three situations and to submit a report regarding whether the company is in violation in any of the three situations.
Situation A: states that employee A has been working for the Company for 24 months and that his wife has prematurely given birth to two babies. He asked, and was allowed the time off he requested to help his wife care for their new born children. Recently he has requested to return to work and also asked to receive his income that was not paid while he was caring for his new babies. I have been advised that his current manager let him to have his position back that he had at his previous income, but he manager decided to withhold his wages for the time he was out. The family and medical leave act of 1993 (FMLA) was created to help eligible employees, of covered employers, to take time off work without risking job loss or other penalties, during times of medical hardships like the birth of a child, the care of a parent, child, other dependent or a spouse that has a serious medical condition. FMLA was enacted to with the goal of equal opportunities for women in the work force. There are certain requirements that must be meet for an employee to qualify for FMLA. The employee would need to complete 12 months of employment or have work at least 1250 hours during the 12 months preceding the incident. The business must have employed 50 or more people within a 75 mile radius. Lastly the employee must be employed with a covered…...

Similar Documents

Premium Essay

Business

...Part A Sole Proprietorship A sole proprietorship is essentially a small business that is headed by one party or owner, referred to as an entrepreneur. As a sole proprietorship, the debt liability rests entirely on the owner. This means that they can be sued by creditors to collect business debts. Also, if the business owner has any unpaid personal debts, creditors may attempt to collect them from the business profits. Issues such as injuries, lawsuits, and torts that may arise will find the owner completely responsible. Because a sole proprietorship is not a corporation, the business owner is taxed differently. They must report all losses and profits to the Internal Revenue Service and keep current and accurate financial records for their business. They are also allowed certain deductions and exemptions on their taxes such as marketing costs, travel expenses, and startup fees and must pay self-employment taxes. Because the business is indistinguishable from the actual owner, the longevity is limited to the owner’s health. In other words, unless it is sold and legally transferred to another owner, the business will dissolve upon the death of the original owner. The sole proprietor has complete control, which involves the power to make all of the important decisions regarding their business. This can be advantageous because the owner has liberty to do as they please creatively and strategically, but it can also be an enormous amount of pressure for one person. ......

Words: 1741 - Pages: 7

Premium Essay

Lit1 - Task 1

...Legal Issues for Business Organizations – LIT1 Task 1 Legal Issues for Business Organizations – LIT1 Task 1 – Part A The way a business is organized is an important part of the business’s structure. “Different organizations provide different advantages and disadvantages in creation cost and simplicity, ongoing maintenance requirements, dissolution and continuity, fundraising, managerial control, public ownership, tax planning, and limited liability.” The nature of the business being conducted has little to do with the way the business is organized. (Johnson, 2013) Sole Proprietorship: The basic concept of sole proprietorship is that there is no distinction between the individual business owner and the business. To start this type of business, in most cases, one only needs to begin charging money for goods or services. Because of its simplicity, sole proprietorship is the most common business structure in the United States. According to the U.S. Small Business Administration, “over 70 percent of businesses are owned and operated by sole proprietors.” (Beesley, 2013) Following are some of the characteristics that lend both advantages and disadvantages to this type of business organization. * Liability. As sole owner of a business, there is no severability of liability between the business and the individual. Therefore, all gains and losses of the business are also the gains and losses of the individual. The aspect of unlimited liability is one of the......

Words: 2852 - Pages: 12

Free Essay

Lit1 - Corporations

...      LIT1  –  Task  1  (Part  A)       Sole  Proprietorship:   • Single Ownership - The single individual always owns sole proprietorship form of the business. The individual owns all assets and properties of the business and bears the risk of losing or gaining from the business.   • No Sharing of Profit – The business is owned by an individual, therefore, all of the gains are directly available for the owner to access immediately. There is no friction between owners   • One  Man’s  Control  -­‐  The  controlling  power  in  a  sole  proprietorship  always   will  be  the  owner.  However,  the  owner  is  free  to  consult  to  whomever   he/she  likes.   • Unlimited  Liability  -­‐  The liability of the sole proprietor is unlimited. This implies that, in case of loss the business assets along with the personal properties of the proprietor shall be used to pay the business liabilities   • Direct  Motivation  –  Since  the  profits  earned  goes  directly  to  the  owner   there  is  a  greater  motive  to  perform.   • Ease  to  form  and  dissolve  –  Since  the  business  is  not  a  corporation  it  is   fairly  easy  to  startup  and  dissolve.   • Taxation  –  The  owners  conduct  a  pass ......

Words: 2077 - Pages: 9

Premium Essay

Lit1 Task 1

...LIT1 Task 1, Part A Sole proprietorship: A sole proprietorship is an inexpensive and easy to form business organization. This entrepreneurship gives the owner the ability to have flexibility in their schedule. The business owner of this organization will benefit from having full control and retains all the businesses profits. Negatively, the business owner is also personally responsible for all the debt. and liability the business may take on. In this organization if the owner dies, the business dies also. • Liability: In a sole proprietorship the owner is personally responsible for all of the liability, including all debts. and obligations. The Sole proprietors personal assets are unprotected if the company “goes under” and there are unpaid debts. • Income taxes: In a sole proprietorship federal income taxes are filed as an individual would and Income taxes are submitted on the business owners’ personal income tax return. In this organization the percentage of taxes paid are typically higher. • Longevity or continuity of the organization: A limitation for growth in a sole proprietorship is that it does not allow financial investors thus, leaving the business owner to rely on his/her personal finances. In this organization if the owner dies, the business dies also. • Control: The business owner has all the control associated with the business. The business owner can set up the company as he/she chooses. • Profit retention: The business owner in a......

Words: 2555 - Pages: 11

Premium Essay

Lit1 Task 1 Part a

...Running Head: LIT1: Legal Issues for Bus.Org Task 1 PART A Sole Proprietorship: Is one of the most popular business types in the U.S and also one of the simplest. There is no legal distinction between the proprietor and the business which means it is autonomous. Autonomy can be very beneficial in that it allows for creative expression, freedom and control but also allows for limitless liability for the owner. Liability: Because the business and the owner are one in the same the liability falls completely on the owner. All forms of a business owner’s assets are available to cover business debts. * Income Taxes: All net income from a Sole Proprietor’s company is taxed as personal income. * Longevity/Continuity: Since this business type is autonomous it can only have one owner. Also the business cannot be sold to someone else. * Control: This business type is controlled by the sole. * Profit Retention: The profit earned from a sole proprietorship is all personal. * Location: The simplicity of this business type allows one to be created wherever the business owner is. * Convenience/Burden: The convenience of a Sole Proprietorship is that it can be created just by starting to do business. The burdens can be the lack of other people to help in the ownership of the business. General Partnership: A General Partnership is similar to a Sole Proprietorship in that it still is not a separate legal entity. A General Partnership is formed when two or more...

Words: 1136 - Pages: 5

Premium Essay

Lit1 Task 1

...Lit1 Task 1 Organization of Business Sole Proprietorship: Most common form of business today. Legally speaking the sole proprietor and the business are one in the same. Any legal issues such as law suits and tax liabilities are the same and the sole responsibility of the owner. There is no autonomy, no differentiation between the business and the owner. If the business gets sued, it is the personal assets of the business and the owner that are in jeopardy. It is also the easiest form of business to start and to end. A sole proprietor needs to obtain the appropriate licenses for the state and/or municipality in which they wish to do business then, they are up and running. All revenue is personal revenue for the owner. Any bills are paid by the owner. The business can be closed as easily as it was opened. Just stop doing business. The business cannot be passed on to anyone, when the owner dies the business dies. Any loans needed to do business will be in the form of personal loans from a bank since the business and the owner are one in the same. The owner’s credit worthiness is the businesses credit worthiness. Since the owner of the sole proprietorship and the business are one in the same, there is no need for agreements or contracts. General Partnership: Unlike a sole proprietorship, a general partnership is formed with an agreement between the parties involved. General partnerships are formed when two or more people agree to open a business......

Words: 1951 - Pages: 8

Premium Essay

Lit1 Wgu Task a

...LIT1 Task 1 Part A (the report) SOLE PROPRIETORSHIP: A sole proprietorship is the simplest, quickest and cheapest form of business to start making it the most popular types for first time business owners. A business owner and a sole proprietor may operate under different names, but legally, they are the same entity. Which leads to one of the biggest disadvantages of becoming a sole proprietor; the owner is responsible for all debts and fault created by the business. One of the major advantages to starting a sole proprietorship is the simplicity behind the formation. There is very little paperwork that needs to be filed at the inception and it takes very little work to keep the business compliant with state and federal laws. Another advantage to a sole proprietorship is taxes. Any money made by a sole proprietor is considered income to the owner. The profit is claimed as income on the owner’s annual tax filings. * Liability: Because there is no legal separation between an owner and the business in a sole proprietorship, the business owner is unlimitedly liable for any debt or fault of the business. Even if the sole proprietorship dissolves, the owner will be liable for the debt. If the debt is not taken care of in a timely manner it will could affect the owner’s credit rating and lead to future earnings being garnished. * Income Taxes: Taxation of a sole proprietorship happens once, at the income level of the owner. Any profit made by the company is considered......

Words: 4431 - Pages: 18

Premium Essay

Lit1 Task 1

...Steve Wood LIT1 - Legal Issues for Business Organizations Task 1 Scenario A The purpose of the Family and Medical Leave Act of 1993 is to offer a balance between the stresses of both work and life. There are three main provisions of the act that are critical to the overall takeaway of what this law means to this situation. First, “Eligible employees can take unpaid, job-protected leave (they can return to their position). When they return from leave, FMLA guidelines require that companies return employees to their former position, assuming they are able to perform the essential functions of that position. If the employee is no longer able to perform his or her previous job, an alternative position with the same benefits, salary, and work hours must be provided to the disabled employee.” (FMLA Online) Second, Their insurance coverage stays as if they had not taken leave, COBRA does not take effect. And, “the leave can be tailored to fit the needs of the individual.” (FMLA Online) The law allows for the employee to take unpaid time to be able to care for his family without the need to stress that there will not be a job waiting with the same pay. The other part about this that is awesome is the fact that the employee’s insurance coverage stays intact without the need to involve COBRA. This law can also be tailored to the needs of the individual. If they need to have a continuous full 12 weeks, they can; if they need the leave to be split in different blocks of time, they can;......

Words: 1722 - Pages: 7

Premium Essay

Wgu Legal Issues

...LIT1: Task 310.1.5-02, 11, 13  Part A  Sole Proprietorship: This form of business is the most common form of new business startup. Legal and tax issues are basic and can be followed without significant assistance from external sources. The business and owner are one in the same and all liabilities will fall upon them personally. The primary key to being a sole proprietor is the owner maintains independence in the decision making of the business and how he or she implements their business plan.  LIABILITY:  Individual and the business are treated in the same manner. The sole proprietor holds responsibility is for all losses and profits and has the additional responsibility of being personal liable for all actions of the business. INCOME TAXES: The sole proprietor profits are taxed as their personal income with only minimal tax incentives compared to other business models. Business profits or in the case of losses must be reported as personal income tax.  LONGEVITY/CONTINUITY: Sole proprietorship can end their business at anytime without legal formalities.  CONTROL: An SP business is operated as a single business owner. The control of the business cannot be given to anyone else.  PROFIT RETENTION: The profits of the business belong to the owner of the business and are not shared.  LOCATION: A sole proprietor is not limited to where it can operate within the United States. Only localized codes and regulations can affect where the business can be located.  CONVENIENCE/BURDEN:......

Words: 4222 - Pages: 17