Reliable Employer of Record Services for the Retail Industry
Retail success starts with the right people, but finding and managing them shouldn’t slow you down. HR Options provides dependable employer-of-record (EOR) services for the retail industry to help you grow your team without administrative headaches.
We handle everything from employee onboarding and payroll processing to tax compliance and benefits administration. Whether you’re staffing up for a major sales season or expanding into new locations, our solutions help you stay fully compliant and focused on delivering great customer service.
Our intuitive platform gives you real-time visibility into your workforce and helps you manage schedules, track payroll, and stay organized across all your retail operations. From in-store associates to remote customer support, we ensure every hire is smooth, compliant, and efficient.
Partner with us to simplify your retail workforce management and focus on growing your business with freedom!
Streamline Retail Hiring with Expert HR Support
Hiring and managing retail employees doesn’t have to be overwhelming. At HR Options, we simplify the entire employment process so you can focus on running your stores and serving customers. Our employ of record in the retail industry supports the fast-moving demands of retail, whether you’re hiring seasonal staff or building a long-term team. We support retail businesses of all sizes with end-to-end HR services, including:
- Employee onboarding
- Seamless offboarding
- Accurate payroll processing
- Tax compliance and filings
- Timesheet and attendance tracking
- Full-spectrum HR support
- Managing employee relations
- Support for every stage of the employment cycle
Valuable Benefits for Your Retail Workforce
A great customer experience starts with a satisfied and supported team. In retail, where employee turnover can be high, offering strong benefits is one of the best ways to retain top talent and keep your team motivated.
At HR Options, we help retail businesses build benefits packages that reflect their values and meet the unique needs of their workforce. Whether you’re managing full-time staff or a team of seasonal employees, we’ll help you create a plan that works.
Depending on your business goals and policies, a benefits package may include:
- Life Insurance
- Medical Insurance
- Vision Insurance
- Dental Insurance
- Long-Term Disability Insurance (LTD)
- Health Savings Accounts (HSA)
- Flexible Spending Accounts (FSA)
- Pension or Retirement Plans
Essential Employment Information for the Retail Industry
Looking for reliable employer-of-record services for your retail industry? Here’s some essential employment information we think you should know:
What is the Minimum Wage Rate for Retail Employees?
In the retail industry, minimum wage rates can vary depending on the size of your business and the number of employees you have. Generally, larger retail employers may be required to pay a higher minimum wage than smaller businesses, which often follow the federal baseline. For example, the federal minimum wage in the United States is $7.25 per hour, while the federal minimum wage in Canada is $17.75 per hour.
What is Considered Full-Time Employment in the Retail Industry?
In the retail industry, full-time employment typically means working between 35 and 40 hours per week, though this can vary by employer. Each retail business may define full-time status differently based on its policies. Retail employees should review their company’s policies to understand how full-time status impacts their work hours, benefits, and compensation.
What Is Considered Part-Time Employment in the Retail Industry?
Part-time employment means working fewer than 30 hours per week, though no universal legal definition exists. Employers often set their own criteria based on business needs and staffing demands. While part-time retail employees may not always qualify for full health insurance or retirement benefits, many retailers offer flexible schedules or pro-rated benefits to attract and keep valuable team members.
How Do Retail Employees Get Paid Overtime?
In the retail industry, overtime pay is typically governed by the federal Fair Labor Standards Act (FLSA). Under these rules, retail employees must be paid 1.5 times their regular hourly rate for any hours worked beyond 40 hours per week. However, some retail positions may be exempt from overtime pay depending on the employee’s job duties or classification.
How Long Does Onboarding Take in the Retail Industry?
In retail, onboarding usually takes two to five business days after submitting all required employee information. For non-citizens or employees needing work eligibility verification, this process may take an additional three days or more. Our retail EOR experts focus on making onboarding fast and efficient, so your team can start working without delay.
What is the Payroll Cycle in the Retail Industry?
In most retail industry sectors, it’s common for employers to run payroll at least twice a month to ensure timely and consistent payments to staff. Many retailers follow a semi-monthly payroll cycle, with payments issued in two equal installments, typically around the 15th and the last day of the month.
The second installment often includes applicable bonuses, commissions, or reimbursements. This structure helps retail businesses manage cash flow efficiently while supporting employees with predictable pay schedules.
Details of New Hire Paperwork
Requirements for the Retail Industry
Hiring new employees in the retail industry involves collecting specific documentation to stay compliant with federal regulations and ensure a smooth onboarding process. Here are the key forms and paperwork required for each new retail hire in the United States:
Form W-4
Every new employee must complete and sign the IRS Form W-4 before their first day. This form determines the correct amount of federal income tax to withhold from their paycheck.
State Withholding Form
Retail employers must collect the appropriate state income tax withholding form based on the employee’s location. This form ensures accurate payroll deductions and compliance with local tax laws.
Form I-9
All new hires must complete Form I-9 to verify their identity and eligibility to work in the United States. Employers must review and retain supporting documents as part of the verification process.
Workers’ Compensation Notice
Employers should provide a written notice explaining the employee’s rights under workers’ compensation laws. This notice should include instructions on reporting a workplace injury and what coverage and benefits are available.
New Hire Reporting
Employers must report all new hires and rehires to the New York Department of Taxation & Finance within 20 days of the employee's start date. This report should include the employee’s full legal name, date of birth, address, start date, and social security number.
Local Requirements
Follow additional paperwork requirements for new hires in Flagstaff.
Additional Recommended Documents
Employee Handbook
Share a comprehensive guide that outlines your retail company’s policies, workplace expectations, dress code, procedures, and available benefits.
List of Contacts
Provide a contact list with names and numbers for supervisors, HR representatives, and store management, making it easy for new employees to get support when needed.
Direct Deposit Authorization Form
This form collects banking information such as the employee’s bank name, account number, and routing number to streamline payroll through direct deposit.
Emergency Contact Form
Request the contact details of someone to contact in case of emergencies involving the employee while on the job.
Confidentiality and Non-Disclosure Agreements
Use NDAs to safeguard sensitive retail information for roles involving access to customer data, internal systems, or pricing strategies.
Job Offer Letter
To confirm employment terms, provide a formal offer letter stating the position title, start date, pay rate, work schedule, and applicable benefits.
Employment Taxes in the Retail Industry
Employment taxes and statutory fees affect retail employees’ overall payroll. Here’s a clear breakdown of known taxes in the United States for the retail industry:
Employer Taxes
| Employment Tax | Tax Percentage |
|---|---|
| FICA (Medicare) | 1.45% |
| FICA (Social Security | 6.2% |
| State unemployment insurance tax (SUTA) | Varies by state |
| Federal unemployment insurance tax (FUTA) (charged on the first $7,000 earnings per year of an employee) | 6% |
Employee Taxes
| Tax Type | Tax Percentage |
|---|---|
| FICA (Medicare) | 1.45% |
| FICA (Social Security | 6.2% |
| State income tax | Varies by state |
| Federal income tax | 10% to 37% |
Important Leave Policies in the Retail Industry
| Leaves Title | Law |
|---|---|
| Sick Leave | While not federally required, many retail employers offer paid or unpaid sick leave to support employee health and reduce absenteeism. |
| Bereavement Leave | Often included in retail workplace policies, this leave allows employees time to grieve and attend services for immediate family members. |
| Blood/Bone Marrow/Organ Donation Leave | Some employers provide voluntary leave to support employees who wish to donate blood, bone marrow, or organs. |
| Crime Victims' Leave | Retail businesses may offer flexible leave options for employees dealing with legal or personal matters related to being a victim of a crime. |
| Court Attendance/Witness Leave | Employers typically provide unpaid time off for employees required to attend court or serve as legal witnesses. |
| Domestic/Sexual Violence Victims' Leave | Many forward-thinking employers include leave for employees coping with domestic violence or similar situations, even without a legal mandate. |
| Election Officials' Leave | Employees who serve as poll workers or election officials are often granted time off at the employer’s discretion. |
| Family and Medical Leave | Retail employees working at qualifying businesses (50+ employees) in the United States are eligible for up to 12 weeks of unpaid, job-protected leave under FMLA. |
| Family Military Leave | Some retailers support military families by offering leave for employees managing deployment-related responsibilities. |
| Jury Duty Leave | Retail employers must allow employees to serve on jury duty. They cannot penalize or terminate employees for fulfilling their civic duty. |
| Legislative/Political Leave | Depending on internal policies, employers can extend leave to employees involved in legislative duties or political activities. |
| Military Service/Veterans' Leave | All employers must grant leave for military service and ensure reemployment upon return. |
| School Activities/Visitation Leave | Employers may support working parents by offering time off for school meetings, events, or emergencies. |
| Volunteer Emergency Responder Leave | Many retail employers honor community service by allowing leave for volunteer firefighters, EMTs, and other first responders during emergencies. |
| Voting Leave | Employers are encouraged to offer reasonable time off to vote, especially when employees' work hours coincide with polling times. |
| Public Health Emergency (Quarantine/Isolation) Leave | Many retailers follow federal guidance during public health emergencies and provide quarantine, isolation, or recovery time as needed. |
Comprehensive Employment Termination Details
Probation Period
Many retail employers evaluate new hires through a probation or trial period. This period typically lasts 3 to 6 months, allowing the employee and employer to determine if the role is a good fit before confirming permanent employment.
Termination Process
Retail employers can end the employment relationship when necessary, but must ensure that terminations are fair and do not involve discrimination or retaliation. Our EOR specialists help retail businesses manage terminations professionally and minimize legal risks.
Notice Period
There is no legal requirement for a notice period unless outlined in an employment contract or company policy. However, it is common for retail employees to provide a two-week notice when resigning to help ensure a smooth transition.
Severance and Final Pay
Severance pay is generally provided only if specified in an employment contract or company policy. Employers must pay out unused vacation or paid time off (PTO) when an employee leaves the company to comply with labor regulations.
New Hire Reporting
Employers must report all new hires and rehires to the New York Department of Taxation & Finance within 20 days of the employee's start date. This report should include the employee’s full legal name, date of birth, address, start date, and social security number.
Local Requirements
Follow additional paperwork requirements for new hires in Flagstaff.
Which Laws Apply to Your Retail Company?
In the United States, each state has its own laws governing the relationship between employers and employees. Businesses must comply with these regulations to ensure security and avoid penalties. At HR Options, our EOR service providers help you navigate and adhere to state and federal employment laws that apply to your organization. Here are some of the key regulations that may affect your retail business:
| Law | Applies To | Description |
|---|---|---|
| Human Rights Act | Employers with 12+ employees | This law prohibits discrimination in hiring and employment based on race, color, religion, national origin, disability, age, gender, and other protected characteristics. |
| Equal Pay Act | All employers | Requires equal pay for men and women performing similar work, with exceptions for seniority, merit, or performance systems. |
| Minimum Wage Law | All employers | It sets the minimum wage rates that retail employers must pay, including rules for tipped employees. Rates vary based on employer size and applicable federal standards. |
| Overtime Pay Law | All employers | Requires paying non-exempt retail employees at least 1.5 times their regular rate for hours worked beyond 40 in a workweek or over 8 hours a day, depending on jurisdiction. |
| Wage Payment Law | All employers | It mandates timely and accurate wage payment, protecting retail employees from theft and ensuring proper compensation. |
| Final Paychecks | All employers | Employers must pay all final wages due to retail employees by the next scheduled payday after separation. |
| Voting Leave Law | All employers | Requires employers to provide reasonable paid time off for retail employees to vote during elections if needed. |
| Workers' Compensation Law | Employers with 1+ employees | Provides benefits such as medical care and wage replacement for retail employees injured or ill due to work-related causes. |
| Meal Breaks Law | Employers with non-exempt employees | Retail employers must provide meal breaks (usually at least 20 minutes) for employees working 6 or more hours, with extended breaks for minors. |
| Family Medical Leave Act (FMLA) | Employers with 50+ employees | Eligible retail employees may take up to 12 weeks of unpaid, job-protected leave annually for serious health conditions, family care, or childbirth/adoption. |
| Occupational Safety and Health Act (OSHA) | All employers | Retail businesses must maintain a safe and healthy work environment by addressing hazards and following safety regulations. |
| Clean Indoor Air Act | All employers | This act prohibits smoking in enclosed workplaces and public spaces to promote a healthier retail work environment. |
| Paid Time Off (PTO) / Vacation Leave | Employers (by company policy) | No legal requirement to provide paid vacation; retail employers may set their own PTO and vacation policies, including accrual and usage rules. |
| Termination Law | All employers | Retail employers can end employment following fair practices and anti-discrimination laws; specific notice or severance rules depend on contracts or company policy. |
| Whistleblower Protection Law | All employers | Protects retail employees from retaliation when reporting violations or participating in investigations related to workplace issues. |
| Background Check Law | Employers in regulated sectors | Retail employers conducting background checks must comply with federal laws, such as the Fair Credit Reporting Act, especially in sensitive positions. |
| Social Media Law | All employers | Retail employers cannot demand access to employees’ personal social media accounts or passwords and must respect employee privacy on social platforms. |
Want to Build a Winning Team for Your Retail Company?
Partner with our EOR experts to simplify hiring, stay compliant, and build a strong workforce that keeps your customers coming back.