Employer of Record for Oklahoma

Guide to Hiring Employees in Oklahoma

Your guide to hiring employees in Oklahoma, covering employment and labor laws, payroll, benefits, onboarding and taxes. You can also manage and pay your contractors in Oklahoma through Playroll.

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Capital City

Oklahoma City

Timezone

CST

(

GMT-6

)

Paid Leave

Sick & Voting Leave

Income Tax

0.25% - 4.75%

Employer Tax

2.7% - 5.5%

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How to Hire Employees In Oklahoma

Hiring in Oklahoma for the first time can be challenging, especially with the state's complex employment laws. Whether you're hiring independent contractors, setting up a legal entity, partnering with a PEO, or using an Employer of Record (EOR), it's essential to understand the local employment landscape. Playroll's comprehensive guide is here to help, whether you're onboarding local talent or relocating team members.

Here are four primary ways companies can hire employees in Oklahoma:

  • Establishing a local entity: Creating a legal entity in Oklahoma allows for direct hiring, but it can be costly and time-consuming. However, it gives you full control over employment and reduces risk exposure.
  • Partnering with an Employer of Record (EOR): An EOR, like Playroll, takes on the legal responsibilities of employment, acting as the employer on your behalf. This option streamlines hiring, payroll, and compliance with Oklahoma’s labor laws, helping you hire in Oklahoma without navigating the complex legal landscape yourself.
  • Working with a Professional Employer Organization (PEO): A PEO, such as Playroll, co-employs your team, managing essential HR functions like payroll, benefits, and compliance. Partnering with a PEO ensures you meet Oklahoma’s labor regulations while offering competitive employee benefits.
  • Hiring independent contractors: Hiring independent contractors can be more cost-effective, but Oklahoma has strict contractor classification rules. Proper classification is essential to avoid penalties for misclassification when hiring in Oklahoma.

Complying with Oklahoma specific employment regulations and federal laws is critical to avoiding legal risks and costly fines. Our guide focuses on hiring in Oklahoma, employment compliance, and how Playroll’s services can support your business as you navigate the complexities of hiring in the state.

Good To Know

As of 2024, Oklahoma's population is approximately 4 million, with a diverse workforce contributing to various sectors.

Oklahoma's economy is driven by industries such as energy (oil and natural gas), agriculture, aerospace, and biotechnology.

Oklahoma is a right-to-work state, meaning employees are not required to join a union or pay union dues as a condition of employment.

Oklahoma follows the employment-at-will doctrine, allowing employers to terminate employees without cause, provided it doesn't violate contractual agreements or discrimination laws.

Key Things to Know About Hiring in Oklahoma

Labor Laws in Oklahoma

Working Hours in Oklahoma

Oklahoma has specific employment and labor laws governing working hours, designed to protect employees’ rights and ensure fair compensation. Whether you’re hiring local employees or working with an Employer of Record (EOR), it's essential to understand the state's regulations around working hours to ensure compliance.

1. Standard Workweek and Overtime

  • Standard Work Hours: 40 hours per week for non-exempt employees.
  • Overtime Pay: 1.5 times the regular hourly rate for hours worked beyond 40 in a week.
                       

2. Meal and Rest Breaks

  • Rest Breaks: No mandate for rest breaks for employees aged 16 or older. Paid breaks under 20 minutes are optional but must be compensated if offered.
  • Meal Breaks: No requirement for meal breaks for employees aged 16 or older. Employees under 16 are entitled to a 30-minute meal break if working more than five consecutive hours.
                       

Minimum Wage in Oklahoma

As of 2024, the minimum wage in Oklahoma is $7.25 per hour, matching the federal minimum wage.

Overtime in Oklahoma

In Oklahoma, non-exempt employees must be paid overtime at 1.5 times their regular hourly rate for hours worked beyond 40 per week. Certain categories of employees, such as those in executive, administrative, and professional roles, are exempt from overtime under FLSA regulations.

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Onboarding New Hires in Oklahoma

We can help you get your new employee started in Oklahoma fast, with a minimum onboarding time from just 1-2 working days. Note that the timeline is dependent upon registration with the local authorities, and begins after the employee has submitted all the required information on the Playroll platform.

For non-citizens of the US, a work eligibility assessment may be required, and can add three extra days to the onboarding time. If a follow-up is needed, there may be additional delays.

Please note that payroll cut-off dates can impact the actual first day of employment. Playroll’s payroll cut-off date is the 10th of the month, unless otherwise specified.

Payroll Taxes For Oklahoma

Payroll taxes in Oklahoma are deductions employers must take from employees’ wages and remit to the state. These taxes fund various state programs and services, including unemployment benefits and disability insurance.

  • State Income Tax: Progressive rates from 0.25% to 4.75% based on income levels.
  • Unemployment Insurance Tax: Rates from 2.7% to 5.5%, depending on the employer's experience rating.

Payroll Cycle in Oklahoma

Employers in Oklahoma are required to pay employees at least twice a month. Public sector employees may be paid monthly. Employers must establish regular paydays and communicate them to employees clearly.

Looking to grow your team in Oklahoma?

Stay Compliant: Navigate Oklahoma’s complex labor laws with ease.

Affordable Solution: Reduce costs with a budget-friendly EOR option.

Top-Tier Benefits: Access competitive Oklahoma and federal employee benefits for a stronger team.

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Oklahoma Employment Taxes

Employer Tax Contributions

Employers in Oklahoma contribute to employment taxes such as unemployment insurance and workers' compensation. These taxes are essential to maintaining state programs.

Employer payroll contributions are generally estimated at an additional 2.7% - 5.5% on top of the employee salary in Oklahoma.

Employment Tax Type Tax Rate
Unemployment Insurance Tax 2.7% - 5.5%

Employee Tax Contributions

Employee tax contributions are generally estimated at 0.25% - 4.75% of employee salary in Oklahoma.

Employee Payroll Tax Contribution Tax Rate
State Income Tax 0.25% - 4.75%
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The tax-related information provided in this guide is intended for general guidance and informational purposes only. Reach out to our dedicated team for insights on remote hiring in Oklahoma tailored to your needs.

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Benefit Requirements for Employers in Oklahoma

Employers in Oklahoma are not mandated to provide specific employee benefits beyond federal requirements. However, offering benefits can enhance employee satisfaction and retention. Visit Playroll's Global Benefit Packages for more information.

Employee Benefits For Oklahoma

Competitive benefits are essential for attracting and retaining top talent in Oklahoma. Offering the right package helps employees feel valued and motivated. Our benefits experts understand the local labor market's trends, requirements, and expectations, ensuring your employees feel valued and supported. Common benefits in our Oklahoma packages include:

  • Pension or 401(K)
  • Vision Insurance
  • Life Insurance
  • Medical Insurance
  • Dental Insurance
  • Health Savings Plan (HSA)
  • Flexible Spending Account (FSA)

Paid and Unpaid Leave Policies in Oklahoma

Sick Leave

No requirement for private employers, but policies must comply with employment contracts if offered.

Vacation Leave

Not mandated by law. Employers can adopt use-it-or-lose-it policies.

Holiday Leave

Private employers are not obligated to provide holiday leave or premium pay.

Jury Duty Leave

Employees are protected from termination for serving on a jury but are not entitled to paid leave.

Voting Leave

Up to two hours of paid leave must be provided for voting under certain conditions.

It’s Easy To Manage Benefits For Employees In Oklahoma With Playroll

Employment Termination Protocols in Oklahoma

Hiring Employees in Oklahoma with an employer of record

Discuss how an EOR handles onboarding, including setting up compliant employment contracts, registering for taxes, and managing benefits like Oklahoma's superannuation system (if applicable).

The employer of record is responsible for:

  • Employment Compliance: Ensure all employment contracts comply with Oklahoma's labor laws and regulations, including proper classification of employees.
  • Payroll Management: Calculate, process, and distribute employee salaries in accordance with Oklahoma's payroll laws, including deductions for taxes and social security contributions.
  • Tax Filing and Contributions: Handle the registration, filing, and payment of employer taxes and social security contributions to the relevant authorities.
  • Employment Contracts: Draft and maintain compliant employment agreements, detailing salary, benefits, working hours, and termination terms in line with Oklahoma's legal requirements.
  • Benefits Administration: Provide mandatory employee benefits as required by Oklahoma's labor laws, such as health insurance, pension contributions, and statutory leave.

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Employer of Record for Oklahoma

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FAQS

FAQs About Hiring In Oklahoma

How to submit payroll taxes in Oklahoma?

Employers must register with the Oklahoma Employment Security Commission (OESC) and Oklahoma Tax Commission (OTC). Taxes can be submitted online through the respective portals.

Is there a minimum wage requirement for employees in Oklahoma?

Yes, the minimum wage is $7.25 per hour as of 2024.

Are employers required to offer 401(k) in Oklahoma?

No, employers are not mandated to provide 401(k) plans but may choose to offer them.

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