for my small business,  I am facing a problem with the payroll of employee.
Situation:
1) I need to pay fix wages to my employee.  minimum salary is. 50,000/- 
2) My employee are working on the remote location, different state.
3) For management perspective, I have no way  to get immediate
confirmation of their work ,  and output of their work.
4) Sometime, client is rejecting the work , based on poor performance.
5) If client rejects , I loose my money over there
6) Meanwhile, as per the govt.  rule for payroll employee, I have to
pay the employee,  so by the time I come to know abt the result of
their work, I would have pay them for 3 to 4 month worth of salary.
7) By the time , I realize, they did  not perform well, I already
loose a money. I can not cut from remaining salary , or someone would
have left the company.
8) As they are salaried employee, and  as per the rule  I need to pay
them fix $50,000/ yearly - salary. And state law requires to pay them
every month.

Solution expected from GA:
Is there any  legal way , where I can make a contract with a salaried
employee, to pay them mimimum prevailing wage ( required to  pay by
federal govt.) at the end of year? here I want to remain comply with
all the rules..
I need comparision statewise, so that I can think to reloacte  the
company , where I have favourable rules for employer.
I can pay half the salary of prevailing wages each month and remaining
salary conditional, at the end of  year. e.g. 2500/ each month 50,000
- (2500*12) = X
so X amount at the end of year. If client pass the work.
Thanks

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Clarification of Question by 4723-ga on 12 Jul 2005 08:07 PDT

Bonus system is the way, but I am not aware , with state and federal
rules with related to payroll, tax deduction and prevailing wage.
So if someone can study , state and federal rules pertaining to this,
that will be a help.
All material pertaining to payroll, prevailing wage, tax deduction is
available on state and federal website. And we can email them question
as well. Govt. official will reply as well. But it needs patience and
persistance. So if someone can spend time , with followup , he will be
the right guy.
Thanks
Let me know if my question needs more effort.

It sounds as if you might do better to use contract workers rather
than salaried employees. If you use contractors, you can pay by the
individual project, and if the work is not satisfactory, you can
easily jettison the person from consideration on future projects.

Because of the situation  of my work, I can not use  contractor. I
have to use salaried employee.

What about a bonus system based on client satisfaction  - of course,
with a reduced fixed salary?  This could allow the employees to
correct their work  - within a specified time-frame.  If this would
eliminate your present losses on some project, the bonus scheme could
maybe allow good employees to earn more than their present fixed
salaries.  The good ones should see the virtue of this; the poor ones
would at least know that they are on the line to produce.

Would that work?