Payroll issues can cause a major hiccup and cause your employees dissatisfaction with you. It’s important to ensure you catch these potential setbacks before they present a problem.
1. Holidays Delays
Bank closures on federal holidays can sneak up on you at the time when payroll processing needs to be completed. Plan ahead for delays caused by holiday closures. If you have a printed schedule for pay periods and payroll dates, indicate on what day payroll is distributed when there is a holiday.
2. Human Resources Information System
Technology is great for business, but there are the occasional glitches that cannot be attributed to human error. Perhaps the HRIS server failed and consequently delayed or even canceled payroll. Consider backing up or outsourcing your payroll if you feel your HRIS is sophisticated enough to handle payroll accurately and efficiently.
3. Time Records
If yours is a business where an employee’s work hours are recorded by an automatic reader, you should invest in hard copies of time records. Just in case an employee forgets their card or forgets to clock out, you still have record for your payroll purposes.
4. Leaves of Absence
If an employee leaves due to health or family issues that are covered by the Family Medical Leave Act, determining payroll can be tricky. Your HR department should be able to help you coordinate the leave of absence, so ensure there is sufficient communication between you, the employee and the human resources specialist.
5. Bonuses, Wage Increases & Compensation Disparity
Many businesses conduct performance reviews and award their employees according to their achievements. Depending on when the appraisal is finished, delays can occur in calculating the appropriate amount of money. It is perhaps best to establish a system that the employees are familiar with that increases their pay sequentially.
Beaton Accounting has a tax service that can help you file all your deductions. If you plan on doing any of these 5 things, don’t forget that income tax rules differ from federal tax rules. Call our experts when you have concerns! For a FREE tax consultation, call TODAY! (621) 921-6894.
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