Payroll managers encounter several types of issues with payroll processing due to variables in types of employees and federal and state employee/employer taxes. Payroll scheduling is another issue payroll manager must expedite according to state and federal Department of Labor regulations. A good source for this data can be found at the U.S. Department of Labor’s site. Payroll managers need to be sufficiently knowledgeable of the Fair Labor Standards Act (FLSA) regarding wages and hours and also ERISA (Employee Retirement Income Security Act), Comprehensive Budget Reconciliation Act (COBRA) and Health Insurance Portability and Accountability Act (HIPAA) for accurate payroll processing. With so much to know for one position, here are five tips to help make your payroll manager’s job a little easier.
Proper Employee Classification
There are several different types of employees. The specific type of employee is determined by the type of business. Employees may provide full-time, part-time, project temp or temporary work for a business. Employees may be hired on a permanent or sub-contractor basis. Permanent full-time and part-time employees may be salaried exempt or non-exempt. Project temps and temps may be hired through an outsourced employment agency. In this case, these employees may be hired as 1099 workers or they may be paid directly by the agency that places them with the company. Under FLSA, salaried exempt workers do not receive payment for overtime. Non-exempt employees are paid overtime. FLSA exclusions are outlined under §213 of this legislation. Insure that the payroll manager has access to sufficient payroll processing resources to make the job easier.
Payroll Policies
Present all new hires with the payroll policies of the business in an employees' handbook. Provide orientation if necessary so that payroll policies are clearly understood by all employees.
Choose an Independent Payroll Processor
A payroll manager's job is made much easier by choosing an independent, outsourced payroll processor such as Pacific Timesheet. There are many advantages to this. Some of these include:
. Timely, cost-effective payroll data processing
. Payroll management reports
. Efficient tax filing and submittal
. Effective electronic direct deposit to employees' bank accounts
Encourage Employee Direct Deposits of Earnings
By encouraging employees to rely on direct deposits of their earnings, the payroll manager and/or payroll processor can quickly and reliably transfer funds.
Timely Submittal of Employer Impounds
To avoid employer penalties for errors or delays in employer impounds to state and federal agencies, a payroll processor will manage this to make the payroll manager's job easier.
It's clear that the payroll manager's job can be made easier by engaging an outsourced payroll data and check processing expert. Choose the processor with the most experience in the industry. Also, choose a processor that offers additional services like tax filing and federal and state impound submittals.