Contributed by Janitorial Manager
When something goes wrong in your payroll workflow process, you’ll hear about it. Your employees get the wrong pay amounts, payroll taxes are incorrect, or the money in your bank account doesn’t look like what it should. These are frustrating and difficult interactions, but they are also 100 percent avoidable from the get-go.
Here are six tips you can start implementing today to put an end to payroll workflow problems:
1. Get your paperwork in order. This will include such things as making sure each employee is set up with the correct rate of pay and withholdings, as well as any additional factors such as health insurance or vacation time. You may also have contractors who will invoice you at different times of the month. Even if you do nothing else, keeping this information organized will make your life much easier when you run payroll.
2. Ensure your numbers are correct. There is a lot to track, including employee hours, payroll taxes for Medicare and social security benefits, and state requirements such as unemployment insurance. It’s not a bad idea to review these every year to make sure everything is correct. Your local small business association or your state’s department of labor may both be good sources for help.
3. Be aware of the wage requirements. Wage requirements vary from state to state and even within states in some locations. For example, 30 states and Washington D.C. have minimum wages higher than the federal minimum wage. In addition, at least 45 localities, including Cook County, Illinois, New York City, Los Angeles, and St. Paul, Minnesota, require minimum wages higher than their state minimum wages. And while a small number of states, such as Georgia with a $5.15 minimum wage, fall below federal wage requirements, it’s the federal laws that apply there.
4. Pay attention to court orders. Dealing with wage garnishment may not be ideal, but if a court order requires you to do so, you can be liable if you fail to follow through.
5. Follow the state payday requirements. You can find the requirements for your state on the U.S. Department of Labor website. As a few examples, employers in Iowa must pay their employees at least once per month. In Maine, employees must be paid “at regular intervals not to exceed 16 days.” New York requires a weekly payday for “manual workers,” and in California and Michigan, the “frequency of payday depends on the occupation.” Be sure to review your state’s Department of Labor regulations.
6. Automate timekeeping. One of the most difficult aspects of payroll workflow is that your employees are responsible for tracking their time by clocking in and out. It’s not often that they will forget, but it does happen. One solution that can help is to use a timekeeping software with geolocation to automatically clock employees in and out.
With a few solid steps in place, your janitorial payroll workflow can be free of problems and stress.