4 Ways Payroll Can Boost Employee Satisfaction

During the summer months I take a break from blogging but love it when I have guest bloggers who can provide my followers with interesting information. Today’s guest blogger has some great insight as to how payroll can help employee satisfaction.  Take a read from Sam at Https://indextimeclock.com

How many smiles greet you each morning when you enter the office? Can you honestly say your employees are satisfied and happy to come to work?

Of course everyone would rather be at home relaxing but good management can lead to a high level of employee satisfaction which makes for a smiling team that’s also highly productive. That’s a win for everyone.

But how do you get there?

What Determines Employee Satisfaction?

Will you be surprised to know in many studies compensation rates as the number factor in workers’ satisfaction with their jobs? So you can already see that your payroll department plays a vital role in getting this right. If no salaries are paid you definitely won’t see any smiles around you.

Of course this is a complex situation so there are many factors at play which you have to manage:

  • Being appreciated for work delivered
  • Relationships at the office
  • How the company fares financially (everyone wants to be proud of where they work)
  • Personal development
  • How interesting the work is
  • Feeling safe at work
  • Company values workers can be proud of

But why should you concern yourself with this? Because you don’t want to take the risk of having a high employee turn over rate. When you lose employees to other companies where they do find what they’re looking for you’re risking:

  • High costs to train new employees
  • Struggling to get the quality workers you need to grow your business
  • Gaining a reputation as a company no one wants to work for

But perhaps you’ve tried working on these aspects in your office but they don’t seem to stick. Are you sure you’re working with the root of the problem? Few businesses realize how much the payroll department in your business can affect your employees’ overall experience of their work days.

So let’s help you gauge whether payroll is helping or hindering your business. We’ll also tell you how to get it right from now on.

How Can Payroll Help?

Does Your System Put Them First?

What do you do when you respect someone? Usually it motivates you to put their wishes before your own. At the very least you’ll consider how your actions affect them. How often do you do this with your employees?

A late or wrong salary payment may seem trivial to you but for someone with bills to pay it can turn an ordinary day into a disaster. When you use state of the art payroll systems that rely more on AI and automated features than manual work you’ll see fewer salary glitches.

While you’re showing respect you also prevent a problem. When there are fewer disputes in the office you’ll see relationships will be healthier which will automatically make your group more excited to get to work each day.

Of course new technology requires a monetary investment from your side but this one decision will signal to employees that you have their best interests at heart. That will create loyalty from their side so this benefits you in the long run too.

Do They Feel Appreciated?

This one rates high on the list of factors you need to manage. And saying thank you at the end of each day won’t suffice.

Have you considered some of these tactics?

  • Personal discussions with employees regarding their work, performance reports and development in the company. This signals that you take notice of each individual.
  • Identifying how well someone settles in during an onboarding process. Talking about the challenges someone experiences and mentioning the value he or she already added will keep someone motivated.
  • Suggest personal development options such as training or skills courses. This could be an incentive or a reward for someone who delivers exceptional work.
  • Bonuses paid to individuals who reached certain sales goals.
  • When someone goes through a troubling time you can show compassion and provide some time off. This isn’t something people should take advantage of and your decision should be based on the value the individual provided before the problem came about.

Can you see how many of these processes involve your HR and payroll department? But the only way to keep track of all this information is with state of the art HR management and payroll programs. Digitizing employee files and creating reminders for setting up performance appraisals will ensure you don’t forget a step in the process of looking after employees..

Can You Pay Them More?

Of course all employees want to be paid more. You can’t always give them the salaries they dream of but while everyone gets busy with other tasks it’s the payroll office’s responsibility to ensure salary increases and bonus payments happen according to company policy & promises.

Don’t let this one slip. It sends a message of not caring for your employees which you should prevent at all costs.

Can you help them get it Right?

Many employees are used to being reprimanded for wrong doing. Something that’s not as common is getting help or resources to prevent the mistake in future.

Of course you don’t want to babysit your work force and they should take responsibility for their tasks. But in many situations employees do the best they can and managers should always look for ways to help them be more productive & accurate.

Filling in time sheets is time consuming and on a hectic day it’s probably the last thing your workers have time for. Hastily submitting paperwork often leads to mistakes and it’s understandable that this upsets the HR team & a worker’s manager. But why not make it easier?

Automated procedures with online clock in features such as the products you find on https://advancesystemsinc.com mean your workers don’t have to do any paperwork and all data will be accurate. With fewer misunderstandings and reprimands your workers are bound to feel more content coming to work.

At the same time you’re communicating company values such as accuracy, punctuality and excellence. Help them act according to these traits so they can be proud of what they achieve each day.

Important note: You’re not simply doing this to keep everyone happy. You’ll never again have to pay for work not done and you won’t waste time on salary disputes.

[Conclusion]

Do you see new hope for your company? A healthy—even happy—office environment can be a few adjustments away. Investing time into this outcome will have the long lasting effects you’ve only dreamed of so far. Good luck.

CA Adopts ABC Test for Independent Contractors

On Monday, April 30, the California Supreme Court issued a landmark [Dynamex Operations West v. Superior Ct., Cal. Sup. Ct., Dkt. No. S222732, 4/30/18] decision basically stating that the “ABC Test” is to be used when determining whether a worker is an employee or independent contractor for purposes of California wage orders. Previous to this latest decision the court case of S.G. Borello & Sons, Inc. v. Department of Industrial Relations, Cal. Sup. Ct., 769 P.2d 399, 3/23/89) was used to determine employee status. In that case the principal test of an employment relationship was whether the person to whom services were rendered has the right to control the manner and means of accomplishing the result desired. Under Dynamex, the Court embraced a standard that presumes all workers are employees instead of contractors and places the burden on classifying an independent contractor under the ABC test.

For a detailed analysis of this case and how you might have to adjust your hiring decisions, I will refer you to the Labor & Employment Law Blog posted by Timothy Kim for the law firm of Sheppard Mullin.

FLSA Video Training Has Arrived at DOL/WHD

The Wage and Hour Division (WHD) of the U.S. Department of Labor (DOL) is launching a new series of brief, plain-language videos to help employers understand their legal obligations when it comes to calculating overtime etc.  According the the WHD website these videos “strip away the legalese and provide employers with basic information…”  The topics provided so far are:

  • Coverage: Does the Fair Labor Standards Act (FLSA) apply to my business?
  • Minimum Wage: What minimum wage requirements apply to my business?
  • Deductions: Can I charge my employees for uniforms or other business expenses?
  • Hours Worked: Do I have to Pay for that time?
  • Overtime: When do I owe overtime compensation and how do I pay it correctly?

The videos are very well done and cover the rules quite nicely.  For example the overtime video does go into all the calculations needed for regular rate of pay.  They last an average of seven or eight minutes each. If you are looking for a good basic training on these topics listed check out the videos from WHD.

DOL Issues New Opinion Letters Including Lump Sums

The Federal Department of Labor (DOL) has been issuing a flurry of opinion letters recently.   But even more  amazing, is that one of the opinion letters actually deals with a subject long been a thorn in payroll’s side and one that some of us have waited years for a ruling.  The basic problem is whether or not lump sum payments such as bonuses are the same as normal wages under the law when it comes to withholding for garnishments.  You see many of the states do not think that lump sum payments fall under the Consumer Credit Protection Act or CCPA.  This is the Act, written in 1970, that sets the limits for what can be deducted from an employee’s pay for such garnishments as child support and creditor garnishments.  The DOL is actually in charge of enforcing the Act, but has always been unclear on their position on whether or not lump sum payments are covered under the Act.  This is especially true for child support, as employers may actually be required to report the pending lump sum payment and wait for instructions on withholding, usually for back child support owed to the state.  For example, according the the Office of Child Support Enforcement’s matrix on states and lump sums, Alabama requires 100% of all lump sums.  California states that it is subject to 50% unless the lump sum payment does “not involve earnings”. while Indiana follows the CCPA, So we have tried to look to the DOL to give a definition ruling on this and low and behold, they finally have.

In opinion letter CCPA2018-1NA the DOL has answered numerous questions on what constitutes earnings by discussing 18 different specific examples of common types of lump sum payments that an employer may issue to an employee.  These include commissions, discretionary and non discretionary bonuses, profit sharing, production bonuses, sign-on bonuses, relocation incentive payments and safety awards.

ALEC Wins Another State Over!

The American Legislative Exchange Council, or as it is commonly known ALEC, according to their website, is “America’s largest nonpartisan, voluntary membership organization of state legislatures dedicated to the principles of limited government”.  It’s current legislative agenda is to try to stop increases in the minimum wage and the mandatory sick leave movement as it sees it as having a negative effect on workers.  But in order to keep the minimum wage low or as ALEC describes it; “Maximizing the freedom of businesses and employees to negotiate their own wages” they not only have to convince state legislatures not to raise the minimum wage or provide mandated sick leave, but have to convince all local governments as well.  This is a tough job as there are thousands of local entities such as cities and counties that could decide to raise the minimum wage or enforce mandatory sick leave.  So ALEC takes the approach to tackle this from the head down by convincing state legislatures that they need to pass laws that prohibit any local entity from passing any type of minimum wage or benefit increase that does not equal the state level.  At this task they are making headway.  The latest state to buy into ALEC and bar local governments from passing a minimum wage or benefits ordinance is Wisconsin.

New legislation, A748,  prohibits counties, cities, and towns from enacting ordinances that: (1) establish or mandate local hour and overtime requirements, including scheduling employee work hours or shifts; and (2) require employers to provide employment benefits, including a retirement, pension, profit sharing, insurance, or leave benefit. The legislation does allow prospective employers to solicit salary information from previous employers and preempts counties, cities, and towns from prohibiting such solicitation.  The bill is effective as of March 30, 2018.

New Opinion Letter from DOL–NO Pay for FMLA Breaks

The Department of Labor is once again issuing opinion letters.  A flurry of letters were released on April 12th.  One letter addressed the issue of compensating for breaks that are covered under the Family and Medical Leave Act.  The Wage and Hour Insights blog authored by Staci Ketay Rotman and Bill Pokorny with FranczekRadelet covered this topic quite well so I decided to share it with my blog followers.  I hope you find it useful and insightful.

 

 

 

Show Down in Texas Over Sick Leave Looming

After Midnight, On February 16th, the Austin, TX city Council approved an ordinance establishing a paid sick leave requirement.  This requirement applies to all private employers located within the City of Austin.  The Mayor is expected to sign the ordinance.  This will have Austin joining the growing lists of cities and states requiring mandatory sick leave.  But before the City Clerk has even had the chance to verify the approved language and post the finalized ordinance, the state legislature began rumblings that they will take steps to curtail the Austin ordinance in its next session.

The Texas Tribune is reporting that just hours after the bill was passed state Rep. Paul Workman, R-Austin sounded off against the bill, saying the ordinance is “declaring war” on small private businesses.  According to Workman, “It’s not the role of the government to mandate for employers to do this”.   This again is going to come to a show-down between local control of the cities versus control in the state capital.  Something that organizations like the American Legislative Exchange Council (ALEC) have made good use out of to curtail the sick leave movement. We can only stay tuned to see how the show-down plays out in the state legislature.

FBI Warns of Another Phishing Scam Against Employees

The FBI is now warning employers of a possible phishing scam taking place.  This one targets the employees themselves. It focuses on companies that use self-service platforms where employees can view their pay, get duplicates of W-2s and update direct deposit information.  The fraudsters are impersonating the employer’s human resources department and asking employees to update or confirm their personal information via a fake website.  The employee receives a fake email that asks the employee to click on the link provided to log into his self-service account.  The email asks the employee to logon to view a private email from HR, to view changes that have been made to their account, or to confirm that the account is still active.

By clicking on the link and entering their self-service credentials, the employee is actually giving their logon information to the fraudster. The fraudster than can go into the self-service account himself and access all of the information including W-2 and pay stub info.  He can also change the direct deposit information. In order to prevent the victim from from knowing what is going on, the fraudster will also change the email address that the self-service platform uses to send alerts when changes are made.

Payroll and human resources professionals need to be on the lookout for this type of email.  With the new tax bill causing new tax withholding decisions, many employees are making good use of these types of self-service portals.  This will be especially true when the new Form W-4 is issued by the IRS.  Employees will want to make sure they have the proper withholding under the new tax tables.  And it would not be “unusual” for payroll or HR to send out emails during this time-frame.

It is also imperative to practice what the FBI calls “good email hygiene”.  Train your employees to watch for phishing attacks and to also check the actual email address rather than just looking at the display name.  Both these items can be crucial to seeing the attack early, before the damage is done.

W-2 Verification Code Program is Expanding in 2017

I attended the October 5th payroll industry telephone conference call.  On the call Scott Mezistrano, with the IRS Industry Stakeholder Engagement and Strategy, provided the listeners with updated information on the W-2 Verification Code Pilot Program for the 2018 filing season (2017 Forms W-2).

Where the code appears

First just a quick review of the program itself.  It was implemented during the 2016 filing season. Its purpose is to combat tax-related identity theft and tax refund fraud.  It requires a 16-character code be input into box 9 so that the tax filer can be verified when filing taxes electronically.  It only appears on the Form W-2 copies B (filed with the employee’s federal tax return) and C (the employee’s copy).   If the Verification Code (VC) is deemed valid, then the IRS treats the W-2 data submitted with the Form 1040 to be valid, thereby reducing false fraudulently filed tax returns.

For the 2016 Forms W-2 only ADP, Ceridian, Intuit, Paychex, Payroll People, Prime Pay and Ultimate Software participated in the test pilot program. If the taxpayer had a VC it was entered 34% of the time. However, when it was entered, it was validated 97% of the time.

For the 2017 Forms W-2 there will be 10-12 service bureaus or payroll software companies participating in the program. This includes the same companies as in 2016 along with the National Finance Center and a few more payroll service providers.  This should result in approximately 66 million Forms W-2 containing the code.  That results to about 1 in 4 forms that will be filed.

 

Not All IRS Guidance is as Good as Gold

Nina Olson is with the Taxpayer Advocate Service (TAS).  This is an independent organization within the IRS that assists taxpayers who are experiencing “troubles” with the IRS in getting issued resolve through the “normal channels”. During recent congressional hearing she was asked what seemed like simple questions concerning the types of IRS guidance taxpayers can rely on.  But the answer was not simple.  She has written a blog; IRS Frequently Asked Questions Can be a Trap for the Unwary on July 26, 2017, that contains excellent information for those of us who need to research tax questions and rely on tax guidance from the IRS.  I recommend reading it to ensure you know what you can and cannot rely on when researching the IRS website for tax guidance.