I always seem to get questions this time of year about paying overtime or “extra pay” to exempt employees. Many departments or companies have this time of year as their busiest and want to make sure that exempt employees can earn extra monies during this time without endangering their exempt status or actually converting those employees to nonexempt. I want to refer my followers to a great blog by Bill Pokorny of Franczek Radelet written for the Wage and Hour Insights blog that answers this exact question. I hope you find it useful.
Well it’s almost over, the 2018 election. Still having a few counts here and there with a runoff election still to come. But all in all, the 2018 election has come and gone. The only thing that remains, as it does after every election cycle here in the United States, is the discussion of making election day a national holiday. But what exactly does a “national holiday” mean here in the United States?
It appears to me that most people who discuss having election day designated as a national holiday don’t understand how holidays work here in this country. The United States does not have national holidays. It’s that simple. Yes, we have days that are designated as a holiday on the federal level. But these days are not official holidays for all employees in the country. They are, rather, the days that federal employees are given off with pay. I have stated this before, in other blogs, but will state once again. The United States is the only country that does not mandate that employees receive days off with pay in honor of national holidays. When I say other countries, I am speaking of course of industrialized countries. But this list of industrialized countries includes Chad, Peru, Slovenia and Sudan. So, we are not only talking about major European countries such as Germany or France. But if we were just looking at European countries let’s take Germany as an example. Germany has one national public holiday which is their German Unity Day, with the remaining 9 to 13 holidays being regulated by what they call their states even though some of them are held nationwide. Now this is in addition to 20 days of vacation as well as additional dates that the employer may give as a public holiday. Yet despite this they have a very strong economy. Yet here in the United States is not mandated for all employees to have the nation’s birthday, July 4th, off with pay.
Therefore, when local, regional, statewide, and national elected officials talk of having our election day as a national holiday it means nothing to the average worker if it were simply to be added to the holidays we already have. Yes, many employees may get Christmas off with pay, or Fourth of July off with pay, but not all employees are required to be given the day off with pay. It all depends on the company’s or employer’s policy. According to the Bureau of Labor Statistics workers in private industry in the United States receive an average of eight paid holidays per year based on the latest statistics in 2017. Workers in the manufacturing and information industries are more likely to receive paid holidays (97%). But workers in the leisure or hospitality industry only receive paid holidays 37% of the time. Not all workers receive the same holidays or the same number of holidays. For example, again the Bureau of Labor Statistics states that workers in manufacturing and financial activities receive an average of nine paid holidays per year while workers in leisure and hospitality receive an average of six paid holidays per year. For clarification, there are 10 annual federal holidays with Inauguration Day occurring only once every four years for a total of 11 days.
Before you start the discussion of employees who would not be able to have a day off due to their type of work such as first responders, hospitals and even restaurants, other countries have already addressed this issue quite easily. It is usual for the employee who must work on a “mandated holiday” to have another day off with pay. So, if on a Monday holiday, I would have to work as a police officer, I might get Tuesday or Wednesday off with pay in addition to my normal days off.
My question to all the elected officials and others who advocate a national day off to vote is this: Where would this national election day fall? Would it establish our first and only mandated national holiday? Or would it just simply be added to the calendar as another day to shop, BBQ or sleep in, if and only if, my employer decided to give me the day off with pay?
We have another guest blogger with some great info for you. Hope you enjoy it.
As attested by Pew Research self-named Generation Y (those born during the 1980s and early 90s) have eclipsed previous generations in regards to workforce involvement. In fact, according to a recent survey a vast majority of millennials feel that “flexibility and ambition” are closely associated. With 78% of this group more likely to have a full-time spouse/partner working, there’s little surprise that workplace formulation has made a tremendous shift. The upshot is telecommuting. Actually, businesses today are no longer put-off by home based work requests and frequently include work-at-home proposals in HR recruitment plans.
The increase in millennial contemporaries has introduced massive modifications in the way companies manage their staff due to remote employment. The millennial workforce is expanding, proficient, and au fait with the demands of today’s global economies.
The concept of remote workers continues to be an anomaly of sorts, as more convenient options of generating income has yet to sink into the psyche of the masses. To many individuals, the traditional way of working is the only viable means of employment. Questions like, how people get paid, how companies account for workers, and is it serious work are common. Unfortunately, short-sighted suppositions prevent many who could benefit from remote work the opportunity to take advantage of it.
Organization Advantages and Accountability
Consequently, a long-term sophisticated system must be established to consolidate the undertaking and oddities of the digital workforce, as telecommuting is now accepted as the adopted workforce for both large and small companies. As a result, many corporations have devised means of cutting costs in the current world of financial dubiety with access to a worldwide top-notch labor force.
Outsourcing is mutually beneficial for both companies and their remote staff. For example, individuals with physical limitations are able to find work while companies increase production, downsize office space and save on office equipment.
Nevertheless, making remote workers accountable is a sticking point for many corporations. What strategies and blueprints are foolproof enough to ensure that telecommuters are actually on-the-job and not sipping tea while watching the latest reality show?
Keeping Remote Workers Accountable
HR managers, CEOs, and IT folk at both large and small businesses, are hard-pressed to discover a way of guaranteeing that their employed remote workers are actually working. It’s much like maintaining a long distance relationship without the romanticism. What it comes down to is implementing a superb software program. Here are three suggestions on how to keep remote workers accountable.
- Consolidate Correspondence
Dissimilar to staff working in an office, remote staff may experience delays in correspondence due to a lack of face-to-face interaction. To clarify the situation, companies should consider arranging several specific communication techniques that coordinate with a virtual program for work at home employees. For instance, some businesses use social computer networks or employee apps like Blink or VeryConnect. These types of networks allow virtual staff to stay connected to other telecommuters who may offer assistance and management throughout the working day.
Another solution for communication issues include using Skype or Google Hangout in case of inaccuracies via chat or email. Of course, the good ole’ 19th century invention called the telephone is still viable in its 21st century incarnation known as a smartphone.
- Highlight Clarity
Remote teams require a sophisticated level of management and transparency across every line of work. In light of this, it is crucial to employ a system that allows access to a telecommuter’s tasks, work hours, pay arrangement (for instance by the hour or by each task), etc. Software systems like Time Doctor offers everything from time tracking and screen shots to web usage, payroll, reporting and more. This type of software tracking system helps employers keep remote workers viable and accountable.
Businesses must keep track of telecommuters working hours and additional vital information to make sure all is aboveboard; therefore, the correct software set-up is vital for companies and their teleworking staff. In addition, companies must make modifications and incorporate accountability into the workflow. Well-organized coordination between employers and remote workers substantially increases productivity according to Remote.Co.
- Planning Ahead
Working virtually is not exempt from stumbling blocks. In spite of that, there are a number of reliable methods to contend with the most frequent problems. For example, what if an employee has unreliable Internet? The best solution is to make certain that a potential team member has a stable connection before hiring them. In fact, a secure Internet connection should be a priority for remote workers. In case something does happen, a telecommuter should have access to a Wi-Fi hot-spot nearby. If not, stopping by the office is another option if it’s close by. Doing something is better than doing nothing and letting technical problems get in the way of a day’s work.
In essence, it’s about using common sense ways and means to anticipate difficulties that might arise from using remote workers and making provisions for them.
Vaishali Badgujar is a digital marketer at Time Doctor, a SaaS time tracking & productivity tool for companies & freelancers. She is an inbound marketing expert & specializes in link building.
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.
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.
The Tax Cuts and Jobs Act made significant changes to the tax law, including increasing the standard deduction, eliminating personal exemptions, increasing the child care tax credit, limiting or discontinuing certain deductions and changing the tax rates and brackets. While these changes did not affect the 2017 tax returns they will affect the 2018 tax returns filed next year. For this reason the IRS is continuing to push a “paycheck checkup” for all employees but especially seasonal or part-time employees. To assist employees the IRS unveiled several new features to help people navigate the issues affecting withholding in their paychecks. The effort includes a new series of plain language Tax Tips, a YouTube video series and other special efforts to help people understand the importance of checking their withholding as soon as possible including a withholding calculator.
Employees can use the Withholding Calculator to estimate their 2018 income tax. The Withholding Calculator compares that estimate to the employee’s current tax withholding and can help them decide if they need to change their withholding with their employer. When using the calculator, it’s helpful to have a completed 2017 tax return available. Employees who need to adjust their withholding will need to submit a new Form W-4, Employee’s Withholding Allowance Certificate, to their employer. If an employee needs to adjust their withholding, doing so as quickly as possible means there’s more time for tax withholding to take place evenly during the rest of the year. But waiting until later in the year means there are fewer pay periods to make the tax changes – which could have a bigger impact on each paycheck.
Among the groups who should check their withholding are:
- Two-income families.
- People working two or more jobs or who only work for part of the year.
- People with children who claim credits such as the Child Tax Credit.
- People with older dependents, including children age 17 or older.
- People who itemized deductions in 2017.
- People with high incomes and more complex tax returns.
- People with large tax refunds or large tax bills for 2017.
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.
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.
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.
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.