Payroll and employee compensation are complex. To help you out, here are the 4 most common payroll questions our experts hear.
Our HR professionals get a lot of payroll questions. Why? Because it’s both complex and a crucial aspect of an employer’s relationship with their people. In other words, you don’t want to get it wrong. In fact, 49% of employees said they would start looking for a new job after just two issues with their paycheck. To help run your business smoothly and foster good relationships with your employees, here are the most common questions our HR advisors hear about payroll and employee compensation.
What happens when someone leaves the organization and you divide up the responsibilities among one or more people?
This situation is quite common. Start by looking at the individual’s compensation as well as the responsibilities they are taking on and the decisions they will need to make. Start from scratch when splitting up the job for other team members.
Sometimes the role and responsibilities are very different in terms of value and importance to the organization that employers may want to consider compensating the two roles differently.
What happens when you have multiple pay rates within the same pay period?
This is one of our most common payroll questions. Total the amount of hours worked and add up the rates of pay for a regular rate of pay. Use this average when calculating overtime pay. It’s also important not to go below the minimum wage for state or local requirements.
How often should you pay your employees?
Employee payment schedules are not regulated at the federal level. However, each state has their own law. It’s very important to understand what your state regulations are. States have specific rules based on the timing of payments.
For example, when you pay an employee in Arizona, you have five business days to disperse payment to the employee after the pay period ends. Check with your state to find out what your employer requirements are.
What happens if employees are not paid on time?
You might have a few disgruntled employees. Everyone counts on receiving a check for each pay period. The employer can also face fines or penalties if an employee reports you to the state Department of Labor. It’s important to pay correctly and on time to avoid negative repercussions.