Tag: payroll

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Companies may pay the price for poorly managed payroll practices

compensation, payroll, blue collar

Culture may eat strategy for lunch, but a fair, well-oiled compensation plan can gobble up culture for breakfast, dinner and maybe even a midnight snack.

While culture indeed is crucial to engagement and retention, compensation still remains near or at the top of most employee satisfaction surveys. Poorly run compensation and payroll practices makes engaging employees an impossibility if they are not being paid fairly and on time.

Get a handle on your payroll practices

Employees deserve their paychecks on time. They also deserve to be accurately compensated for the time they put in. Both of these points may seem to be forgone conclusions when it comes to an organization making its payroll.

But according to a survey earlier this year, 32 percent of small business owners have made a payroll mistake at least once. What is more troubling, the same survey also noted that it took 56 percent of business owners longer than 24 hours to fix a payroll mistake.

That’s a problem for any employee. For those living paycheck to paycheck, a payroll snafu can be devastating.

Also read: Knock out the practice of buddy punching for good

Considering that employee engagement figures typically hover somewhere around 33 percent in good economic times and in bad, there is no faster way to turn a loyal staff member into a disengaged one than a blunder with payroll.

Automate payroll processes to eliminate delays and errors

Automating payroll may initially seem imposing. Organizations are locked into legacy practices, and payroll typically is one such function.

Some 39 percent of small business owners spend one to three hours on payroll per week. That’s hundreds of hours spent poring over timesheets, tapping digits on a calculator, assessing overtime and finally scratching out checks, which if the sun, moon and stars properly align there won’t be any mistakes.

Save a tree, cut back on paper-based payroll

Many organizations rely on a paper-based system, too. A 2017 survey revealed that 65 percent of people surveyed said that HR information is still managed using paper documents, paper-based processes and stored in filing cabinets. 

Implementing a payroll solution not only improves the company’s bottom line but it minimizes hours of repetitive tasks and effort spent on high-volume, low-value work. The result is a better functioning payroll system that affords time to focus on correcting errors, improving processes and delivering payroll efficiently and on time. Automation is assisting payroll teams perform their jobs in several ways. 

Managing compliance risks

It’s a challenge to stay abreast of tax laws, rules and regulations, especially for organizations working across multiple states. Payroll mistakes are costly and learning all the nuances to stay in compliance is a huge time drain. It’s crucial to stay on top of what it takes to remain compliant to reduce legal liability. Workforce.com’s payroll integration platform is designed to keep pace with labor law changes and ensure that pay rates are always updated. 

Gathering the metrics

Collecting timesheets from multiple departments and in varying formats is the height of payroll inefficiency. An automated payroll solution turns data collection inefficiencies into a faster and simpler task.

Move data quickly

An automated, integrated platform also allows for the smooth transfer of information between systems. There’s no need to wait on various departments or managers to file and then crunch their data.

Added expenses due to poor data entry errors and payroll oversights are avoidable. By upgrading an outdated payroll function with an automated platform eliminates inefficiencies, promotes compliance and allows employers to stay on top of wage costs.

With employment contracts, timesheets, benefits and labor laws, there are a lot of factors involved in payroll that can result in miscalculations. Workforce.com’s payroll integration solution connects with more than 50 payroll systems to ease compliance and enhance efficiency.

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Connecting to community with Grand Finale Desserts and Pastries

time clock, food

Justin Raha of Grand Finale Desserts and Pastries knows exactly why his business has been so successful.

Starting out as a baker’s apprentice with a passion for pastry, Raha eventually founded Grand Finale, starting out with a focus on wedding cakes and chocolate. He diversified to include more types of baked goods and pastries. Now, the small business employs five people and enjoys a good reputation among the local community of Grand Haven, Michigan. 

Locals supporting local

“We use Michigan blueberries, Michigan strawberries, Michigan raspberries. We use dried fruit and we try to use Michigan sugar, and we get Michigan eggs, and so everything that we’re getting we’re trying to get as local as possible.” These ingredients are what makes Grand FInale’s treats so special, Raha said. The result? Quality products at affordable prices, with the added bonus of supporting other local businesses in the area. 

Raha’s commitment to using local ingredients and participating in community events has solidified Grand Finale’s charm — they aren’t just another bakery in the area, but a recognizable name in the neighborhood.

Also read: Building a safety policy was vital to Shawmut Design and Construction’s health

“We give back to the community a lot which is really big. We have a really strong local community that is all about growth and support of each other and different tasks, fundraisers, organizations, and groups,” Raha said. “And so any opportunity we can to help out more for our community we try to do that, which has gotten really substantial in kick back toward our business because people see that we give back to the community and donate to them. Because of that they tend to want to come to us.” 

Smoother payroll with time clock software

Raha found Workforce.com through the mobile app store and thought to try it out. After trying a few other apps, he found Workforce.com the most user-friendly and affordable for Grand Finale’s needs, especially the notification aspect that allows requests to come in through email. Now, the small business has been using Workforce.com’s time clock software for over a year, as well as the employee scheduling features to keep track of operations.

While employee schedules are consistent, what the time clock software has done for them is make shift durations much easier to track. With all the data about when employees clock in and out, calculating wages is faster — Raha just sends the timesheets over to his accountant, and a process that used to take an hour now lasts 15 minutes. 

Sweet gestures

Whether it’s the local farmers’ market, events supporting mental health programs or environmental fundraisers, Grand Finale Desserts and Pastries is there to lift the spirits of anyone who tries their baked treats. Building trust between small business owners and customers over time, through authenticity and visible effort are the key ingredients to the bakery’s success.  

“They know we’re good,” Raha said. “They know that their money is going to stay local and get back into the community.” 

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Passion for getting it right: Spyder Surf’s secret to workforce success

Spyder Surf, scheduling,

“I fell into the role. I had no idea that I was going to end up in retail for the last 20, almost 30 years now,” said competitive surfer and Spyder Surf managing partner Dickie O’Reilly.

Founded by Dennis Jarvis in 1983, Spyder Surf has been a Los Angeles area mainstay ever since. And it has had no problem keeping up with the trends either, releasing new board models to fit all kinds of needs. O’Reilly has been with the brand from the start, seeing it grow from one small retail space to two Los Angeles locations.

Spyder Surf’s flagship store on Pacific Coast Highway used to be an 850-square-foot space. Today it boasts 7,000-square-feet of signature surfboards, wetsuits and other surfing gear. Likewise, Spyder II in Hermosa Beach has been showcasing their products to millions of surfers since 1997. Maintaining a strong presence in this competitive industry can be quite a challenge. Spyder Surf’s secret? O’Reilly and his team know exactly what they’re doing.

Creating a brand, shaping a culture

Spyder Surf’s story began where all good stories do: the passion for getting it right. Jarvis began competitively surfing in the mid-1970s. As a professional surfer, he quickly learned that his equipment could be better.

Also read: Building a safety policy was vital to Shawmut Design and Construction’s health

He grew up practicing art, so he decided to make the equipment himself. Soon after, he began shaping boards for some of his best contemporaries. “I was shaping boards for competing surfers, and I was surfing against them. We were all friends,” Jarvis said in a 2015 interview.

Jarvis was more than a pioneer though; he was also O’Reilly’s mentor.

“Competing as a surfer myself and dabbling in a little bit of the Pro Junior contests, he was my sponsor and he was making me surfboards. And then you have me working at the store. I worked there through high school,” O’Reilly said. After he graduated from college, an opportunity opened up for him to manage the store. He has been growing the business ever since. “He’s a creative genius and [an] amazing craftsman. A bit of a mentor for me for sure.”

Innovating for Spyder Surf’s workforce

When O’Reilly is not out on the beach, he’s thinking of ways to operate more efficiently. As managing partner, among his duties are monitoring attendance and processing payroll.

But when the administrative work cost too much time and energy, Spyder Surf turned to Workforce.com.

“You know, the fact that you uploaded all of our employee data saved me a ton of time there,” O’Reilly said when asked about his experience. “What was a half a day for me starting out payroll is now an hour at most, and the Workforce.com side of it is about 15 minutes. So that alone frees up my time to do the other stuff that’s more important,” he added.

Workforce.com’s Employee Time Clock App is installed on Spyder Surf’s tablets, which allows them to monitor their stores.

“Love being able to log in from anywhere and see who’s there — exactly when they got there, when they came, when they left, when they took their break or didn’t take their break at the right time. I’ve never seen it before,” he said.

And because it also generates timesheets that can be exported to an existing payroll partner, they are able to pay employees accurately and on time, at a fraction of the effort.

Also read: Payroll challenges eased by software solutions

Riding the waves into bigger things

Spyder Surf is showing no signs of slowing down. The brand continues to evolve, from their product lines to the way they run their stores. O’Reilly looks forward to using more of Workforce.com’s features. “I’m excited about seeing the lifetime salaries and comparing it with our sales,” he said.

Moving forward, O’Reilly’s team is balancing growth with keeping their tight-knit work culture alive.

“We would love to keep growing, but we’ve got a small core group of really good people that have been with us for a long time too. It’s a family,” he said. If their progress so far is anything to go by, Spyder Surf is riding the waves into bigger things.

O’Reilly is keeping a level head, though. “We do it slow and we’re going to continue to do it slow and make sure we do it right.”

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A technology integration is an intervention to dissolve common payroll errors

pay for performance, payroll, compensation

Paying employees accurately and on time should be a forgone conclusion for employers. But that’s not always the case.   

Incidents of unfair pay practices have surfaced since the COVID-19 pandemic hit. Lawsuits involving wage discrimination and unfair compensation practices also can cost an employer tens of thousands of dollars in damages.

According to law firm Seyfarth Shaw, wage-and-hour settlements are a leading cause of litigation exposure for corporations and that HR leaders must focus on prevention. While the majority of companies are fair and honest regarding their compensation practices, errors can occur. Prevent those mistakes from creeping into your compensation function by integrating workforce management software with your payroll software.

Eliminate the mistakes

Wage-and-hour lawsuits are unnecessary and largely avoidable. Payroll integrations in your tech stack can help ease a complex, arduous process fraught with opportunities for mistakes.  By integrating a payroll system with Workforce.com’s platform for automated timesheet exports and calculations, a company can negate costly wage-and-hour lawsuits.

  1. Poor record keeping and data entry. Mismatching names and Social Security numbers is so common that, according to AllBusiness.com, the Social Security Administration has established a special verification phone number. Errors in data entry and poor recordkeeping of employee hours can result in costly government penalties.
  2. Misclassifying employees. The number of temporary employees and independent contractors continues to grow among the labor force, and organizations constantly confront problems in properly classifying those workers. Are they exempt or nonexempt employees? Are they an independent contractor or an exempt employee? While the Fair Labor Standards Act provides protections for most employees, it’s still easy to slip up on employee classifications without an integration of workforce management software into the payroll function. If neglected, it can turn into a costly payroll error.
  3. Miscalculating pay and overtime. Poor time-tracking capabilities can lead to miscalculated pay. There are guidelines that must be followed when determining overtime, and miscalculations can be costly. Besides overtime, there are commissions and paid time off, among other things to track. State policies vary and it’s a best practice to default to the law that is more generous for the employee. Workforce.com’s payroll integration technology can help retool poor time tracking capabilities.
  4. Adherence to pay deadlines. Payroll is the basic bond between employer and employee. While payroll should function like a well-oiled machine, missing deadlines can happen. Payroll technology can help with establishing a payroll calendar that encompasses deposits as well as timely payroll tax filings with federal and state agencies. Remember, late deposits can result in penalties and interest charges. Oil up the payroll machine and set up timelines both internally for paydays and externally for taxes for a smooth payroll process.
  5. Mishandling garnishments and child support. An employee may owe money through a court order to other parties. Payroll is responsible for sending the money to the appropriate person or agency.

Avoid payroll errors

To avoid costly wage-and-hour lawsuits, HR and business leaders should keep these tips in mind:

  • A reliable payroll software program maintains accurate time-keeping and record-keeping practices through up-to-date systems.
  • Supervisors must recognize the differences between exempt and nonexempt employees.
  • Rather than hide it until it’s too late, encourage managers to proactively report wage issues.
  • Conduct wage-and-hour audits to ensure correct classification of employees.
  • Assess your independent contractors. 

Keep payroll mistakes from disrupting your organization by investing in payroll software. Workforce.com’s payroll system integration technology works seamlessly with more than 50 different payroll systems. Process your payroll minus the long hours, avoid the errors and easily run reports, file taxes and distribute pay stubs.

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Using software to simplify payroll and overtime

payroll, software

Scheduling employees is difficult. Creating a schedule that factors in overtime can make the task even more time consuming.  

For companies that run in shifts or have round-the-clock operations, overtime is often a necessity. Poorly managed overtime can result in unnecessary cost overruns, cause mistakes on the production line and result in fatigue-related accidents.

Don’t work overtime to figure out your employees’ overtime. There are digital solutions that can simplify scheduling, address overtime requests and streamline the payroll process. Utilizing technology to develop a sensible overtime policy is essential to streamline payroll and will result in a safer, more productive workforce.

Why institute an overtime policy?

According to the Department of Labor, employees covered by the Fair Labor Standards Act must receive overtime pay for hours worked in excess of 40 in a workweek of at least one and one-half times their regular rates of pay. An effective overtime policy helps employers sort through daily and weekly overtime calculations to remain compliant with state and federal regulations.

Balancing Productivity

Scheduling overtime is often done to meet increased deadlines. Scheduling with a hair-on-fire approach — a practice followed by way too many employers — doesn’t necessarily equal optimal productivity.

Inefficient shift schedules lead to excessive and ineffective overtime levels. Many operations with fluctuating work demands have outdated scheduling systems that leave some employees idle and others too busy. Scheduling solutions can solve that headache.

Consider how many employees are needed to work overtime without affecting your team’s mental and physical health. Evenly rotating overtime schedules also can cut the animosity between employees and encourage a more supportive environment.

How technology helps

Technology plays a huge role today in helping organizations manage and reduce overtime expenses and meeting rigorous compliance standards. If you’re still using manual timesheets, it’s time to upgrade to an automated timekeeping system.

Automating overtime management provides streamlined processing, an impartial implementation of policies, fewer errors and more accurate record keeping. Time keeping and employee scheduling software significantly reduces the workload for supervisors while balancing employee requests and providing significant savings with the elimination of unneeded overtime.

Many organizations already have access to all the data they need to predict overtime costs in their payroll and time and attendance software. However, they don’t utilize it to its full effectiveness and wait until the end of a pay period to begin a deep-dive analysis into employee hours.

Instead, be proactive! Incorporate real-time analytics to track hours as the week unfolds to help identify employees who are on track to work overtime and allow for changes in staffing to minimize or eliminate these situations. Extract the data and examine it in a meaningful, practical way.

Perhaps most importantly, your compensation data can help avoid costly compliance violations, overtime lawsuits and steep fines.

Delicate balance between work and life

Resources are thin. Too much overtime — or not enough overtime — can cause stress, fatigue and burnout. Consider your employees’ health, your workplace culture and your business’ bottom line when scheduling overtime.

Workforce.com’s software simplifies operations and untangles complex overtime regulations. It also gives the entire organization the confidence that employees will be paid correctly.