Paying your employees the incorrect amount can lead to the loss of thousands of dollars and a legal headache. There are several common mistakes made when paying employees. Here are a few common mistakes and how to avoid and/or fix them:
Correctly Classify Your Workers
Minimum wage and overtime pay are hard to keep track of for all of your workers, but a small mistake can lead to a big mess. Remember that not all salaried workers are exempt from overtime, not all interns can be unpaid, and not all workers without a salary or hourly wage are independent contractors. Turn to the Department of Labor (or the experts at Helpside) for specifics on how you should classify your workers.
Regularly Audit Your Pay Practices
Regularly auditing your pay processes can help you to catch mistakes in your wage and hour programs sooner, rather than later. It can be hard to keep track of everything happening in your company, especially when it comes to pay. Having a regular audit will help you to keep track of, and fix, your wage and hour programs.
Know the Actual Hours Worked
You might have a set work schedule for your employees, or an automatic timesheet, but there are other hours that can be compensable. Preparation time before or after a shift may need to be paid for. Additionally, if an employee works over a set break, you are responsible for paying them for that time. Make it easy for your employees to override the automatic timesheet system to put in any extra hours. It is ultimately your responsibility to know the hours worked. Helpside has timekeeping solutions for clients. Reach out to your Payroll Specialist if you are interested in learning more.
Don’t Ignore Problems
If any potential mistake comes to your attention, don’t ignore it. Ignoring problems will only create bigger ones later. Listen to complaints and take action immediately. It can be beneficial for you to have an anonymous way for employees to share concerns, such as a suggestion box.
Payment issues can cause a lot of problems for your company. Not only legal issues, but also upset and disengaged employees. Follow these simple steps and reach out to Helpside with any questions to make sure you stay in compliance.