How can meal breaks cause problems for employers?
In California, non-exempt employees must take a minimum 30-minute meal break within five hours of working. There is a one-hour meal break penalty for every instance an employee does not fulfill this requirement. Meal breaks should be well documented using a timecard or electronic timekeeping system in order to support an employer in case of a claim by an employee. As you can see, payroll errors can add up quickly and even result in class action suits against employers.
What pitfalls do employers face with garnishments?
When a garnishment order arrives, an employee may say, ‘I don’t really owe that or that is a mistake.’ But an employer has a legal responsibility to withhold that garnishment beginning on the date that garnishment indicates. Without the proper payroll software in place to assist with calculating garnishments, the task can become very complex. Not withholding garnishments correctly carries huge fines up to and including jail time.
How can paying bonuses to non-exempt employees trip up an employer?
Many employers do not realize that paying additional non-discretionary amounts to non-exempt employees impacts their regular rate of pay, in turn impacting their overtime premium rate. Examples include: production bonuses, commissions, etc. This is one example of why it is crucial to have the right payroll expertise within your company to recognize these types of issues.
How can employers benefit from the HIRE Act W-11 credit?
The HIRE Act credit is effective Feb. 3, 2010, for employers that hire new positions or hire a replacement for someone who was not laid off. The credit is applicable to hires who did not work more than 40 hours in the 60-day window prior to their start date.
The employer is able to take up to a 6.2 percent credit on the employer portion of the Social Security tax on eligible employees who complete a Form W-11. There is also a business tax credit of $1,000 for employees who remain for 52 weeks.
Payroll is an integral part of an organization, requiring expertise, further education and dedication to accuracy. Without a competent payroll administrator, payroll compliance and complexities could become costly.
Christina Woodward is director of HR and payroll services at ManagEase. Reach her at [email protected] or (714) 378-0880.