Payroll laws are in a constant state of flux, making it challenging for HR departments to keep up. For example, states all over the U.S. will be increasing their minimum wage in the coming years, which will require changes in the way payroll is processed. Below are some effective tips that will ensure your payroll compliance is always on point.
Never Assume That Others Know What You Know
Keep communication lines with your workers open at all times and always double check to be certain they recognize their responsibilities in regards to payroll regulations, especially regarding overtime records or expense policies. Even if a policy has been established this doesn’t necessarily mean that every employee is aware or understands it. Employees should be frequently informed of what is expected of them and they should know how to document both overtime and expenses correctly.
Know The Regulations Of Your Region
Different states across the U.S. can have widely varying laws regarding taxes and payroll. It is your job to know the regulations of the region in which you operate like the back of your hand. You will need to keep abreast of changes regarding tax reporting for workers, minimum wage as well as maternity leave. You will also need to know the rules of your state regarding overtime and expenses. Remaining up to date on this information can be challenging, which is why many companies outsource or use payroll software.
Make Sure Employee Data Is Accurate
Errors regarding employee data is common, and can lead to all sorts of problems. It is essential to make sure your information is up to date and accurate and you should confirm it with every employee. This should not be seen as a one-off task as employee data such as address, bank account info and marital status can change frequently. The best way to handle this situation is to periodically schedule times when the personal details of employees can be confirmed and updated as needed. As the employer it is your job to maintain accurate records for your employees as long as they work for you.
Work Closely With Your Accounting Team
The accounting department is one of the best sources of information regarding compliance. Many, if not most of the questions you have regarding it can be answered by them. This is because they have a fundamental understanding of compliance laws in general and accounting in particular. They can help to ensure you’re doing it correctly. It is never easy to keep abreast of frequently changing laws which are written in complex language. Unfortunately, a failure to do so can be detrimental. Many top level employees will not work for corporations who make payroll mistakes, and the government can impose harsh and costly penalties.
As an employer, it is in your best interests to get payroll compliance right, each time and every time. In addition to the tips listed here, you can always make use of a reliable set of payroll software which automates much of the process and significantly reduces the chance of error.