The holidays are one of the busiest times of the year, especially for payroll personnel. Employees may be eligible for bonuses and overtime and additional HR staff may be necessary to ensure their holiday payroll is distributed accurately and on time. Here are some tips for doing that.
Always Factor In Overtime
Overtime is additional payment beyond the standard wages that employees usually receive. It will typically be given in situations where employees work beyond their usual number of hours or they work on holidays or weekends. The rules for overtime may vary by region but it will always play a big role in the operating expenses during the holidays. Therefore, it is best to plan for it in advance and hire an accountant to evaluate the costs.
Pay Close Attention To Employee Deductions
Payroll deductions for employees can be complex. While most employers understand the basics, calculating them may involve a number of different variables which can lead to errors. It is critically important to make sure that deductions are made correctly and then transmitted to the correct government agency by the deadline. If employee deductions are calculated incorrectly you could be held liable and face severe penalties, so it is important to make sure everything is done accurately.
One way to handle standard payroll deductions is through the usage of payroll software which is automated. Providing information regarding employee deductions on their paystubs will reduce the number of inquiries you receive and will give your workers peace of mind. This will also allow you to show them how much you contribute. When this information is not readily available to your employees they may be unaware of the value of the benefits.
Make Use of Payroll Software
Managing payroll manually during the holidays can be slow, tedious and prone to error. This is true even for smaller businesses. Purchasing and implementing a payroll software solution will allow the payroll to be done much faster and efficiently. Even those employers that already use payroll software may be able to benefit from an upgrade. A good software program will know when to deduct hours for full time employees who have worked less due to holidays.
A good software solution will also enable you to quickly create reports which will showcase the specific holiday pay that an employee has been given and when they received it. This is important as it is a question commonly asked by unions and government agencies. The paystubs of employees should always notify them of when holiday pay has been added, and a good software system will be able to designate and group holiday pay which is given only to select workers.
Payroll is inherently complex, and becomes more so during the holiday season. However, advances in software technology and computing have led to the adaptation of new software solutions which have made the process easier than ever before. Employers who take advantage of these tools will have superior, faster and more accurate payroll processing.