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Is This Your Situation: You Want to Reduce Overtime

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Reduce overtime

As you prepare your payroll each period, do you wince when you see all the time-and-a-half money you are paying out because of overtime? It could be that it’s a temporary busy time, but maybe you need to be more proactive in overtime management.

Avoiding unauthorized overtime

Are you taking steps to keep employees from putting in extra hours that you haven’t approved? If you did not give an employee permission to work overtime but he or she does so anyway, under the Fair Labor Standards Act, you still must pay the employee overtime wages. Make sure you do the following:

  • Create an overtime authorization policy, put it in the company handbook and enforce it.
  • Remind employees about the policy in periodic emails.
  • Post notices about the policy in the company breakroom and by time clocks, for example.
  • Discipline employees who violate your clearly stated rules. Although you have to pay unauthorized overtime, the FLSA does allow employers to discipline those who ignore company policy.

Other overtime pitfalls

Even if you have a policy and everyone is adhering to it, there are other potential problems — but they have solutions.

  • Are you tracking time? You need to have a system, typically a software program, that will let you keep on top of who is working when. For example, you’ll be able to see that Employee A is already slated for 40 hours and so shouldn’t be given an additional shift. You will also be able to see that Employee B is otherwise working only 35 hours and thus is available for five more non-overtime hours.
  • Are you paying overtime unnecessarily? For example, sometimes you, or managers under you, give unnecessary priority to certain tasks. Consider whether a certain task can be done within normal time in the following workweek instead of being done in the current week when the required nonexempt staff is already approaching 40 hours.
  • Do you cross-train? Maybe workers in Department A are working into the night in a certain week while those in Department B can go home at 5:00. You may be able to cross-train your Department B employees to do Department A tasks (and vice versa), so no one goes over the 40-hour limit.

These are just a few thoughts about a complex situation — and there may be even more stringent state rules in your area. Give us a call and we’ll help you take charge of your overtime to keep it as low as possible.

 

Copyright 2018

Is This Your Situation: Feeling Overwhelmed with Payroll Regulations

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Your company is growing, and that’s great! You now have an office full of employees—and the headaches that come along with that: figuring out each person’s tax liability based on their W-4 forms, calculating overtime for nonexempt staff and more. Did you know you can outsource this whole task to a third-party provider?

Here are some of the advantages:

  • It frees up your time to do other things, like product development, sales and marketing.
  • You don’t have to become an expert. Managing payroll requires specialized knowledge and there are a lot of pitfalls that can lead to regulatory nightmares.
  • You don’t have to depend on one employee. Even if you have a staff member handling payroll, if that person suddenly leaves or is absent for an extended illness, you’ll find it nearly impossible to bring someone in immediately to take over. Meanwhile, problems will crop up.
  • You can actually save money by doing by outsourcing. Let’s say you and perhaps a staff member—both untrained in the nuances of payroll—incorrectly file paperwork. Before you know it, you could find yourself hit with penalties ranging from $500 to $1,000. The penalty costs will soon be higher than outsourcing would’ve been in the first place.

Of course, some companies try to save money by handing payroll over to an outsourced administrative assistant, who may be organized but unfamiliar with payroll rules. You’re still not off the hook! Even if this assistant makes a mistake, in the eyes of the law, you’re still responsible as the employer. You need an outsourced provider that is familiar with the many payroll rules.

To find out a little bit more about what the IRS requires, have a quick look at the payroll section  on the IRS website. If nothing else, it should convince you this is one task you don’t want to take on all by yourself. Give us a call today, and we’ll be happy to have a no-obligation talk about your particular situation and how qualified outsourced payroll solutions can help—no matter how small you are today or how big you’ll be tomorrow.

“Copyright 2018”

Investigating the Advantages of Outsourcing Payroll

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As fulfilled and engaged as your employees may be with their jobs, if they have any issues with their paychecks, it won’t take long for them to become frustrated. Some companies have dedicated payroll departments and others find it useful to outsource this process to one of many companies that specialize in payroll. How do you know which option is right for you? Here are some things to consider.

  • How big is your company? One of the biggest concerns when it comes to answering this question is how many employees your organization has on staff. However, the answer isn’t cut and dry. Small companies like to use payroll services so they don’t need to employ a dedicated payroll department. Larger companies like to use them to maintain consistency.
  • Do you need more than just payroll? There are other reasons to consider an outside vendor, especially if your small company also wants insurance or other services. An outside vendor may be able to meet a wide variety of your needs.
  • Are your employees exempt or nonexempt? Exempt employees are traditionally paid an annual salary. Nonexempt are usually hourly employees who receive hourly pay and qualify for overtime. The more complicated the payroll process, the more important it might be to outsource it.
  • How often is payday? Another thing to consider is how often you pay your employees. Salaried employees are frequently paid twice a month. Hourly employees might be paid every two weeks or every week. This is something a payroll service can work out with you to be the most effective for your type of business.

Do you have more questions about outsourced payroll? Call us today! 916-550-8174

Copyright 2018

How to Reduce Your Company’s Labor Costs

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Salaries and wages are one of the largest costs for any company and can feel like the most difficult to control. But it doesn’t have to be this way. At LCAF Payroll, we eliminate the stress that comes with payroll by providing full-service payroll options. We’ve also put together a list of areas to help you reduce your labor costs, making wages and budgeting less stressful. Read on to learn more: Read more

Picking Up & Processing Payroll: What You Need to Know

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Payday – it’s always a good day for your employees. Money in hand means bills can be paid, groceries purchased, school supplies brought home for the kids, and maybe even a little extra left over for dining out. But let’s be honest: payday is only payday if the checks arrive on time and are made in the correct amount. At LCAF Payroll, we know you care about getting payday right just as much as your employees do, so we’re here to make that happen. Read more

4 Absolute Truths About Hiring a Payroll Company

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At LCAF Payroll, we pride ourselves on providing quality payroll services that deliver. We are here to make the payroll process a breeze for our clients by offering a variety of self- and full-service payroll options. Read more