What do you know about payroll fraud? Have you given it much consideration? Payroll fraud is a crime in which employees use the payroll system to steal money from a company, and it does happen. In fact, an article in Forbes reports that 27% of all businesses experience payroll fraud and that small businesses are nearly twice as likely to encounter fraud as larger businesses are. As these statistics show, this is obviously a problem that should not be ignored. (more…)
Every four years, the calendar offers up a dilemma to the world: How exactly will you spend that extra day in the wonderful blustery gray month of February? Well, actually leap year doesn’t really present too much of a problem. It’s pretty predictable – it comes every four years at the same time. So not a whole lot of preparation is required. But there are other calendar irregularities that can cause a bit more of a problem. (more…)
Decisions. Decisions. Decisions. As a small business owner, it seems that there are always decisions to be made, and you are the one expected to make them. Determining the frequency with which you will pay your employees is one decision that needs to be made fairly early in the life of your business. Chances are that if you have employees you’ve already made this decision. So how can you be sure that you have made the right choice?
As with many business decisions, a good place to start is by looking at the applicable state and federal law. In this case, there are not a lot of rules that must be followed. Federal and state laws do require that employees be paid on a regular basis. That means that you need to decide how often employees will be paid and then stick to it. A business is not allowed to deviate from its usual pattern to accommodate a seasonal slump or an unexpected expense. In addition, some states have laws setting a minimum frequency at which workers must be paid.
After considering the legal aspects of this decision, small business owners must also take into account the financial aspects. As you may have guessed, it is more expensive to pay employees more frequently. Every time payroll is processed, resources are expended. If a business is doing its own payroll operation, then there is the employee time that is used to calculate the payroll and deductions as well as the cost to print checks or have the pay direct-deposited. If the business relies on a payroll service, the cost will be based on the number of times the payroll must be done.
Finally, small business owners should consider their employees when making this decision. Typically salaried employees are paid either once per month or semi-monthly while hourly employees are often paid on a weekly or bi-weekly basis. In addition, employees might have a preference (usually to be paid more often) that employers may want to take into account if possible.
If you have questions about your own payroll operation and how frequently your employees should be paid, The Payroll Department can help you evaluate your situation and determine what is best for you. With years of experience in providing reliable payroll service, we are able to help you work these kinds of issues. Just give us a call at (317) 852-2568.
The sunny days of summer are now a distant memory, and we are entering the dark and cold days of winter. In addition to the shorter days, longer nights, and generally colder weather, winter also brings with it an increased unpredictability. More severe weather events occur in the winter than in any other season, including snow, ice, sleet, and extreme cold. We usually get some advanced warning of these kinds of events, but the predictions of severity often do not match the reality of what actually transpires. (more…)
It’s no secret that small businesses and their daily practices can be quickly changed by changing laws. That is one reason that it is important for business owners to stay aware of changes and potential changes to relevant laws. Recently, legislation was proposed which would once again change the day-to-day operations of many businesses – this time in the area of employees’ schedules. (more…)
You know you’re having a bad day when a mistake you made gets covered by the local newspaper. Not exactly the kind of publicity you want! As this article reports, the town of Windham, Connecticut, recently found themselves in the middle of a payroll mess that resulted from problems with a new accounting system. (more…)
You may have heard of National Payroll Week. Started in 1996 by the American Payroll Association, it celebrates “many things important to each of us who work” according to their website, nationalpayrollweek.com. During National Payroll Week, workers are given a chance to share their opinions on current topics in the areas of work and payroll. This is a good chance for today’s workers to share their thoughts. (more…)
Everyone knows the importance of saving for retirement. Everyone knows that saving money consistently and giving it time to grow is the best approach to ensuring adequate funds for the post-retirement years. Yes, we may all know that we should be saving for retirement, but that does not mean that we are doing it. The fact is that setting aside money for the future is difficult. (more…)
Advances in medicine and improvements in safety have increased the life expectancy of Americans. People are living longer and staying healthier as they age. This has resulted in a new group of potential workers: people who have retired from their first careers but may not be ready to quit work altogether. Retirees make great employees. (more…)
You’ve got a long list of things to do, taking care of your business, your home, your family, and if you’re lucky, you’ve got a little time left to take care of yourself. One of the best ways you can look out for your own future is to plan for your retirement, especially if you are a small business owner. (more…)
As with many business decisions, a good place to start is by looking at the applicable state and federal law. In this case, there are not a lot of rules that must be followed. Federal and state laws do require that employees be paid on a regular basis. That means that you need to decide how often employees will be paid and then stick to it. A business is not allowed to deviate from its usual pattern to accommodate a seasonal slump or an unexpected expense. In addition, some states have laws setting a minimum frequency at which workers must be paid.
