We all look forward to summer, don’t we? Longer, warm days filled with sunshine and the prospect of fun draw us into a state of reverie with the prospect of letting things slip by. That doesn’t often fly with small business owners, and certainly not when it comes to payroll. In fact, summer is one of the most challenging seasons for payroll. Let me explain why.
The summer, seemingly laid paid, is packed for payroll processors
There are a variety of reasons for the volume of adjustments or changes in payroll rosters to increase in summer. Here are the top 3:
No. 1 Reason for Summer Payroll Changes – New or seasonal employees. Many businesses see a large influx in the number of employees on the payroll roster. Most often, not only do these employees need to be added at the beginning of the season, they must be removed (or made inactive) at the end of the season. Additional employees means more paychecks or direct deposits, too, in addition to the paperwork and process of adding and removing employees.
No. 2 Reason for Summer Payroll Changes – Vacations, PTO, and other days away. Vacations are part of just about every week when it comes to payroll processing in the summer. It is not just getting the pay right, but tracking days off, the classification of each, and making sure everyone is one the same page for time used.
No. 3 Reason for Summer Payroll Changes – Holidays. Everyone is happy to get that holiday day off to spend with family and friends. Maybe fun at the beach or park, or even a backyard gathering to grill dogs and burgers. For payroll processors, a holiday coming up means some else, too. It means making sure that employees are paid properly and on time. It means tracking holiday days off, or, for those working holidays, it could mean changes for special pay rates. There are no laws saying that employees have to be paid early if a payday falls on a holiday, but many employers see it as paying employees late – after they expect to be paid. In addition, with holidays that close banks and other government and financial institutions, the timing of direct deposits are effected as well as tax reporting and deposits. By the time the holiday arrives, your payroll service provider needs a day off!
Changes and adjustments increase the complexity of payroll processing
The fourth reason for payroll changes is changes in wages. That can occur at any time during the year, not more so in the summer months unless that is the cycle established by the employer. An increase in pay is always a happy time for workers, but there are a variety of adjustments that must be made prior to receiving the first check reflecting the increase.
Many deductions are calculations based on gross pay. Especially now, with the most recent tax law changes, employees are well advised to review and potentially adjust the deductions they claim in order that the appropriate amount of income tax is being withheld to prevent a surprise at the end of the year.
Don’t stress over your payroll, outsource it to professionals
At The Payroll Department, we review each payroll we process to ensure accuracy and compliance with labor laws. Some deductions are altered once an employee reaches a certain level of deposit or income. Our professional team has systems in place to ensure those benchmarks are identified and addressed as they come up for each individual on the roster.
While we all love summer and dream of long, lazy days, here in the payroll processing world, we know that we have to keep a keen eye open and stay on task each day. We enjoy the lazy summer days after the office is closed and the payrolls are all processed. It’s our promise to each of our clients – in summer, in winter, in every season of the year.
Call The Payroll Department at 317-852-2568 to eliminate the worry and stress of processing payroll at your desk. We know payroll and we will take care of yours just like your employees are our employees.
-Elaine of The Payroll Department Blog Team