You might be thinking, “Wait, isn’t that what a performance review is for?” Unfortunately, performance management – or, as it has also been called, “performance review” has long had a negative connotation attached to it, when, really, it should be a positive and constructive experience. In fact, through my years of HR experience, I have seen how powerful and profitable a good performance management strategy can be for small businesses. (more…)
It’s pretty overwhelming when you think about it – one out of five new businesses are destined to fail. The top reasons for small business failures all tie back in some way to financial management. Cash flow, cash management and just knowing the numbers are at the crux of the problem. The reasons for that are probably pretty simple: many small business owners don’t go into business to do bookkeeping and be a financial analyst. They go into business to provide a product or service to the masses. That’s what really floats their boat. (more…)
Every small business owner understands the value of employees on some level. Day-to-day operations would fail without employees. As a small business grows, more employees are necessary to keep the doors open. And it does not take long for a business owner to recognize the boost that a good employee can provide to the bottom line. But does this understanding make a difference in how employees are treated? As this article explains, some companies have chosen to demonstrate just how much they value their employees by implementing specific policies. Can you learn anything from their example? Read on to find out. (more…)
As you can see, at the Payroll Department we focus on the key fundamentals in HR services. And the topic of job descriptions is definitely a key fundamental in HR matters for both employees and employers. There are three basic core benefits when it comes to creating a solid job description. (more…)
As an entrepreneur, are you trying to do it all when it comes to running your small business? While you may think you’re the only one who can do the work efficiently, that’s not really the case. If you want your small business to grow, you need to learn how to let go and start delegating tasks that really aren’t your forte. However, some entrepreneurs don’t want to hire full- or part-time employees to take on these responsibilities. That’s when outsourcing makes a lot of sense.(more…)
Employers cannot rely solely on the guidelines in the Fair Labor Standards Act. So, if you think you know that Act inside and out and you are safe … think again. Why? Because each state also has its own set of rules, regulations and laws by which you must abide if you are a resident of their state. And that can get you into trouble. (more…)
According to an article in Forbes by Matthew Garrett, payroll fraud is a problem. A really big problem. He says that 27% of all businesses are the victims of payroll fraud. And, small business owners beware, because Garrett says payroll fraud occurs nearly twice as often (14.2%) in small organizations with less than 100 employees than in large ones (7.6%). (more…)
As an employer, you set the policies for managing your small business and your employees. But you better make sure your payroll policies follow government rules. Otherwise, you may have to pay back wages and fines. Just ask Progressive Business Publications. The Pennsylvania company owes current and former employees about $1.75 million in back wages and damages for docking its employees’ pay for bathroom breaks. (more…)
Minimum wage is a hot topic in the media these days, but we aren’t going to debate increasing the minimum wage to $15. The amount may be under debate, but the one thing that doesn’t change is the fact that employers have laws to follow regarding minimum wage. (more…)
As a small business owner, you’ve probably heard that Indiana and other states are at will employment states. But do you really understand what that means you are allowed to do or not do when it comes to terminating employees? Even in this area of your payroll process, The Payroll Department can help with information you need.
Basically, at will employment means you can terminate an employee with or without cause, at any time, without adverse legal consequences. However, you cannot terminate an employee for illegal reasons. Additionally, you don’t have to provide advance notice of termination. For example, at-will employers can:
Promote and demote employees.
Make unannounced pay and benefits cuts. As long as the pay cut doesn’t take the employee’s wage below applicable federal or state minimum wage.
Reduce paid time off.
Change work schedules – limiting hours or requiring on-call work.
Set your own policies.
Alternatively, employees can leave a job at any time, with or without a reason, without legal recriminations, too.
However, there are state and federal exceptions to this law. You cannot terminate employment for any of the following reasons:
Discrimination or harassment based on race, gender, national origin, religion, age (40 and older) and disability. This discrimination may occur before, during or at the end of employee’s
Retaliation against employees who complain about discrimination or harassment toward themselves or others, or within the company, or who participate in an agency or court proceeding concerning discrimination or harassment.
Jury duty attendance.
Filing or threatening to file a worker’s compensation claim or claim for unpaid wages.
Refusing to perform an illegal act, such as refusing to drive a truck that exceeds legal weight limits, or reporting illegal activity.
Additionally, you cannot terminate an employee at will if:
The employee has an employment contract which states the employee is employed for a set time period, or outlines specific situations or employee actions that may lead to termination for cause. Reasons for-cause termination may include poor employee performance, employee misconduct or economic necessity.
The employee is covered by a collective bargaining agreement that specifies the employee can only be terminated for cause.
The employee gave up job protected status with their former employer to work for you.
As a small business owner, you’re probably more knowledgeable in the actual running of your company rather than every local, state and federal law concerning employment, payroll and taxes. Therefore, to avoid errors that can lead to substantial fines and penalties, consider hiring The Payroll Department. As an experienced payroll services provider, we can handle your payroll and payroll taxes for you, so you can get back to managing your business.
Basically, at will employment means you can 