High Quality Payroll and HR Services

Oct 16, 2023

How To Create a Payroll Policy

Your written payroll policy should define the nuances of your payroll function — wage definition, payment calculation, workweek and overtime computations, and more. Read through for some insights into how to organize the payroll policy at your company.

 

A payroll policy explains the process of payment — salary administration, timesheet keeping, wage methods and payment schedules — making employees conscious of what to anticipate on payday.

Your payroll management system, which details your obligations as an employer, should be such that it avoids costly noncompliance by detailing the payment of the right taxes for each employee and processing claims for expense reimbursements. Your payroll policy must also keep up with local, state and federal employment tax and wage laws. Your payroll system defines the responsibilities and accountabilities of all payroll staff and managers, including access and security levels.

Operations should be certified in detail, covering everything from employee hiring to separation. Procedures should cover payment processing —managing new contracts, time reporting, work changes, outstanding payments, data updates and deductions. Does your company use a payment processing service? You must still be on top of legislative requirements that determine the employment status of workers and need to be complied with.

Your payroll policy ensures that salary processing is executed accurately, consistently and transparently. With standard procedures, compliance and oversight, devise a policy that keeps an eye on government guidelines while adhering to your company's rules and regulations.

Know the key aspects

Keep the following in mind as you create a payroll policy:

  • Document your payroll policy with approvals and signoffs built in — writing payroll procedures shortens the learning curve when you hire someone or a company to take over payroll responsibilities.
  • Describe how employees document and submit timecards using any timekeeping system that works for your firm.
  • Document how often payroll checks are cut or how to submit payroll information or records to a payroll service so it can print the checks. How are employee wages calculated? How are payment adjustments made? What procedures are needed to deduct a workday wage if an error was made? Write down all the steps involved.
  • Communicate the payroll policy to employees and all internal stakeholders.
  • Maintain the records, such as W-2s, timecards and tax statements, for at least three years. Describe where the records are stored, filed and saved — electronically or on hard copy.
  • Define access and safety levels, differentiating various employee groups.

Once the first draft is written, ask an employee to follow the instructions to see whether the payroll is processed correctly.

Ask for feedback on instructions that had problems or didn't seem to make sense.

Write the final steps, refining and adjusting procedures into a final format.

Sweat the details

A payroll policy should specify and manage the responsibilities and accountabilities of staff. Since payroll covers sensitive and confidential information, the policy should be certified in detail in your handbook of policies — employee hiring to separation, how you manage new employee contracts, work changes, outstanding payments, data updates and deductions.

You must comply with a wide range of state and federal rules, such as determining the status of workers as part of the process. That's why clarity in your payroll policy, aside from creating an efficient department, builds a cohesive team and reduces the chances for misunderstandings or conflicts by being transparent.

Ensure all your employees have access to your payroll policy, update it to remain in line with any changes and keep open lines of communication — especially how to process payroll manually in case of emergencies.

©2023


 

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Sep 29, 2021

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Jul 23, 2020

Potential New FFCRA Rules from the Department of Labor

The guidelines surrounding employee leave due to COVID-19 are still evolving - stay on top of it all!


Jul 10, 2020

Q&A: COVID-19 Employer Guidelines

Managing employees is different than ever before - what should you be prepared for?


Jun 26, 2020

Employer on the GO Tutorial: Payroll Journal Access & Summary

A walkthrough detailing the contents of your payroll journal in Employer on the GO!


Jun 25, 2020

Employer on the GO Tutorial: Approve Payroll & Notify Provider

A walkthrough showing how to finalize your payroll and inform your provider with Employer on the GO!


Jun 24, 2020

Employer on the GO Tutorial: Preview & Process Payroll

A walkthrough showing how to preview your payroll before processing using Employer on the GO!


May 26, 2020

Employer on the GO Tutorial: Enter Payroll Hours using the Enhanced Pay Grid

A walkthrough showing how to enter payroll hours using the Enhanced Pay Grid from Employer on the GO!


May 19, 2020

Employer on the GO Tutorial: Navigate Enter Payroll Setup Menu

A walkthrough showing how to edit and understand the Enter Payroll Setup menu with Employer on the GO!


May 07, 2020

Should You Rethink Paid Leave?

Don't demonize paid time off - celebrate it!


Apr 28, 2020

Employer on the GO Tutorial: Access and Manipulate Payroll Detail Reports

A walkthrough to access and customize your payroll detail reports as an Employer on the Go user.


Apr 27, 2020

IRS Unveils 'Get My Payment' Feature

Curious about your eligibility for COVID-19 stimulus payments? Check out this new tool from the IRS!


Apr 24, 2020

Employer on the GO Tutorial: Payroll Document Access and Details

A walkthrough to access and understand your payroll documents package as an Employer on the Go user.


Apr 22, 2020

9 Advantages Of Automated Time Tracking

Take advantage of automated time tracking to optimize your workforce.


Apr 15, 2020

The Importance of Time-Off Management

Paid time off can be a great tool to improve employee morale and productivity.


Apr 13, 2020

Employer on the Go Tutorial: Quarterly Report Access/CARES Act Report

A walkthrough to access quarterly reports packages as an Employer on the Go user.


Apr 09, 2020

TimeWorksPlus Has Geofencing!

If you need to know whether or not your employees are working in the correct location, you need Geofencing.


Apr 07, 2020

Scam Warning: Fraudsters Using New Tactics to Steal Personal Data During COVID-19 Pandemic

Unfortunately, even in times of crisis, there are those who seek to benefit at the expense of others.


Mar 20, 2020

Why Is Taxation Related To Cannabis Businesses So Complicated?

Beware: 2020 Could Be A Banner Year For IRS Audits Of Cannabis Businesses


Feb 23, 2020

3 of 4 Business are Underinsured – Is Yours Protected?

Insurance often feels like an unnecessary cost - until you need it.


Dec 31, 2019

Six Payroll Problems To Keep In Mind

Getting a grip on your payroll can ease the burden on cash flow and help your company remain afloat.


Dec 30, 2019

Solutions To 7 Frustrating Employee Scheduling Problems

Employee scheduling doesn’t have to be a dreaded chore. TimeSimplicity is your solution.




More News & Press can be found in our Archive.


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610-310-7615


Payroll solutions and HR support for the cannabis and medical marijuana industry