How To Create a Payroll Policy
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…read more...