Payroll: Connecting a Company

Payroll: Connecting a Company

A company that expands becomes an entity of divisions working together toward a common goal. The most apparent connection is the company’s name and services. They all work toward a common goal. Even if the products offered change with each department, they all work together to benefit a core service. An automotive company may sell vehicles in one department, repair them in another, and collect payments in yet another department. They all give different products that tend to a core service. What else connects a separated company? The payroll department.

In a way, if the owners and operators are the mind of the company, payroll is the heart of it. From a central idea, payroll tends to every different part of a company. No matter how far removed from the central headquarters or service, payroll keeps the workers motivated and able to work. Information from all departments, rather based on selling or promoting a product, or operating the company itself, channels through Payroll. In turn, payroll sends information vital to a company’s finances throughout the company.

Some companies have branches that operate as their own entity, and have their own payroll separate from the central office’s. The payroll information and effectiveness of these branches still affect the central office. The profits generated by a branch of a company benefits the company as a whole, and to maximize profit, payroll must be handled effectively. A poorly done payroll in a branch can cost that branch profit, and therefore the entire company will lose funds.

Even an outsourced payroll department remains the heart of a company. Just because someone else is handling the responsibility, it still deals with the transfer of money to a company’s workers. The money the outsourced company handles is from the revenue that the company and branches create. Regardless if a worker is content with his present employment, it is the paycheck that will decide if they remain at the company, or remain productive at a company.

Make sure the connection that keeps your company together is strong and effective. Optimize your business with either a well equipped and experienced in house payroll department, or by outsourcing it to a trusted company such as Vision H.R. to handle your payroll services.

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The Consequences of a Bad Payroll

The Consequences of a Bad Payroll

Payroll is undoubtedly a vital part of what keeps a company running internally. It is the oil to the gears that keeps the business functioning. It can also be the rust that slows them down if not done correctly. A payroll department requires proper upkeep. It can not simply pay your employees for the time they have worked, it must also keep records of all it’s transactions, changes, everything must be recorded. When audits and tax seasons come around, a poorly kept payroll department could turn into fines and legal consequences.

This holds true with all areas of a business, but with payroll, where the handling of company money is it’s key feature, record keeping becomes even more vital. Done poorly, a company can lose track of it’s finances. It may believe it has more profit than it really does, because it paid an expense but did not keep proper record of it to refer to later. When it comes to tax time, they can be done quickly if recorded correctly. If not, they can become frantic, trying to figure out the amount that each employee made over the course of the year.

In case of an audit, poorly kept records can lead to an auditor failing a business, which can lead to hefty fines. An audit can often times be conducted randomly without warning. This means no time to put a companies records in order. Keeping proper records from the beginning eliminates this problem. When the auditor comes, you can feel confident that you are prepared.

Along with the business aspects of proper record keeping, it in general makes for a more tidy, and therefore more productive workspace. No one likes to work around clutter. When everything is neat and organized, a workspace can feel more spacious and welcoming. If you are not sure on how to keep a payroll office organized effectively, think about outsourcing it to a human resource company, such as Vision H.R.

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Payroll Fraud

Payroll Fraud

 

From the high dollar executive creating business deals to the man on the corner with a food cart, everyone is out to make a dollar. Our entire business infrastructure revolves around the gain and loss of money. Everyone gets money and everyone gives money. It is a beneficial merry-go-round that sustains the modern world. Some like to try and find a loophole in the system that allows them to take more then they give. Many times this is done through abuse of the payroll system.

Not only does this take money out of a company, it takes money away from hard working employees who earn what they keep. This is why it is important to recognize payroll fraud when it occurs, and to find effective ways to prevent it from happening.

Ghost Employees: A ghost employee can be an employee who has either quit or been dismissed from work that is still receiving a regular paycheck. It can also be a fictitious employee who never existed, or an employee’s friend. Mistakes can happen, and a former employee can be given a paycheck even after they have left, but if they do not report it than they are doing the same as stealing from the company.

More Hours than Time: When paid on an hourly basis, an employee’s pay is based on his hourly wage, and how many hours he has worked. Employees can not change their wage, they can however manipulate the number of hours they worked. Some can enter it manually into a computer system, others can clock out later than they actually left work, or have someone else clock them out

Lying About Commission: Commission pay is based on how many products are sold by the salesman, or by the income generated by the employee. Some can lie about the number of products sold, or exaggerate the income made by them. If this is done and discovered, the employee can be forced to pay the sum of the fraud, or have it removed from his future paychecks.

These are the most common forms of payroll fraud. They can cost a large amount of a company’s profit over time. Luckily they are also preventable with the right steps.

Segregate Duties: One person doing all of the payroll for the company can find the weaknesses a company may have, and capitalize on them. With no one else working with them, they are safe from the eyes of co-workers. It is best to leave payroll in the hands of more than one or two employees.

Data Mining: Many times fraud can be found by analyzing data. Research done by the company or by an hired accountant can show if two different employees share the same address, or deposit funds into the same bank account. They can detect abnormalities in employee information and help zero in on any employee committing fraud.

Be Effective, Be Organized: The most basic level of security to prevent fraud is paying attention to your payroll and to your employees. Take time on occasion to look through your payroll documents. Use the data along with your own knowledge of the company and employees to find anything that is out of place.

You worked hard to get your company started. Don’t let someone steal what you put so much effort into creating. Take steps to prevent fraud within your company. Don’t be afraid to outsource your payroll to a company such as Vision H.R. that will work with you to prevent fraud in payroll.

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Why Outsourcing Payroll is a Good Call

Why Outsourcing Payroll is a Good Call

A common interest for any company big or small is expanding their profit margin. Society progresses by how well it adapts and expands itself. Increasing the profit margin of a company is not just selling more products or gaining more clients. It also revolves around spending less of the profit earned. Because of this it may seem sensible to keep your payroll and human resource departments within the company. Is it really though?

Everything a company does to create more profit or cut costs will require funds in some way. An in-house payroll department has very obvious costs, such as hourly pay for those involved, costs for programs and printer costs. There are other costs that can show up from an in-house payroll department. Depending on the company itself, weighing these costs against the cost of an outsourced company may have surprising results. Below are some reasons you should look at the possibility of outsourcing.

Save Time: How much time will you be putting into payroll? An hourly wage has to be paid to the employee handling it. What if that employee was put to use somewhere else? What if you are the one handling it? Can you list 10 things you could be doing instead? Some business owners can most likely think of a 100 other things they could be doing to help their company grow instead of managing payroll.

Reduce Liability: Mistakes happen. Sometimes it is not always our fault that they happen. The world of payroll and human resources is evolving every day. Unlike the normal everyday mishaps that can be easily corrected or moved on from, payroll mistakes can involve heavy penalties and fines by the IRS. These mistakes can be as simple as missing deadlines on certain payroll items or tax time paperwork.

Less Complexity: Simplicity is bliss. It lets you work faster and get more done. Payroll can be filled with complex agendas. Keeping on top of tax and labor laws while also keeping track of your own payroll can be both confusing and time consuming.

Making Money: In theory, in-house may seem cheaper than outsourcing. From a pure payroll stance it may very well be. A point that must be taken into consideration is even if it costs a little extra, how much extra income will be made from the time it frees up? If outsourcing costs an extra 100 dollars a month, but it allows you to bring in an extra 300 a month in profit, then the transition will still be a sound investment.

As the old saying goes, time is money. Don’t fall behind because you got buried beneath unexpected payroll and human resource responsibilities. Move ahead with a helping hand and look at outsourcing options today.

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Human Resource Management in the Small Business World

Human Resource Management in the Small Business World

 

Owning a business can be the most rewarding and the most stressful achievement of your life. You are supplying the community with a service. You are a real name in the town now. Best of all? You finally get to make the decisions and be the one in charge for a change. You have been the customer and the employee. Now you are the business owner. Though this is wonderful it also comes with plenty of stress and responsibilities you never knew you would have to deal with. This is why many small businesses choose to outsource their human resource and payroll departments to companies like Vision H.R.

Is this the right decision for you though? When should a company outsource their human resources or payroll departments? There are a few questions you should ask yourself before making the decision rather or not to look at outsourcing options.

• The Size of your Company: The foundation of rather or not to outsource rests in the number of employees you have. If you have under 10 employees working under you, then outsourcing may not be necessary. If you have between 15 and 80, then outsourcing becomes a much more viable solution. When a small business becomes large enough to branch out and the employee count reaches into the 100s, then an in-house HR department may be an easier route to take.

 

• How Much does it cost to Outsource?: With any business decision, the cost must be factored in. Factor how much it would cost to perform the duties yourself or have another in the company do it for you, and place it against the cost of outsourcing. Also factor in the time and labor you are no longer using by outsourcing. If it will cost a little more to outsource, but increases your sales and business efficiency, than outsourcing can still be the best decision.

 

• How Much Control do you Want?: When you hire an outsourced human resource or payroll company, you are letting them handle these functions for you. You are not giving up control of these departments, the outsourced company will work with you. If you feel confident in their decisions, then outsourcing could be a good choice. If you want control over all departments and are not generally open to suggestions or new ideas, outsourcing could become more stressful than useful.

 

• What Do You Need?: Some companies offer more than others. Sometimes you don’t need someone handling an entire department, just a few smaller parts of it. Look for a company with various service packages to work with that will fit your needs. Going all out with an outsourced company when you only need recruiting services is not necessary.

 

There are several companies out there that will serve your human resource and payroll needs. Don’t settle for just any company. Take a smart approach to the topic and don’t be afraid to ask questions before coming to a final decision.

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Why Go Paperless?

Why Go Paperless?

 

Everything we do in life is dictated in some way by trends. The office is no exception. The newest and possibly most prominent office trend that is catching on is going paperless. Going paperless is a more cost efficient and effective method that can boost the productivity of a company’s payroll company. This helps a company better assess their financial progress and assets. When operating a company, every little bit of money saved builds up over time. This steady build of savings can be placed into other vital parts of keeping a company going. It can be used to boost employee morale through various activities and benefits. A company picnic or a pizza party to show that a company appreciates a job well done.

On the employee level going paperless is not only more convenient but also more cost efficient. Eliminate check cashing obstacles for your employees. For instance:

• Travel Time & Cost: After work an employee must drive to a bank to either cash or deposit their paycheck. This may only require a small amount of gas, but like the cost of paper and ink, this can build up over time. The burden itself of having to make an extra stop after a long work day is removed and also eliminates working around a bank’s schedule.

 

• Bank/Atm Fees: If an employee works after 4 on a Friday they may not have a bank to go to and cash their paycheck until the following Monday. If they have bills due they may require the funds immediately. Not only does your employee risk returned and non-sufficient fund fees, but you also have to take in consideration fees that may result from not being a bank member or fees from a local check cashing store.

 

For the payroll department, they experience their own benefits. Being they are also employees of the company, the above benefits the individuals involved in payroll as well. Other ways that a paperless office can benefit the payroll department more directly are:

• More Secure and Efficient Methods of Work: Any website that contains your personal information will come with some form of security to it. At least a required login and password. In recent years websites require more intricate passwords, requiring both regular and capitalized lettering, along with a number or symbol. This allows for a higher level of security then a thin metal file cabinet drawer can supply. It also allows for a cleaner office space void of paper stacks. When dealing with bank and financial information, security is not an option, but a must have for a company.

 

• Ease of Access: While stopping unauthorized personnel from viewing sensitive, information, a paperless office allows ease of access for authorized users. A computer can be set up and organized so all the information is a search bar away. Rather this is stored on a physical computer or in a cloud storage bank, it can all be easily accessed and displayed, emailed, or printed if necessary. When an issue comes up in payroll, it can be resolved quickly because of this.

 

• Secure and Accessible Backup Available: To create a backup of a paper document, one must create another paper document and place it in a separate location. Someone may have to send out for a replacement document such as a contract or a certification. With a paperless office, documents can be saved to a cloud storage, external hard drives, or various other locations. If a document is lost, it is a simple procedure to locate a duplicate to access.

 

Many businesses and companies offer a paperless alternative to receiving paychecks. Outsource companies such as Vision H.R. also offer paperless solutions to the payroll services that they offer. These methods are not only beneficial to the company, they are beneficial to the planet. Less paper used means less trash for landfills and less trees required to meet the world’s paper needs.

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What to do with Sick Employees ? Habitually Sick Employees, can I fire them ?

 What to do with Sick Employees ?

 

What can Employers do?

What can an employer do with an employee who is often absent? The employee says illness is the cause. The absenteeism is affecting productivity and the morale of other staff members. Sound familiar? What options are available to you?

Q. What happens if I fire an employee who is habitually sick? Or at least this is the reason he gives for being absent from work on a regular basis. This employee works in a production area as part of a team. His continual absences from work mess up the work routine and productivity of the whole department. Coworkers are as frustrated as I am.

A. You’re between a rock and a hard place. If you fire a truly ill employee you could be headed for trouble. (The rock.) If you allow an employee to immobilize you from taking action even if the employee is not truly ill, you’re looking at sagging production rates and poor employee morale. (The hard place.) You ask yourself what to do with sick  employees ?

Before you take any actions, you need to be aware of laws which may restrict what can legally do.

The Americans with Disabilities Act (ADA) covers employees of private companies which have 15 or more workers. The ADA protects employees whose illnesses or disabilities are considered serious enough to limit a major life activity. And in addition, don’t forget the Family and Medical Leave Act (if you have 50 or more employees within a 75 mile radius). Your state may also have laws offering protection to employees with disabilities or serious illnesses.

There is no course of action which will lead you to a quick, safe solution. But, you do have some rights as an employer. Limited as they may be, don’t fail to know what they are and use them. Here are some of the rights and protections you may have in your situation:

You may have the right to require your employee to be examined by a doctor to see if he or she is able to work.

You do have the right to expect your employee, who accepted a full-time job, to be available for work as the job requires, unless the employee qualifies for a job accommodation (under the ADA) or a medical leave of absence (under the FMLA).

It is the employee’s responsibility to make you aware of a health condition which interferes with his or her work.

Even if you are covered by laws like the ADA and FMLA, your employee’s health condition or reason for his request may not qualify under the law.

Note: When considering if the employee is protected by the ADA, keep in mind you must interpret and apply the ADA broadly. The ADA (as amended by the 2008 ADA Amendments Act) defines disability to include – not just a current, obvious disability – but also an “impairment that is episodic or in remission… if it would substantially limit a major life activity when active.” The term disability also extends to persons regarded as having such an impairment. An applicant or employee is regarded as having such an impairment if the “individual establishes that he or she has been subjected to an action prohibited under this Act [the ADA] because of an actual or perceived physical or mental impairment whether or not the impairment limits or is perceived to limit a major life activity.”

The amended ADA defines major life activities broadly to include such activities as caring for oneself, performing manual tasks, seeing, hearing, eating, sleeping, walking, learning, reading, reaching, interacting with others. Major life activities also include such major bodily functions as breathing, immune system function, digestive and bowel function, and bladder, musculo-skeletal, and brain functions.

Examples of disabilities covered under the expanded disability and major life activities definitions include epilepsy, hypertension, multiple sclerosis, asthma, diabetes, major depression, bipolar disorder, schizophrenia, and cancer.

ADA obligations apply to private employers with 15 or more employees. Covered employers need to train supervisors to broadly extend ADA protection to applicants and employees. Individuals must be evaluated according to their qualifications, not their disabilities.

What to Do:

Talk with the employee about his excessive absenteeism. If illness is the reason, ask if he expects his condition to improve so he can do his job. Ask if there is something you as the employer can do to help. Be honest with the employee. For instance: “The situation we now have is not working. What you and I need to do is reach an acceptable solution here. What do you suggest?”

In this situation, clients of Vision HR call in and talk with our HR Experts to get resolution and help towards what actions to take. Other similiar situations occur and having a partner like Vision HR is valuable to help you get answers and stay focused on the job at hand. To see how to partner with Vision HR, call 386-255-7070 and speak to an expert about your needs.

 

What to do with Sick Employees?

 

 Source:  Bizactions / Thompson Reuters

The Importance of an Effective Payroll

 

The Importance of an Effective Payroll

 

A vital and basic principle of any company is to both divide and unite the individual departments that make up the body of the business. A business is a single entity made up of multiple divisions all doing various jobs either related to core services of the company or to maintaining the company infrastructure. One such job that is weaved into every other job within the company is the payroll department. Payroll is more than just paying your employees a salary; it is built from vital information that can help maintain a company’s finances and operations. This is why payroll should be done as effectively as possible. Done right, payroll can help a company gain new insights into their business and make their employees more comfortable in their work environment. Other ways maintaining proper payroll services can benefit a company are as follows.

• A reduced chance of Health Care Reform related problems related to the company
• Clearer understanding of employee related tax and payment matters.
• Creating a smoother, faster, and more effective payroll system.
• Gain more control and insight into business expenses and profit gain.
• More security in your financial planning.

Sometimes the best option for a company’s payroll is to look at outsourcing options. Payroll management can be difficult at times due to an ever changing business landscape. Regulations in areas such as employee labor laws and health care reforms can change how payroll must be handled. Companies such as Vision H.R. that handle payroll services stay up to date on all legal matters that affect payroll departments. They are capable of maintaining and optimizing a company’s payroll and by extension, the company itself.

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How to Lay Off Employees

How to Lay Off Employees

Payroll is not just paying money to hard working employees. Sometimes it is also using information from payroll to decide when and where to make cuts to keep the company going. These cuts can be small, like taking the free coffee out of the break room. Most times though they are to an employee’s hours, and in some cases even their entire job. As a company expands, it will at times have to lose to gain. If a department that is based on an old technology or service is still on the payroll, it could be costing more than it is making. This is when layoffs and downsizing must be done.

Very few people enjoy telling an employee that they are getting laid off. The people who do enjoy it are typically not the most popular managers with the company for obvious reason. When it comes to keeping a company going, difficult decisions must be made. These situations are difficult for everyone in the company. The employer must tell someone they have lost their job. The employee has lost his job. The other employees are all nervous that they may lose their jobs. This is why it is important that when laying off employees, the procedure is done correctly. Know when, where, and how to approach an employee to make the entire progress a little bit easier.

• Analysis the Duties of your Employees: This is not a decision to take lightly. Do some research and observation of your employees. Make sure that the ones you are looking at dismissing from their job are really assets you can operate without. Seek out positions that are outdated or that can be absorbed into another department without much hassle. See who is taking the more out of a company’s payroll than they are putting back in.

• Don’t Drag Out the Process: If you are looking to dismiss multiple employees, do not let them take several days to complete. Other employees will notice their fellow co-workers losing their jobs and the longer it goes on the more they will fear for their own job. Stress in the workplace can be counterproductive and should be avoided as much as possible.

• Keep it Private: Losing your job is never easy to handle. Losing your job in front of your friends and co-workers can be simply embarrassing. Invite the employee into your office or another quiet location. The rest of the work place will eventually learn about what happened, but it will be more comfortable for the employee in general not to lose his position while being watched by a crowd.

• Have Information Ready: Don’t approach the employee without the proper information ready. Know how you are going to explain why his position is being terminated. Do not use names to designate a position, use the job title. Have information about severance packages and any other benefits available for the employee.

• Be Respectful: The employee may not work under you anymore, but he still knows the other employees who do still work for you. Make sure the employee feels like his contribution to the company was appreciated. How he is treated while being let go can affect the rest of the work place’s feelings about their own jobs.

• Don’t Use Email or Text: The best way to inform an employee he is being let go is in person. It may be uncomfortable for you, but it is a part of the job as an employer or manager. If the employee works away from the office in a position you cannot physically reach them at, use the phone and call them to inform them. Never use email or text messages. It feels highly impersonal and causes the employee to feel as if they were not appreciated enough to even be informed in person or by phone.

• Don’t Wait Till the Day is Over: The employee may love or hate their job, but at the end of the day chances are they are going to be tired from working. This is why it is more ideal to inform them of their termination earlier in the work shift. Maybe wait a little bit after they clock into work. Let them wake up a little first.

• Do not announce the Layoffs until those Affected have been Notified: Wait until the ones that you are planning on dismissing are told about their job being terminated before telling the office. Telling them before could start a small sense of panic in the office. The employees wondering who is next? Should they keep working if they are just going to get laid off? They start to gossip about who they think is going and staying and can cause tension between employees.

• Don’t Go all at Once: You shouldn’t prolong the inevitable, but neither should you rush it. Space it out evenly so it seems a well calculated situation and not a sudden downsizing where everyone is at risk.

• Offer to Give Referrals: It may seem like a small thing, but it shows that you cared about your employee and it can help them find a new job position. All it involves is a one page letter stating that the employee did his job effectively and was productive to the company

• Be Ready to Handle the Remaining Employees: The employees that remain after the layoffs are complete will understandably have questions about the future of the company and by extension, their own jobs. Speak to them about why you were required to dismiss some positions and be ready to answer any questions that may arise.

Though these tips may help ease the process, it will still be difficult and for some employees it can also be emotional. Go into the situation ready to do what must be done. It will be difficult, but the sooner and smoother it goes, the sooner it will be done with and you can get back to managing the company. The longer it takes the longer you are losing profit because of an out of date department.

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The Future of Retirement

The Future of Retirement

Life has been described with the metaphor of being a road we must travel. A road that scientist and doctors are expanding every day. They may not be wearing hard hats and bright orange vests, but they are definitely hard at work creating a better standard of life for us. Thanks to them it is common to see senior citizens in our everyday life. The old man sitting on the park bench beside the lake, or the old woman at the yard sale down the road. It can be difficult to believe that there was ever a time where the life expectancy of mankind was only about 35 years old.

Without modern day vaccinations, medical procedures, medicines, and standards of living, things we brush off with a quick trip to the drugstore were before extremely fatal. We had no way to stop an infection once it started. Things such as the common cold were a serious illness instead of a day or two spent on the couch watching TV. We didn’t have effective ways to filter water or prepare food. Luckily today we can live in a world much more sanitary and medically proficient than ever before. With the advancements we have made, the life expectancy of an American citizen has gone up to almost 80 years. That is just the expectancy. Some people are actually living comfortably into their 90s and in some extremely rare instances, up to 120!

What does this prolonged life expectancy mean for us besides a longer, happier life? It also affects our economy. Especially when it comes to retirement funding. The current retirement age in the United States is 65 years old. With the life expectancy growing, retirement funding will have to be stretched further for citizens entering retirement. Match this with the number of new citizens reaching retirement age,and more funds have to be taken from social security to accommodate everyone. With things on the horizon such as possible cures to various forms of cancer and HIV, these numbers could be seen to increase even higher.

With this growing demographic of persons 65 and over, changes to how retirement is handled will have to be made. Possible changes will be a higher retirement age and how pensions are handled. If you are not careful you could end up with less retirement funds and less time to spend them. Saving for retirement has always been an important part of anyones financial future. Now though with the future of retirement and social security being so uncertain, taking retirement into your own hands could be a crucial step in securing your future.

It is not just our social security system that is experiencing complications from this. Businesses are feeling the strain as well. Many businesses offer retirement plans and pensions to their employees. The number of plans and pensions they have to pay out to retired employees is also on the rise. This could have various effects on different parts of an employee’s occupation. It could mean less retirement based benefits, or possibly a lesser sense of job security.

Though this can all be alarming news, it is not something that will happen tomorrow or even within the year. It is even possible that a solution will be discovered before the issue really takes hold. This is an issue that affects every citizen, and various parties are looking at various solutions. Regardless of either possible outcome, it is still highly important that you know what options are available to you now. Contact the person handling your retirement benefits, rather it be your employer or an outsourced company such as Vision H.R.

The best prevention to any problem is being prepared now. Even if the situation never arises, you have the peace of mind knowing that you are ready to handle any problems that may arise.

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