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Tuesday Tip: Salary Exempt Absenteeism

Employers should be careful how they deal with absenteeism by exempt employees.

Don’t dock an exempt employee’s paycheck for missing less than one full day of work because it could destroy their exemption and entitle them to time-and-a-half for all overtime they have worked in the past or work in the future. However, the FLSA does allow for partial day absences to be paid through an employee’s accrual bank of PTO, Vacation, or Sick hours. The only exception for docking a salary exempt employees pay for a partial day absence is if the absence is covered by the FMLA, and the employee has exhausted their accrual bank hours.

Full Day deductions of pay from a salary exempt employee are allowed only under the following circumstances:

  • dilemmaDuring the initial or final week of employment the employees pay may be reduced to reflect the actual hours worked.
  • Full-day absences for personal reasons.
  • Full day absences for disciplinary suspension for safety violations.
  • Full day absences in which an employee has exhausted their entitled Paid Leave plan balances.
  • FMLA Absences.

Two other attendance issues protected by law are employees called to jury duty and employees who request time off for religious reasons. State and federal laws generally require employers to give workers leave when called to serve on a jury. And employers may have to bend their attendance rules to accommodate a worker’s religious practices or beliefs.

A key to curbing abuse is to have an absenteeism policy that clearly sets forth which absences are allowed, and what behavior will subject the employee to discipline.

Are Ghosts of Employees Past Haunting Your Bottom Line?

This month, as 2014 comes to a close,  we are taking a look back at some of the most important blog topics we have covered both in case you missed them, and to help you prepare for 2015!

Are Ghosts of Employees Past Haunting Your Bottom Line?

A ghost employee is one who exists on paper but does not exist in the workplace. Ghost employee practices can cost employers hundreds to thousands of dollars each year. Ghost employee frauds effect the bottom line of businesses just as any other type of theft does; and can occur in many different ways.

Some of the most common ghost employee practices are:

  • Payroll clerk adds a non-existent (ghost) employee into the payroll system, sets up a direct deposit account for the ghost employee, and then uses the funds for themselves.
  • Payroll clerk leaves terminated employees on payroll so that he/she can keep the former employees paycheck for personal use.

Some ghosts actually do exist; just not to the number of hours that you are led to believe they do. Common practices for ghost employment hours are:

  • Workers show up at the job site, clock in and then go off site. They are clocked in, but not actually working. These are ghost hours.
  • Ghost employees can also clock in at multiple locations, charging you for hours worked at two places during the same time frame of hours.

So how do you avoid these haunting schemes? HR Strategies can help in identifying payroll processes and controls to avoid ghost employees. Our HR Consultants and Payroll Specialists are here to answer any of your questions and concerns regarding Ghost Employees. 770-339-0000.

Independence Day is Coming Up!

Independence has been a goal of Americans since the founding of our country, and those with their own companies tend to be particularly independent. Some people start their own business believing that it is the only route to “life, liberty, and the pursuit of happiness”; only to later realize the headaches that can come along with owning and managing a business. While they began their business to gain independence, they lose the freedom that they dream of. They become saddled with letting their business’ rule their lives, depriving them of time with family and friends, and even at times their health.

american flag drawing

It is time as business owners to create your own Declaration of Independence!

  • Independence from rising administrative costs. Outsourcing your HR administration relieves business owners from the complex HR matters of benefits, workers’ compensation claims, payroll, tax administration, regulatory compliance, etc., and by doing so reduces your overhead.
  • Independence from focusing on the mundane. Outsourcing your HR enables small business owners to focus on their core competencies, rather than focusing on running payroll, providing employee benefits, or the many other facets of human resource administration. Outsourcing allows business owners to concentrate on their passion, without being distracted by countless human resources responsibilities.
  • Independence from the worry of regulatory compliance. Outsourcing your HR administration can keep business owners compliant by working as their off-site HR department, with the back-up of legal counsel partners, firms specializing in workplace law. Outsourcing can help you reduce your risk and vulnerabilities to Federal, State, Local and Professional Regulatory changes.
  • Independence from the nightmare of Workers Compensation Insurance and Risk Management. Outsourcing can help improve the work environment and make it safer by focusing on workplace risk management, safety programs, and good human resource practices. Additionally, when you outsource with a PEO, such as HR Strategies, they can arrange workers’ compensation coverage with major insurance carriers, provide their clients with training on safety and government compliance in regards to workers compensation and risk management, and manage the complexity of claims.
  • Independence from the burden of human resource administration and paperwork. When you outsource your HR needs to a PEO you receive assistance with all of the complications and paperwork that go along with the employee lifecycle:  writing help wanted ads and job descriptions; drug screening and verifications; new hire candidate assessment tools; new hire paperwork, including I-9 compliance; customized employee handbooks; employee policies and procedures; Federal and State required postings; human resource, supervisor, and compliance training; EEOC claims; Employment Practices Liability Insurance; Employee Assistance Program; compliance with IRS, INS, ADA, EEOC, FMLA, FLSA, DOT, COBRA, Title VII, etc.; discipline and termination counseling; investigation of employee/employer and employment complaints.

 Declare Your Independence today by calling HR Strategies at 770-339-0000!

A Few Friday Testimonials

“I have been very happy with the service. Everyone is always professional. Our Payroll specialist has always been there to help me with all my payroll issues. The entire team is outstanding to work with! I would recommend them to anyone.
– Construction

“All of our payrolls have been delivered in a timely manner and their staff members have gone over and above to accommodate our needs. I really like the fact that we have gone to a paperless system. I do not have to deal with checks or check stubs. Everything is either directly deposited into a bank account or put on a debit card.”

– Medical

Not Just a “Payroll Company”

While HR Strategies does provide payroll services, payroll is just one of the many responsibilities we take care of for our clients. However, when it comes to payroll, we will go to any length to make sure our clients and worksite employees get their payroll on time.

HR Strategies Delivers All Payroll On Time During Week-Long Ice Storm

Challenges:

With HR Strategies powerful integrated on-site support and personal service, clients can rest assured that the responsibilities of payroll have been handled completely and accurately, even in the most adverse conditions. In February 2011, a large portion of Georgia, and therefore Metro Atlanta, experienced heavy snow and extreme winter conditions which are unusual for the area. Metro Atlanta, including Duluth where HR Strategies is headquartered, is not used to extreme winter conditions and can easily have its roads and infrastructure crippled by large amounts of snow. The snow storm that affected Georgia in February of 2011 was dubbed “snowpocalypse”, and caused many school and business closings for several days. While employees may have enjoyed having a few extra days at home, they still needed to get their scheduled paychecks. Employers were already worried about loss of revenue from being closed for business, and the thought of having disgruntled employees from a delay in payroll was an added worry on their shoulders.

Solution:

HR Strategies understood the need for client employees to be paid, and the need for the client to have one less business concern during the stress of an unforeseen circumstance prohibiting business and life “as usual”.  On the Friday before the big storm, HR Strategies staff came together and devised a plan to ensure that payroll processes, and all other client needs, would be met in case of inclement weather.  On Monday, when it seemed that the world had closed down in Georgia, HR Strategies was armed and ready for business as usual.  Beginning that morning, payroll specialists were busy getting to work, only this time it was in their homes. The entire staff took advantage of their ability to work remotely and were able to continue business as usual, to the best of their abilities from home. Payroll specialists took hours over their cell phones from clients, ran the processes and reports, sent direct deposit and bank files, all from home.  They were able to keep in contact with each other and the rest of HR Strategies staff through conference calls, and ensure that all clients were handled.  The owner and CEO of HR Strategies, along with one designated payroll specialist, was able to make it to the office to pick up live checks and reports that had generated to be packaged for clients. These live checks were then hand delivered by the owner to the client locations, as most courier services (i.e. FedEx, UPS) were not operating on time or at all during the extreme conditions. Over the next three days HR Strategies continued to make sure that all of their client payrolls were handled accurately and on-time from remote locations.

Results:

Dedication, team work, and planning enabled HR Strategies to go above and beyond to ensure that their clients and client employees were paid, and their needs met.  HR Strategies was able to pull together and use their resources and remote capabilities in order to deliver at a time when most services were unable to… Click Here to Read the Rest!

snowpocalypse2011

Today is Common Courtesy Day

tips in a jarDo you earn tips as a part of your job? If so, you’re a fan of “Common Courtesy Day”. Here are some IRS tips on how taxes apply to tip income:

Important Reminders about Tip Income

If your pay from your job includes tips, the IRS has a few important reminders about tip income:

  • Tips are taxable. Individuals must pay federal income tax on any tips they receive. The value of non-cash tips, such as tickets, passes or other items of value are also subject to income tax.
  • Include all tips on your return. You must include all tips that you receive during the year on your income tax return. This includes tips you received directly from customers, tips added to credit cards and your share of tips received under a tip-splitting agreement with other employees.
  • Report tips to your employer. If you receive $20 or more in cash tips in any one month, you must report your tips for that month to your employer. Your employer is required to withhold federal income, Social Security and Medicare taxes on the reported tips.
  • Keep a daily log of tips. You can use IRS Publication 1244, Employee’s Daily Record of Tips and Report to Employer, to record your tips.

Source

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