It doesn’t matter when your payroll is distributed to your company, bi-weekly or just twice a month. However, when problems arise and employees aren’t paid on time, that can cause quite an ordeal. To make sure that your employees are paid when they are supposed to be and don’t wind up dissatisfied with your establishment and how you run your business, you need to make sure you’re taking precautions to avoid these common payroll issues that can arise for a number of different reasons.
Delays due to Holidays, Terminations, Etc.
One big problem that can get in the way of a typical payday are holidays in which banks are closed and won’t process the pay. This can cause quite a stir amongst employees who are expecting to be paid on a specific day. However, if the day lands on a holiday, they clearly won’t get their money when expected. To ensure your employees aren’t caught off guard, make sure you have pay dates clearly stated and show that holidays will interfere, making the pay day before or after the expected date. Communication is always key, and by letting employees know what to expect throughout the year, they can remain happy.
On the other hand, if an employee quits then they will have to wait for the next payday to be paid in full; they can’t get their checks immediately when quitting if you have designated paydays in place. Someone who is terminated will receive their money earlier, though, usually within six days after being removed from the company.
Human Resource System Malfunctions
A lot of people are using human resource systems that work on computers. However, we all know that technology can breakdown from time to time. If you don’t think your system can handle the workload or you notice a lot of flaws in the system, it might be best to have a backup plan in place.
Time Record Malfunctions
In this day and age, time records are most commonly done through computers or other form of technology. And just like HR systems, they can be faulty. Employees may also end up forgetting to clock in and out of their shift once in a while, ending in a false time reading. To ensure that employees are being paid exactly what they deserve, it’s important to go over payroll thoroughly and quite often to find mistakes.
Leave of Absence
Leave of absence can be given to those with a medical problem or family issue, and when it comes to leave of absence, payroll can become quite tricky. Staying in line with laws and ensuring the pay is correct can be quite an undertaking if you’re not familiar with it, and that is why it’s important to have someone onboard who has experience working with leave of absence pay so they get it right.
If you give your employee an increase in their wage, it can sometimes take a while to make sure the new pay is reflected on their paycheck. To avoid this downfall, make sure that the wage is retroactive.