Which Benefits Do Employees Value The Most?

The need to remain competitive spurred one-third of organizations to boost their benefit offerings throughout most of 2016, according to the 2017 Employee Benefits Survey by the Society for Human Resource Management. The impetus for this competitive streak can be attributed to the talent shortage many employers face today. Per ManpowerGroup’s 2016-2017 Talent Shortage Survey,[…]

How To Process Payroll For New Hires

Compensating a new employee is a multilayered operation, consisting of activities that must be completed before, during, and after payroll processing. Before Payroll Processing To begin the payroll process, check the following: Determine the new hire’s pay frequency, such as weekly, biweekly, semimonthly, or monthly. Make sure the payday frequency doesn’t run afoul of state[…]

Know the Major Laws Affecting Employee Benefit Plans

Multiple laws must be considered when implementing, evaluating, and updating employee benefit plans. It is essential to remember that not all laws affect every employer in the same way. Therefore, knowing which laws apply to your benefit plan is the first step toward compliance. Employee Retirement Income Security Act The Employee Retirement Income Security Act[…]

Learn the Difference Between Pretax and After-Tax

Deductions Taken Before Taxes Pretax deductions are subtracted from employees’ wages before taxes are taken out, thereby lowering their taxable wages and increasing their take-home pay. For a deduction to be eligible for pretax status, the employer must have an Internal Revenue Service-compliant plan document on file. For example, you need a Section 125 plan document to[…]

New Disability Claims Rule for Welfare Benefit Plans

On December 19, 2016, the U.S. Department of Labor announced a new rule updating the process for reviewing claims and appeals for disability benefits covered by ERISA. Initially, the final rule was supposed to apply to all claims filed on or after January 1, 2018. But the rule was delayed for 90 days, pushing the[…]

Know the Rules on Classifying Employees

The Fair Labor Standards Act (FLSA) sets guidelines for whether an employee is exempt or nonexempt under federal law. Exempt means that the employee is excluded from the Act’s overtime pay provisions and therefore does not have to be paid overtime for work hours exceeding 40 hours in a week. Nonexempt means that the employee[…]

Establishing Accurate Timekeeping Practices

The Fair Labor Standards Act (FLSA) requires that employers track hours worked by nonexempt employees, who typically are paid by the hour. Although you can choose your own timekeeping system, it’s essential that the records you keep are accurate and complete. System Options The evolution of technology has yielded an increased selection of timekeeping systems,[…]

Grasping the Complexity of Payroll Tax Withholding

The rules for withholding federal payroll taxes are quite straightforward, applying to most employees in the United States, regardless of location. The rules tend to be more complicated on the state side, however, as they are location specific and may even include local tax withholding. Here’s a rundown of the various federal, state, and local[…]

Traditional Leave Plans versus Paid Time Off

Traditional leave plans separate time off into different categories, such as vacation, sick, and personal time. Employees are allotted a specific number of days or hours for each category. The time off, which is based on length of service, must be taken for the allotted purpose. According to a 2016 report by WorldatWork, under a[…]

Terminating Employees the Right Way

The process of terminating an employee should not be taken lightly, as improper handling can lead to unpleasant results, such as the employee suing the company. It’s therefore vital that you follow the law when firing or laying off an employee. “At-Will” Employment Employment is “at will” in most states—meaning, either the employer or the[…]