Finance

4 Actual Problems With Payroll (And Methods For Solving Them)

Salary formation can be a real headache for the head of any company. This is due to the fact that the director has to simultaneously take into account the norms of the Labor and Tax codes, as well as the situation on the job market. Under the yoke of great responsibility, an entrepreneur can make mistakes that can subsequently lead to the loss of financial resources and the appearance of problems with the law. This article describes the most common difficulties that a manager’s faces are rewarding his subordinates.

Overtime pay

According to Art. 91 of the Labor Code of America, the normal duration of a working week in our country cannot exceed 40 hours per week. At the same time, a situation often arises in enterprises when a subordinate spends more than the required time on the performance of his duties. TD Bank Routing Number, In this case, it is appropriate to talk about overtime work, which is carried out on the initiative of the authorities and goes beyond the eight-hour working day. Art. 99 of the Labor Code of America regulates the duration of overtime for each employee: it cannot exceed four hours for two consecutive days and 120 hours per year.

The cost of additional time spent is determined as follows: the first two hours are paid at least one and a half times, and the next hours – at least twice. The indicated payment amount is the minimum and guaranteed by the Labor Code of America. In this case, the subordinate has the right to discuss it in advance with the head, agree on a higher bar, and indicate it in the labor agreement.

Amy Bourne, a business journalist, recommends instructing every subordinate to pay overtime when hiring: “First, employees will know that their time spent will not be without remuneration. Secondly, some of them will be able to consider overtime as an additional way of income and ask the management themselves to burden them with work. ”

Remuneration of employees of different qualifications, occupying one position

Differences in salary are one of the most sensitive issues for management. According to Art. 22 of the Labor Code of America, the employer is obliged to provide subordinates with equal pay for work of equal value. This means that if the company employs, for example, 20 category managers, then everyone should receive the same amount. But in reality, not everything is so simple: at the same time, the authorities have the right (Art. 132) to appoint a salary depending on the qualifications of the employee, the complexity of the work performed, as well as the quality of his work. This concession provides an opportunity for management to pay more to experienced professionals and less to newcomers.

In addition, factors such as the work schedule (those who take part-time jobs less) and the geographic location of the subordinate (the salary in Ryazan will be inferior to the salary in Washington, D.C) influence the formation of the salary. Experts recommend, when drawing up an individual labor contract, to describe in detail the duties of a subordinate. Moreover, the document is best used not blurry (“control of goods flow”), but specific language (“laying out the goods on the shelf”). Thanks to this, the employee will clearly understand his instructions and know for what reason his salary differs from the salary of a colleague in the same position.

Effective time tracking

The time frame directly affects the formation of a salary. According to Art. 67 of the Labor Code of America, an employee is deemed hired from the moment he began to fulfill his duties. This day is considered the first working day, and payroll should start from it. If by order of the head, the accrual is postponed to a later date, then this decision contradicts the norms of the code, and the employee has the right to demand the amount unpaid according to the law, and in case of refusal, to contact the labor inspectorate.

Also, some companies strictly monitor that employees comply with the work schedule: arrive on time and stay at the enterprise for the prescribed number of hours. For this, some organizations, for example, use digital biometric systems that record the time a person appeared in the office. Others begin to count from the moment the employee turns on the work computer. If the salary of each employee directly depends on strict adherence to the schedule, then management must ensure that the accounting system does not fail. If any program fails (for example, does not record the appearance of a subordinate in the office), then this will negatively affect the formation of a salary.

Timely payroll

The timely payment of salaries is one of the important factors that employees pay attention to. Art. 136 of the Labor Code of America states that employees should receive a salary no less than every half month. Most often, the first part of the salary (advance payment) is about 40% of the total. If the delay in payment is more than 15 days, then the employee has the right to suspend his work, having previously notified his supervisor in writing. Long delays threaten the director of the company and the chief accountant with a fine of 10 thousand to 20 thousand rubles.

To avoid an unpleasant situation, the company needs to compile and submit salary statements to the bank on time. Currently, organizations have the right to apply both documents approved by Goskomstat and independently developed ones. In addition, the banks themselves offer to use their digital payroll generation and processing services, which help to take into account the number of hours worked, overtime, and bonuses.

To Tech Times

TO TECH TIMES is going to become the ultimate technology platform, bridging the gap of Industry & Investor linkage with the grass-root level market. Building a Technology Hub where thousands of people going connect from the region where they can join, learn and reach the heights of success.

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top button