6 Questions to Answer in a Mid-Year Payroll Check-Up

Halftime in sports is a time to pause, regroup, and consider how the team can improve. Likewise, a middle of the year review of your payroll and HR processes can be equally beneficial.

As an employer, invest time this summer in an internal audit of your records and procedures which will allow you to correct any weaknesses before the end of the year.

Are your employees and contractors correctly classified?

Misclassification is an expensive mistake. State agencies are cracking down looking for infractions. Make sure you have proper documentation to back up your classifications.

Is all overtime reported and paid?

Review your timekeeping system and records for accuracy. This includes employee bonuses, commissions, and comp time. Look for new methods to improve timekeeping.

Is your employee handbook up to date?

The summer is the perfect time to review your employee handbook to ensure compliance with updated labor laws or company policies.

Are wages and deductions accurate?

Employees often update their withholding after tax season. In addition, take note of any minimum wage laws and make sure you are addressing them accordingly.

Are you happy with your workers’ comp plan?

If cash flow is a concern, consider a pay-as-you-go (PAYG) policy.

Are you following proper record retention protocol?

Under FLSA, you should maintain payroll records for at least three years and documents used to compute wages for at least two years. Form I9 retention is also important.

Answering these questions can help put your organization in a winning position for the second half of the year. If you need payroll, timekeeping, or workforce management assistance, contact us at Abacus Payroll.

Originally published on www.AlloySilverstein.com.

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