Chapter 3

Payroll and Benefits Management

Paying your people is an important part of your relationship — possibly the most important part. Second most important is their benefits. Get either wrong and it can undermine the entire employer-employee dynamic. Employees won’t give you their all if they’re worrying about their next paycheck or whether their child’s doctor visit is covered by the company benefits plan.
Did you know?
The total dollars awarded for workplace class-action settlements rose sharply in 2017. Most common employee complaints: workplace discrimination, employee benefits, and wage and hour claims.*
*Workplace Class Action Litigation Report by law firm Seyfarth Shaw

WHAT TO AVOID

  • Late, missing, or incorrect paychecks or direct deposits
  • Benefits enrollment or coverage delays
  • Requiring manual and duplicate updates when details change
  • Incorrect recording and filing of tax information or payments
  • No data back up in case of fire or technical malfunction

POTENTIAL COSTS OF GETTING IT WRONG

  • Lower employee morale, as wages and benefits become a source of anxiety
  • Back payment of missing pay ― plus legal expenses and other potential penalties and fees for employee wage claims
  • Employee time lost on manual processes that could be automated or online
  • Audits and fines from the Department of Labor for failing to meet requirements
  • Loss of irreplaceable data

WHAT GOOD LOOKS LIKE

  • On-time and accurate payroll
  • Smooth benefits enrollment and coverage that starts on time
  • An automated and secure payroll processing system that helps meet compliance requirements
  • Systems are linked, so an update like a name change or promotion is automatically processed to payroll, retirement, benefits systems, etc.
  • Compliance with federal and state laws (wage and hour, health benefits, and more) even as changes come
  • Secure data storage, with off-site backups