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Your 7-Point Plan for Choosing a Payroll Partner

If you dread payroll processing, you’re in good company. In fact, it’s becoming pretty common to outsource all or part of an organization's payroll tasks. According to a 2014 survey by Deloitte, 22% of North American organizations outsource all payroll functions.  And among those who use a vendor for some payroll functions, “the most commonly outsourced functions in North America  include year-end tax form printing (87%), payroll tax preparation and filing (76%), year-end tax form distribution (63%), check printing (57%) and garnishment administration (52%).”

So why do organizations choose to outsource? And what should you look for when doing so?

High Turnover Does Not Have To Mean High Cost

 

The restaurant industry is known for its high employee turnover rates. According to the National Restaurant Association,  "the turnover rate in the hospitality sector topped 70 percent for the second consecutive year" in 2016. 

Restaurants aren’t the only businesses experiencing high turnover. Industries like tourism, lodging, healthcare and entertainment struggle with high turnover every day. It's difficult to calculate the true cost of turnover, but estimates from the Center for American Progress show that each new employee earning less that $30,000 per year costs around $4000 to replace. Management positions can cost more than double that amount. Is there a solution?

Attention New Employers: Avoid These Top 3 Payroll Mistakes

 

Owning a business, especially after being someone's employee, can be very rewarding. You're the captain of the ship and can chart your course without having to answer to anyone else. When you get to the point where you need your own employees, however, it’s vital to realize that being an employer can be complicated - especially when it comes to payroll. To ensure the best chance of success, be certain you avoid these three common payroll pitfalls. 

Hire Interns Without Taxing Your HR Resources

 

Creating a strong internship program is advantageous for any organization, big or small, and internships benefit both the employer and intern. That's right - internship programs aren't just for large corporations. Regardless, many employers shy away from hiring interns due to the temporary nature of their employment and the onboarding/offboarding work involved. Let’s examine why internships are important and how to more easily navigate temporary employee statuses.

W-2 Phishing Scam Targets Small Businesses, Schools and Others

 

As if you need one more thing to worry about this time of year, the IRS has issued an urgent alert regarding phishing scams. These scams target sensitive employee information which crooks can then use to commit various identity crimes, including filing fraudulent tax returns. These types of scams have previously targeted larger corporations but are now going for other sectors including school districts, tribal organizations, nonprofits and small to medium-sized businesses. What can you do to stay one step ahead?

21 States Will Increase Minimum Wage in 2017

Although anticipated FLSA overtime rule changes have been put on hold, almost half of the United States will increase their state minimum wages in 2017. So, as an employer, what does that mean for you?

The Fair Labor Standards Act (FLSA) establishes the federal minimum wage, which is currently $7.25/hour ($2.13 for tipped employees). However, FLSA also stipulates that state or local laws supersede FLSA rules if the state or local laws are more favorable to the employee. In other words, employers must pay the state minimum wage if the state minimum wage is greater than $7.25/hour. And, as previously mentioned, almost half the country will increase state/local minimum wage in 2017. The table below highlights the minimum wages you can expect in 2017.

Onboarding with a New Vendor

In this series, we've examined hiring or onboarding an employee and the use of applicant tracking systems. But what if you're the one being onboarded - that is, being taken on as a new client? Say you're considering going with a new vendor, for one reason or another. Perhaps your company has grown and you need a new suite of services. Or - you may just be ready to splurge on the latest and greatest software. Whatever the reason, many of us dread the prospect of onboarding with a new vendor - so much so that we stay with bad vendors way too long.

The process of onboarding doesn't have to be that difficult. 

Choosing a Pay Period That's Best For Your Company

New business owner? Switching up the way you do payroll? Either way you'll need to decide when, that is, how often, to pay your employees. You may be surprised by how much you have to think about when making this decision. The four main pay periods most businesses use are:

  • Monthly pay - 12 pay periods per year
  • Semi-monthly pay - 24 pay periods per year
  • Bi-weekly pay - 26 pay periods per year
  • Weekly pay - 52 pay periods per year

Each has its own set of advantages and disadvantages. You must pick the one that's right for you and your business cash flow. For example, you might like bi-weekly, but if you're only generating cash at the end of each month, bi-weekly won't work. The right pay cycle must align with how the business generates cash.