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The Top 3 Common Payroll Mistakes Managers Make

You don’t want to miscalculate your workers’ wages and risk not paying them the correct amount. Payroll mistakes like this can cause major problems.

As the boss, your payroll responsibilities are crucial. You need to ensure everyone receives the correct amount of wages for all the hours they put in. After all, any position in the meat industry involves demanding work. If your workers do any overtime, you need to ensure you compensate them appropriately. Unfortunately, payroll mistakes are more common than you think, and managers make them often. Don’t let these issues arise for you.

Miscalculating Overtime Wages

Do you have a mixture of exempt and nonexempt workers in your business? If so, you need to ensure your nonexempt workers receive overtime pay for any additional hours they accumulate on the job. And above all, you must calculate overtime correctly.

The Fair Labor Standards Act requires you to pay your employees time and a half for any hours worked beyond 40 hours in a workweek. If you don’t calculate these amounts correctly, you risk having to pay back wages and interest to your employees.

Verify the laws for your state regarding overtime wages. After confirming the guidelines, carefully monitor your employees’ hours. Consider using time tracking payroll software to avoid errors and keep track of overtime.

Not Paying Your Employees on Time

Payroll frequency is typically either weekly, biweekly, semimonthly, or monthly. Depending on the state you reside in, you need to abide by local payroll frequency laws. Check on the guidelines in your region to ensure you pay your workers in the proper time frame.

After you confirm your payroll frequency requirement, stick with the timeline. Missing a payment to your employees is illegal, and you can risk facing legal action. Payroll mistakes like this can cause major problems for your business. Set up reminders and a distribution schedule to avoid any mishaps.

Some employees might sign up for a direct deposit, while others will want paper checks. Keep track of everyone’s preference. Depending on their preferred method, you may need to adjust your scheduling to ensure they receive their checks on time.

Misclassifying Your Workers

Misclassifying your employees can result in incorrect payments, leading to underpayment or overpayment. You don’t want to mix up exempt and nonexempt workers. Keep an organized classification list for all employees to avoid payment miscalculations.

You can also make the mistake of classifying an independent contractor as an employee. Independent contractors receive payments significantly differently compared to employees. Employee classification errors can result in needing to research historical payroll records and make retroactive payments or adjustments to employee pay.

Wage mix-ups can decrease office morale because your workers won’t have much incentive to work hard if they don’t receive proper, timely payment. Misclassification errors can also result in distrust within the company.

You want your business to run like a well-oiled machine. Avoid making any common payroll mistakes and keep that workplace camaraderie flowing.



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