For the longest time, why anyone would use rounding in payroll calculations was beyond me. Since rounding is meant to even out in the end, what could possibly be the point? I don’t like unanswered questions hanging around so I decided to do some digging. I still don’t think rounding is a brilliant idea but at least I understand why it’s used. Essentially, rounding in the morning is meant to benefit the occasional late employee while rounding in the evening can benefit the employer. I’ll explain how this works.
Tag: calculate payroll
Have you ever run payroll and found that your cost is much higher than expected? In some industries, like dental offices, for example, payroll costs should be pretty constant. Your same five employees come to work every day and work their set shift. They take off when they’re sick or on vacation and your time-off policy compensates them for it. They don’t need to stay late or come in early most of the time – the office is open on a pretty set schedule.
If you think about the role of a business owner, you’ll realize that payroll takes sort of a second seat. While it’s incredibly important, business owners are experts at running their business. They’re not trained in payroll and they haven’t poured over all of the federal and state laws. This leaves room for quite a bit of error in what is the largest business expense. I’d like to quickly bring some of the common errors to the attention of these busy people so they don’t wind up in trouble for it later.
You can’t do business without calculations and one could argue that you can’t do business without calculators – after all, where would you get the time to run your business if you had to calculate everything by hand. Lucky for the nation’s small businesses, the internet offers tools of all kinds to help with everything from the most basic to the most complicated calculations.
Business owners and employees alike are confused by complicated double time rules. Some companies offer double time for holidays. Some don’t. Some types of employees get double time. Some don’t. Some states offer double time, most states don’t. If you’re an employee, how do you know if you’re due double time and how do employers calculate it? Read on to learn about double time laws, who gets it, and how to calculate it.
You’d almost be surprised that an employer would recognize the value in tracking accurate time (it saves a lot of money on payroll costs) and then, at the end of every pay period, estimate the hours for the last few days.
But it’s actually a fairly common practice, though not a very good one.
Payroll is a big job and it takes a lot of training to get it right. If you do it yourself, you have to be very careful. You must be sure that the correct taxes are withheld from your employee’s paychecks, the wages and bonuses are correctly calculated, the correct taxes are paid, that wage and hour laws are followed, and that your employees get paid on time.
Outsourcing payroll is the the best option for most small businesses.
Monitoring estimated payroll throughout the pay period is important to many small business owners. Seeing that your employees are working the hours required to get the job done is essential for peace of mind. You can do this and more with Timesheets.com!
There are several other situations in which employers must closely monitor accumulated hours: