Time is Ticking to complete Required Sexual Harassment Training in 5 Major States…Is your Organization prepared to meet the Deadline?!

Who Needs to Comply with Sexual Harassment Training…  You Do!

As more and more regulations, laws, and lawsuits continue to multiply by the dozen, the workplace has met yet another hurdle, how do we properly ensure that our staff understands what is, and what is not considered Sexual Harassment? If we can not effectively prove that our staff understands the difference then we are taking on a huge risk!

Let’s first explain why legally you will need to provide your staff with Preventative Sexual Harassment Training:

Workplace harassment, which includes sexual harassment, is prohibited by Title VII of the Civil Rights Act of 1964. Laws regarding workplace harassment, are enforced by the US Equal Employment Opportunity Commission (EEOC)

Sexual Harassment is the most common type of workplace harassment. It is so common, that recent statistics show that more then half of all workers (54%) have experienced some form of sexual harassment in the workplace. This is an astronomical number of our co-workers, friends and family who may be affected every day!

In addition to the laws enforced by the EEOC, five states (California, Connecticut, Delaware, Maine, and New York) have their own state laws specifically addressing sexual harassment, many requiring training to be provided to their staff!

California – AB 1825, AB 2053, SB 396, SB 1300, SB 1343

Connecticut – Connecticut Human Rights and Opportunity Act

Delaware – HB 360

Maine – Maine Employment Laws Revised Statute, Title 26, Section 807

New York – New York Human Rights Law § 296.1, New York City Stop Sexual Harassment Act

New York Deadline is OCTOBER 9th 2019 to have ALL employees & Independent contractors trained!

As more and more regulations, laws, and lawsuits continue to affect our workplace, Payroll Dynamics will pose these questions to you:

  1. What resources does your organization have available to ensure your staff is properly trained before this years deadline? (WE ARE LESS THEN 6 MONTHS AWAY!)
  2. Who will answer the tough questions the employee’s have about Sexual Harassment as this is a mandatory function of the training you must provide?
  3. Lastly, how will you maintain this moving forward considering all new hires need to be trained within 90 days of employment? Are you really going to hold a class for every new hire?

This new law has created a lot of work! But only if you let it be…

We have put a phenomenal solution in place that leaves you with virtually ZERO time spent on this…Keep reading to find out how easy it is to have your entire staff trained on their own time!

Remember, the Most Important Part of this Training is to PROVE that your staff understands the difference of what is considered Sexual Harassment, and what is not…This way as the employer, you know that your staff understands what is acceptable, and what is not…This protects you and your business!

But how can you prove it is understood? Thanks to our solution, this is EASY! The employees will go through an online course and be required to pass a short test following their 1 hour course. If they pass the test (which they should have no problem doing), they obviously understood the material, and their certificate will prove this!

Best of all, they can do this on their own time at their own self pace! The employees have an opportunity to pause the course slide by slide to ensure it can be done on their own schedule. Ideally, it will be done in four, 15 minute segments to keep them engaged and learning, which will make passing the test a breeze!

Here are the specs of the exam:

For Employees:

Sexual Harassment in the Workplace

Format: Online, Self Paced

Duration: 1 Hour

This online training course is meant to provide a comprehensive overview of the common issues surrounding sexual harassment in the workplace.

This is an employee version of the sexual harassment training. This course contains the following lessons:

  • Introduction to Sexual Harassment
  • Recognizing Sexual Harassment
  • Responding to Sexual Harassment
  • Sexual Harassment and the Law
  • Final Exam

Available in English and Spanish

For Managers & Supervisors:

Sexual Harassment for Managers and Supervisors

Format: Online, Self Paced

Duration: 2 Hours

This online training course is meant to provide a comprehensive overview of the common issues surrounding sexual harassment in the workplace from a manager/supervisor standpoint.

This course contains the following lessons:

  • Introduction to Sexual Harassment
  • Recognizing Sexual Harassment
  • Responding to Sexual Harassment
  • Sexual Harassment and the Law
  • Your Responsibilities as a Manager/Supervisor
  • Case Studies for Managers and Supervisors
  • Final Exam

Pricing is entirely dependent on how many employees you have, or how many seats you want to pre-buy for your growing staff…For less than $30/seat, your staff will become fully compliant…seats do not expire and anytime they are used, it will always be the most up-to-date course offering to ensure you have the newest material..To top it off,  the more seats you buy, the more savings we can pass along to you!

Give us a call today to discuss how to get your company enrolled in as little as 5 minutes

Your employees will be compliant, before you know it!

Sincerely,

The Payroll Dynamics Team

631-435-8700

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Reasons to Integrate Time and Labor With Payroll

Time and labor (also called time and attendance) involves tracking employees’ start and end times, early departures, late arrivals, breaks taken and absenteeism. Payroll involves, among other things, making sure employees are paid correctly based on their time-labor records.

The two functions are enmeshed, but at one point in time, employers had to rely on standalone systems for each one. Fortunately, as the years advanced, software developers across the globe figured out a way to unite these systems.

By integrating time-labor with payroll, employers can now increase efficiency, save time and money, and make things less stressful for their employees and payroll staff. Let’s take a closer look at these benefits.

Reduces paperwork

An integrated system captures and stores employees’ time-labor data electronically, thereby eliminating the need for paper timesheets and physical storage space.

Reduces timecard fraud

According to the American Payroll Association, over 75 percent of U.S. employers lose money because of buddy punching — which refers to the fraudulent practice of co-workers punching in and out for each other. This is a serious issue, which can be eradicated by integrating a biometric time-labor system with your payroll software. (A biometric system would require the real employee to clock in and out.)

Minimizes timekeeping and payroll errors

With an integrated system, the chances of mistakes drop significantly since the payroll staff does not have to manually calculate timesheets or enter timekeeping data into the payroll system by hand.

The integrated system improves accuracy by digitally collecting time-labor data in real time and automatically transferring the information to the payroll system, which then does the calculations based on the inputted data and any subsequent edits made. The system not only calculates employees’ time but also ensures that the time is appropriately rounded up and down.

Lowers headcount and frees up time

An integrated solution can reduce the number of staff needed for certain activities, such as timekeeping and payroll data entry. Also, supervisors can spend more time on mission-critical tasks and less time policing attendance.

Improves regulatory compliance

One of the biggest payoffs of merging time-labor with payroll is that the system helps keep you in compliance with federal and state wage and hour laws. Because accuracy is improved, there are fewer wage and hour complaints by employees and fewer penalties from the government.

Enhances reporting

An integrated solution offers more dynamic reporting options than a standalone system. Since the data is centralized, your payroll staff does not have to log in to different systems to generate reports. With just one login, they can create reports on work hours, break times, absences, regular wages, overtime and more.

These benefits are all the reasons you need to integrate your time and labor processes with your payroll system.

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Who Is Excluded From the FLSA’s Minimum Salary Requirements?

Executive, administrative and professional employees who meet the FLSA’s job duties and salary basis criteria are exempt from the act’s minimum wage and overtime pay provisions. Per the FLSA, these employees must be paid no less than $455 per week on a salary basis. However, the following positions can be exempt without having to fulfill this standard salary basis test:

Certain computer professionals can be paid either the minimum salary requirement of $455 per week or on an hourly basis of at least $27.63 per hour.

Business owners who are employed in a bona fide executive capacity, own a minimum of 20 percent equity interest in the company where they are employed and are actively engaged in the management of the business are exempt from the FLSA’s salary basis test.

Teachers are exempt from the salary basis test if their primary duty involves teaching, tutoring, instructing or lecturing in an educational establishment. This includes:

  • Regular academic teachers.
  • Kindergarten and nursery school teachers.
  • Automobile driving instructors.
  • Teachers of gifted or disabled children.
  • Certain music instructors.
  • Home economics teachers.
  • Teachers of people in skilled and semi-skilled occupations.

Outside sales employees are exempt from the salary basis test if their primary duty revolves around either of the following:

  • Making sales.
  • Obtaining service orders or contracts.

These primary duties must be customarily and frequently performed away from the employer’s place of business.

Employees who are licensed to practice — and are actually practicing — law or medicine, or any branches of these professions, are excluded from the salary basis requirement. This includes employees who hold academic degrees for the general practice of medicine and are working in a related internship or resident program.

Employees in the motion picture producing industry do not have to be compensated on a salary basis if their base rate of pay meets a specific amount, as defined by the FLSA. As of Dec. 1, 2016, the minimum base rate of pay is $1,397 per week, excluding board, lodging and other facilities. Starting on Jan. 1, 2020, and every three years after that, the base rate of pay will be adjusted.

Administrative employees in educational establishments can either be paid a salary or fee of at least $455 per week or a salary that at least equals the starting pay for other teachers in the same educational institution.

Employees working in American Samoa for a nonfederal employer are subject to a lower salary level requirement — which is 84 percent of the standard minimum salary.

All of the above-stated employees do not have to meet the standard salary basis test, which requires a weekly salary of at least $455. But they are exempt provided they satisfy all other FLSA requirements for their position.

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Inclement Weather and Your Payroll Obligations

Hurricanes, storms, tornadoes, blizzards, floods and other weather-related disasters can cause inclement weather closures. But even if one of these calamities causes your business to close, your employees must still be paid on their next regularly scheduled payday if they did any work during the pay period.

To ensure accurate payment, you’ll need to take federal and applicable state laws into consideration.

Nonexempt Employees and Inclement Weather

The Fair Labor Standards Act (FLSA) says that employers must pay nonexempt employees for all hours worked. Therefore, you do not need to pay these employees for business closures, including those caused by inclement weather. However, if a nonexempt employee shows up and works for two hours before your business closes due to inclement weather, he or she must be paid for two hours for that day.

Under the FLSA, you can require that nonexempt employees use their available paid time off to cover time missed due to inclement weather. However, some states do not allow employers to mandate that employees use their accrued PTO as a substitute in these instances, so be sure to check your state’s stance on this issue.

Also, some states have “reporting time” pay laws, which require that employers pay nonexempt employees for a minimum number of hours if they arrive at work as scheduled but are sent home early.

Exempt Employees and Inclement Weather

According to the FLSA, employers must pay exempt employees their full salary for any workweek in which they perform any work. The FLSA permits certain deductions to be made from exempt employees’ salaries, but business closures aren’t one of them. Therefore, if your business closes for less than one week due to inclement weather, exempt employees must receive their full salary for that week if they did any work at all during that week.

You do not have to pay exempt employees if the business closes for the entire week and they performed no work during that week.

As is the case with nonexempt employees, the FLSA allows you to require that exempt employees use their accrued PTO for inclement weather closings. But, as stated, you’ll need to check state law, since not all states allow this substitution.

With regard to exempt employees who have exhausted their PTO, you must still pay them their full salary for the workweek if they do any work during that time. But you don’t have to pay them anything if they perform no work for the week and have no available PTO to cover the missed days.

Paychecks don’t have to be delayed because of inclement weather

You can’t control the weather, but you can take measures to ensure your employees are paid on time when disaster strikes. A large majority of U.S. workers are paid by direct deposit, so making sure paychecks are handed out is moot. Offer this service if you aren’t doing so already, and encourage employees to take advantage of it.

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Do You Know Your Turnover Rate?

Employee turnover is the percentage or number of employees who leave a company and are subsequently replaced. Industry experts put the cost of replacing an employee at somewhere between 50 percent and 60 percent of the departing employee’s salary. This can take a toll on your profit margin, which is why calculating and controlling turnover must be a priority.

Calculating turnover

According to the Society for Human Resource Management, you can calculate the turnover rate by taking the number of separations during a month divided by the average number of employees multiplied by 100.

Here it is as a formula:

Number of Separations / Average Number of Employees x 100 = Turnover Rate

Before you attempt to calculate your turnover rate, make sure you know your employee headcount, which is the total number of employees on your payroll, including full-time, part-time and temporary employees plus employees who are on leave or are temporarily laid off.

Also, you’ll need to run headcount reports periodically throughout the month, such as weekly or at the start, middle and end of the month. This is important because the reports will probably differ if you’ve had terminations at varying times throughout the month — and this will affect your average number of employees and your turnover rate.

To arrive at your average number of employees, add up the headcounts from each of the reports you ran throughout the month and then divide that sum by the number of headcount reports used for the month.

Then, determine how many employees have left the company throughout the month. Divide that number by the average number of employees and then multiply the result by 100. Voila! You have your turnover rate.

But how does it compare to others in your industry?

Reviewing BLS turnover data

The Job Openings and Labor Turnover Survey (JOLTS), conducted by the Bureau of Labor Statistics, provides information on job openings, hires and separations based on industry and geographic region. You can obtain the total number of separations and turnover rate for your industry via the JOLTS report, and then see how your company’s turnover rate measures up. The report also breaks down separations according to quits, layoffs and discharges by industry and region; therefore, you can benchmark using those variables.

If your turnover rate is lower than the average in your industry, your employees are probably content. But if your turnover rate is higher than the average in your industry, you may want to revisit your retention strategy. In our current high-employment environment especially, it’s important to keep the turnover rate low so you aren’t scrambling through a limited pool of potential employees.

 

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Can You Make Direct Deposit Mandatory?

In 2016, the National Automated Clearing House Association (NACHA) reported that 82 percent of U.S. employees are paid by direct deposit, jumping from 74 percent in 2011. Clearly, direct deposit is on the rise.

But you may be surprised to learn that, according to the NACHA survey, 64 percent of direct deposit users “utilize the service because their employer encourages or requires it.” Further, 37 percent of those who don’t use the service say it’s because their employers do not offer it. The first statistic tells us that some employers actually require direct deposit. But can you? Read on to find out.

Federal Law on Direct Deposit

The Electronic Fund Transfer Act (EFTA), also known as federal Regulation E, permits employers to make direct deposit mandatory, as long as the employee is able to choose the bank that his or her wages will be deposited into.

Alternatively, employers can choose the bank that employees must use for direct deposit. But in that case, the employer must also provide employees another means of payment, such as cash or paper check. The employee can then decide whether to go with direct deposit at the bank of the employer’s choosing or with the other means of payment.

State Law on Direct Deposit

In some states, an employer can make direct deposit mandatory, provided certain stipulations are met. For instance, employers in Kansas, Indiana, Texas, Missouri and South Carolina can require employees to accept direct deposit, but the employer must provide another payment method — such as payroll card, cash or check — to employees who do not have a bank account.

In many states — including California, New York, New Jersey, Florida, Vermont and Illinois — employers must obtain written permission from employees in order to pay them by direct deposit. A good rule of thumb is to require written authorization from the employee, even if state law doesn’t say to.

In some states that allow employers to require direct deposit, the rules are very specific. For example, in Utah, an employee cannot refuse payment of wages via direct deposit if:

  • In the prior year, the employer’s annual federal payroll tax deposits amounted to at least $250,000, and;
  • At least two-thirds of the employer’s workers are being paid by direct deposit.

At the very least, the state may adopt the provisions of Regulation E. If the state extends additional protections to employees, the employer must use the law offering the employee the most benefits. And if the state does not have laws on direct deposit, federal law applies.

You can determine your state’s stance on direct deposit by examining its wage payment statutes, which may also require that you give employees a pay stub each time they are paid — whether by direct deposit, check, cash or payroll card. Of course, this is just a summary of complex state rules, which may contain additional provisions and exceptions, and also which can change frequently. Be sure to get professional advice on the current rules in your jurisdiction before implementing a policy at your business.

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Fully Insured Versus Self-Funded Health Plans

There’s more than one way to fund health insurance. Below are two of the key options.

Fully insured

A fully insured health plan is purchased through an insurance carrier. Typically, the process is as follows:

  • The employer negotiates the best rates possible with the insurance carrier.
  • The employer agrees to pay a monthly premium to the insurer; the monthly premium is based on how many employees are in the plan.
  • The employee pays for their insurance premiums via payroll deductions and is responsible for any copayments or deductible amounts, as outlined in the policy.
  • The insurer assumes all legal and financial risks and pays all medical claims.

Since all claims are managed by the insurance carrier, the employer has more time to focus on its business. Also, costs are fairly predictable. Unless the number of employees enrolled in the plan changes, the employer’s premium rate remains fixed throughout the contract year.

However, premium rates can change drastically at the start of the next contract year if the insurance company finds that it will be at a financial disadvantage.

For example, an employee’s out-of-pocket maximum is $7,000, but they accumulate $50,000 in medical bills for the year. The insurer cannot increase your premium during the contract term because it agreed to pay all claims for that period. What it will do at the start of the next contract year is hike your premium based on incurred medical claims.

Also, insurers often increase employers’ premium rates at the start of the contract year if the cost of providing health care services is likely to rise. The employer can agree to pay the new amount or shop around for a better deal.

Self-funded

With a self-funded (or self-insured) plan, the employer pays for all employee medical claims and operates the plan on its own, instead of buying a fully insured plan from the insurer. As a result, the employer does not have to deal with premium increases that are intended to boost the insurer’s profit margin, as is the case with fully insured plans.

Still, self-insured employers must pay fixed costs, such as administrative fees and any stop-loss insurance premiums or per-employee charges. They must also pay variable costs, such as employee medical claims, which fluctuate from month to month, according to the scope of health care services used by employees and their dependents.

The biggest drawback of a self-funded plan is that the employer assumes all risks. For instance, unexpected claims could morph into catastrophic losses, which the employer would be liable for. Some employers protect themselves against such outcomes by purchasing stop-loss insurance, which comes into play for unexpected catastrophic claims.

Due to the financial risks involved, smaller companies are usually hesitant to self-insure. However, for a business that doesn’t have many claims, a self-funded plan may be beneficial since it removes some of the costs associated with fully insured plans — thereby making it easier to offer employees lower premiums.

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