Getting Over Payroll Humps in the Septic Industry

Payroll issues are especially important to keep at bay in the septic industry because of the on-time nature of the industry. If you are a small business owner in the septic industry, you will need to monitor the payroll process on a regular basis in order to ensure the satisfaction of your employees, and as such, your customers.

Federal Holidays
If you are working around federal holidays, then bank closures may sneak up unexpectedly and cause you to miss payroll. This is a huge problem if you have a payroll mishap during a holiday. You can help to avoid this issue if you print your schedule for your payroll dates and pay periods. This will let everyone know the day that payroll is given out even if there is a holiday coming up.
Check your state to see if it has specific laws about employee pay during periods like this. For instance, Texas Labor Code Chapter 61 actually mandates that employers make the paydays public. If no payday is publicly noted within the company, then the state normalizes two paydays on the 1st and 15th. Finally, if a federal holiday stops an employee from being paid on the mandated payday, the employer must pay those wages on a different business day that the employee requests.

HRI Systems
A human resources information (HRI) system is the buzzword for the technology that will help you keep up with your payroll humps, but even an HRI has its failures from time to time. If you are outsourcing into the cloud, you may have to deal with server failures that could delay and maybe cancel your payroll. One way to circumvent these problems is to make sure that the uptime guarantee of the host is up to market standards. You should also ask about redundant servers – an infrastructure that will redirect you to a backup host with the same information that has been automatically copied from the primary source. This will ensure that your payroll does not miss a beat even if there is a technical problem with your primary server.
In most cases, a septic company will need to outsource payroll to a dedicated company instead of taking it on in house, especially if the company is scaling to the level of large municipal clients. Most septic companies simply do not have the room for a full IT staff as well as front line employees, and no one has the time to wear two hats as a security and infrastructure specialist along with the duties of day-to-day operation. The ongoing cost of maintaining this kind of department is huge as well. These funds can and should be used to improve service to clients. Save yourself some time and look for a specialist company that can get the job done rather than trying to take your payroll in house.

Problems in Time Records
In most cases, the hours of your employees will be recorded through an automated reader. Although this reduces the chance of human error, there are other types of errors that actually have a chance to increase if you are not careful. Computers can completely misread a time card. If there is a problem with a computer, it will usually be more widespread, because the computer will make the same mistake over and over again. If you discern a trend in the way that your payroll is being implemented, then you can look to your IT infrastructure rather than to an individual human error.
Although you want to upgrade to an automated time record system as soon as possible, there are still human errors that you need to look out for. There should be a very precise procedure that allows for employees to clock out so that they never forget. It can take quite some time to find an individual record that is based on a single employee error in an automated system. Making the investment to verify your time records and scanning them for errors through an in-house clerk is usually a good investment. If you do not have a dedicated payroll clerk, then you can assign this to a general admin. Keep in mind there are certain tasks that an outsourced payroll specialist will be able to perform much more quickly.

Employee Leaves of Absence
Leaves of absence may become an issue within the septic industry because of the nature of the work. Make yourself familiar with the Family Medical Leave Act. Employees that use this in an intermittent fashion may cause delays in payroll because of the administrative hassle, so make sure that you always keep an open line of communication with your benefits specialist if you are conducting payroll in house. Noting the exceptions that come from federal mandates are very important for your current payroll and your taxes that year.

Increasing Pay
You may also experience hiccups when you get ready to increase the pay of your employees in the septic industry as well! Make sure that any system that you implement has the ability to apply pay increases in a retroactive manner. You may not be able to change the payroll quickly enough to apply a pay hike in the same period that you want to give it. Stay in touch with your employees during this time, and make sure that they understand they will get the money you have promised to them; it may just take a few weeks for the changes to fully solidify.
The septic industry is an unpredictable one, so you may face challenges that are different from those above. However, keeping tabs on these problems should ensure that most of your payroll problems are at a minimum.

No comments yet... Be the first to leave a reply!