Archive for May, 2013

How Do I Determine What To Pay a New Employee?

May 23rd, 2013

How Much Do I Pay A  New EmployeeHiring? You may be stumped when it comes to selecting or offering the appropriate salary for the vacant position- especially if it’s a new position your company has never had before. You’ll obviously want to be in compliance with minimum wage laws, but as you advance further up the pay scale and away from entry level positions, salaries get a little bit more complex.

Salary is often representative of experience, skill set, industry and responsibility, and you want to attract the perfect candidate, don’t you?

How do you determine what to pay a new employee? Let’s review a few key factors:

  • Do your research. There are a few good resources available which will provide salary data within your industry: www.bls.gov, www.payscale.com and www.salary.com.
  • Education & experience: What degree, training, certificates does the employee have and how many years of experience does he or she have? Will you offer a higher salary for a candidate that brings more to the table?
  • Job uniqueness: How rare is this job? Are there a lot of candidates capable of filling the position, or does it really require a rare and exceptional candidate?
  • What benefits will you provide the employee with? Don’t underestimate the power of benefits, or the cost. Many employees will happily take a lower-paying position if it means full health insurance coverage for their family or special perks such as company gym membership, retirement account, commissions, expense reimbursements, transportation, and more. What can you provide? Analyze how much each benefit is really worth.

Once reviewing the abovementioned areas, it is recommended that you compile a salary range, versus a number set in stone. A range will allow you some flexibility for negotiations, and other factors such as a candidate’s unique experience or the need for relocation.

Still stumped? A PEO Can Help…

If you already work with a PEO, be sure to rely on them for attracting and retaining top employees. Comprehensive benefits packages and recruiting assistance brought forth by the PEO relationship will make sure your Company hires the right talent – at the right price too!

If you’re not yet working with a PEO, contact us to learn more.  There are countless benefits to the co-employment relationship in addition to salary and recruiting assistance. We can help!

What Do I Do If I’ve Accidentally Overpaid An Employee?

May 17th, 2013

Overpaying an EmployeePart-time sales rep Mike typically works 30 hours a week, but this past week his schedule was slightly different because of a family obligation that required him to take a few days off. He only worked 14 hours and you just accidentally paid him for 30. Uh-oh.

Now what? If you’re not “buddies” with Mike, confronting him about the situation can be awkward, to say the least! Will he recognize that he’s been overpaid and come to you? Should you wait to see what happens?

The answer is no; don’t wait. The first step in handling this situation is to confront your employee. You’ll likely want or need to recover the overpayment and there’s actually several state laws surrounding payment errors, which means you’ve got to go about this the right way.

Always make sure that your payroll records are intact. You can’t make a claim unless you have the documentation and evidence to back it up. If you don’t have significant documentation, the state may not actually allow you to “take back” money from your employee, and you could end up in a sticky lawsuit.

Now, how do we actually recover the funds? Laws vary from state to state. In some states you can deduct money from your employee’s future paycheck(s) until the balance is recovered, but not if that deduction results in your employee’s paycheck being less than minimum wage in the upcoming weeks. In other states, you can demand full repayment via personal check from your employee if the overpayment was within a certain percentage of the person’s regular payroll.

Small overpayments are a little bit easier to manage. If you need to recover a large sum, it may very well need to happen over a series of paychecks for the next month or so. What a headache!

A PEO Can Help

Employment law is complex, especially everything that falls within the Wage and Hour Division (WHD).  As an employer, you have to abide by federal and state laws – which can be difficult to do at times when you’ve run into a situation as such.  Some of us tend to panic, and forget the protocol – if we even knew it in the first place!

Alongside payroll processing services, PEOs offer a lot of support. They know state laws and federal laws inside and out and can even handle this “awkward” situation on your behalf, as your payroll processor/service provider.  PEOs reduce the number of hats you need to wear as a business owner, which by the way is a GOOD thing! Fewer miscalculations and clerical errors results in less stress, and allows you to focus on your company’s core competencies while the PEO focuses on theirs.

To learn more about PEOs and avoiding or managing payroll errors like this, contact PEO Advantage today.