Payroll

Your compensation & benefits questions answered

10/20/2009

Here’s a roundup of timely questions posed by readers of HR Specialist’s Compensation & Benefits newsletter. You’ll find answers on such hot topics as health insurance opt-out bonuses, differing pay structures for similar work, unemployment benefits for furloughed workers and paying for travel time.

Bonuses advanced and then rescinded: Does that threaten MFLSA exempt status?

10/15/2009

Q. Our bonus plan states that employees eligible to receive bonus pay will receive bonus advances with each paycheck based on year-to-date performance results. Last year, we were on track to meet the maximum bonus throughout most of the year, but the last few months of the year were slow and we didn’t meet our target goal. As a result, we deducted certain amounts from the last few paychecks of salaried employees. Do these deductions threaten the exempt status of the salaried employees?

Do you round off employee hours? Be sure to round both up and down

10/05/2009

Employers that round off the time on employees’ time sheets must do so in a way that doesn’t cheat hourly employees out of pay in the long run. That means that if you round down, you must also round up. Otherwise, your time records won’t reflect all hours worked, leading to potential violations of overtime and other wage-and-hour laws.

What’s the required timing for final paychecks?

10/02/2009

Q. What are the deadlines for paying employees who are terminated or resign from employment?

Is it OK to withhold money from employees’ final paychecks to ensure we’re reimbursed?

10/02/2009

Q. Can I make deductions from an employee’s final paycheck for outstanding expenses or company property that the employee still has in his or her possession?

Is a health insurance opt-out bonus taxable?

09/18/2009

Q. We give employees who opt out of our health plan a bonus. Do we withhold federal taxes on that bonus?

How to avoid the salary negotiation trap

09/15/2009

It sometimes takes extra money to entice an applicant to jump ship. That’s all part of the hiring dance. But there’s a hidden peril that could land you in court—and cost you thousands. Learn the best practices that will help you defend yourself.

Tread carefully when factoring employee travel expenses into pay calculations

09/10/2009

Here’s a wage-and-hour problem that may trip up Minnesota employers: Employees who have to pay their own travel expenses may end up making less than minimum wage. Allowing this to happen when the expenses exceed $50 may also violate Minnesota’s prohibition on deducting more than that amount for employee expenses.

Reduced hours for exempt employees: Should they continue to fill out time sheets?

09/10/2009

Q. As a cost-saving measure, our company reduced the salaries of exempt employees by 10%. Employees get their salaries regardless of the number of hours they work. We have always asked our employees, though, to fill out a time sheet on which they write down 40 hours every week. Now we will ask them to record just 36 hours on this time sheet. Any problems with this?

Can we recover the cost of a former employee’s laptop by withholding from his final paycheck?

09/08/2009

Q. An employee who recently quit has not returned a company-owned laptop computer worth more than $1,000. Can we withhold the value of the computer from the employee’s last paycheck?