From big picture progress to the nitty-gritty details, great business leaders know when and where to delegate tasks that don’t fit their purview or preferences. Most often than not, it’s the important details that get outsourced—think HR, payroll and time and attendance needs. However, it’s also important that your employees take ownership over details that pertain to them.
Here we will specifically talk about coaching your employees to monitor their paychecks regularly. A quick note on the difference between a paycheck and a paystub.
Paycheck: a live check that needs to be signed and deposited manually.
Paystub: a record of a paycheck that has been issued via direct deposit. These may also be referred to as “personal earnings statements.”
What’s on a paycheck?
While paychecks may have their differences based on company and local policies, you can expect to find the following:
- Personal details
- Total gross pay
- Total net pay
- Hours worked
- Total deductions (tax withholdings and benefits)
What should employees be looking for?
Now that your employees know what’s on their paychecks, they should know what to be looking for.
- Personal details: their name, address, and bank account number (if enrolled in direct deposit) should be 100% accurate.
- Social Security Number: an incorrect SSN could result in tax implications and affect tax withholdings, resulting in costly surprises at tax time.
- Salary/hourly rate: Whether employee is hourly or salaried, they should check that the hours worked for that pay period line up correctly. Also, their payrate should be consistent and account for any pay raises or salary increases adjusted over time.
- Retirement Contributions: make sure that the contribution amount is correct and that your employer match is also evident (if applicable). This is especially recommended to check whenever contributions are adjusted.
- Health Insurance Benefits: ensuring that premiums are being deducted and HSA contributions are accounted for. If this information is not present, it could mean that health insurance benefits are not active/enrolled.
- Vacation/PTO balances: keep track of any vacation, PTO or sick time taken and make sure that it matches the balance recorded on each paycheck.
What if an employee’s paycheck is inaccurate?
First, they should address the payroll department at your company and get any errors resolved right away. The more time that passes, the more difficult it will be to fix. Some employees may think that payroll will fix the mistake automatically, but this shouldn’t be assumed. What they don’t know is wrong, they can’t address with a solution.
Also, if there’s anything employees don’t understand about their paychecks, they should bring their questions to the payroll department immediately to clear up any confusion.
Should You Outsource Payroll?
By outsourcing your payroll, you’re leaving important details in the hands of experienced professionals. They will handle:
- Timely payroll services ensure that your employees always get paid
- State and federal information such as taxes, laws, and deadlines
- Avoid costly mistakes by trusting experts in the field
- Simple, easy to read paychecks encourage your employees to check them often
By providing employees with this informal how-to guide, you’re empowering them to be knowledgeable of their financial wellness, free them from any money related stress, and encourage them to take control. When employees are happy and productive, your company will be happy and productive.
At Payroll Management the details matter, and we know you feel the same way. Do you have questions? We’re only a conversation away.
Sources: paystubmkr.com, hrsolutions.net, the muse.com
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