It is the time of year to evaluate and review wages and compensations for all employees. Employers are reviewing performance and making decisions regarding the future in regards to bonuses and raises for the following year. It is very important to start the process by verifying that all information provided by the employee is correct. This information includes name, current address and social security number.
Business, organizations and employers need to go over policies and procedures and conduct audits to make sure paperwork is in compliance. They should evaluate their pay practices and correct any discrepancies. For example, terminated employees vs. active employees. Those employers who wrote manual checks need to make sure they count them as wages for the year.
One of the most important aspects to take into consideration is the federal Equality Pay Act (EPA), which requires that men and women in the same workplace are compensated with equal pay for equal work.
Some questions to consider are:
Are compensation decisions based on objective or subjective criteria?
Is there documentation to justify pay decisions?
If there is a difference in pay based on performance, is there documentation to support it?
Are there legal factors that justify a pay disparity between employees performing similar work?
King HR Services can assist with your company’s end of the year review along with managing payroll with a free consultation. If you have questions please feel free to call (941) 518-9679 or email at email@example.com.