Page 116 - Essentials of Payroll: Management and Accounting

Payr oll Best Practices
of the former pay system and that any change will mean they won’t
have enough cash to continue those habits. For example, employees
who currently receive a paycheck every week may have a great deal of
difficulty in adjusting their spending when they receive a paycheck only

once a month. If a company were to switch from a short to a longer
pay cycle, it is extremely likely that the payroll staff would be deluged
with requests for pay advances well before the next paycheck was due
for release, requiring a large amount of payroll staff time to handle. To
overcome this problem, increase pay cycles incrementally, perhaps to
twice a month or once every two weeks, and tell employees that pay
advances will be granted for a limited transition period. By making

these incremental changes, it is possible to reduce the associated level of
employee discontent caused by implementing this best practice.
Review the prospective change with the rest of the management
team to make sure that it is acceptable to them.They must buy into the
need for the change, because their employees will also be impacted, and
the managers will receive complaints about it.This best practice requires
a long lead time to implement as well as multiple notifications to the
staff about its timing and impact on them. It is also useful to go over
the granting of payroll advances with the payroll staff, so that they are

prepared for the likely surge in requests for advances.

Cost:
Installation time:

Link Payroll Changes to Employee Events

There are many payroll changes that must be made to an employee’s file
when certain events occur. Many of these changes are never made,
however, either because the payroll staff is so busy with the standard,
daily processing of information that it has no time to address them or

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