Process: Payroll – Pay Me Now or Pay Me Later

Compiled Time sheet with a pen - business concept

Review PR entries during the month to make sure benefits are deducted correctly and coded correctly. Post the payroll entry when payroll is done. Do the review right after the payroll pay date. Are new hires correctly coded to the correct department? How about their benefits?  Is the prior month’s payroll accrual reversed? Does overtime look ok?  Is it too high or two low based on what is happening?  You do know what is happening right?  You are watching regular hours, overtime hours, PTO, sick?  Why not?  Actually your department managers should be doing that daily!  Review the hours from yesterday TODAY!!!  Let me make that clear in case that didn’t come thru.  Review yesterday’s hours from the time clock TODAY, RIGHT NOW.  Why wait?  The department supervisor is NOT going to remember what happened yesterday when you get to tomorrow.  Correct the errors NOW.  Is there a time clock exception report?  If there is, great, get it filled out now.  If not, get one in place and have employees and supervisors use it.  Make sure that they fill it out and sign it. Then when their paycheck comes and they think something is wrong, you have signed documentation.  It is AMAZING how good someone’s memory is when they see a document that they signed a few days ago.  You will hear “oh yeah, I remember that now.”  It is simply amazing what good documentation does for memory.  Back to the daily review of hours with the supervisor, they should know why the time was as it was, so to speak. If there were less or more than 8 hours per person, assuming a standard schedule, they need to know why.  If not, you have a leadership training opportunity right before you.  If they don’t know why, teach them, show them how to use the tools.  Be patient and your will be rewarded immensely in the long term.  Push your Controller or CFO knowledge, thinking, and reasoning out of your head and into their head.  It is wasted if you keep it to yourself.  Think leverage of your knowledge.  Imagine how much better will your company perform if all employees had a fraction of your knowledge! But don’t let this go to your head.

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