Ever-changing rules, regulations, policies and procedures—how are you keeping track for your pool and spa business? Do you know if you are in compliance for this year? How about next year? Keeping track as well as keeping documentation to prove you are meeting compliance mandates is a daunting task. The good news, is it’s not impossible.
First off, let’s review which laws may be most significant for your business right now:
The Electronic Fund Transaction Act (EFTA) – Direct Deposit and Paycards
This is a mandate that employers must offer a choice about whether or not to enroll in direct deposit, employees must have the ability to choose their own financial institution where wages are deposited, and employers must clearly outline fees associated with paycards as well as offer an alternative payment method, such as cash or check. Further, 19 states have adopted statutes to address paycards. Be sure to check your state status on the issue.
The Fair Labor Standards Act (FLSA) - Payroll, Overtime, PTO, and Implementing Time Tracking*
This is the primary federal law regulating wage payment. It requires employers to pay nonexempt employees who make under $47,476 per year ($913 per week) will have to be paid overtime. The Department of Labor will increase this threshold every three years and employers must comply with this new regulation by December 1, 2016. This means you must have employees keep a record of time worked, including documentation of a 30-minute break after 5 hours of work. PTO will also need to be calculated on a per hour basis. Payroll will also need to be changed to bi-weekly if the company was previously doing twice per month. If the company fails to keep record of all hours and becomes subject to a payroll audit, they could face fines.
*On November 23rd a federal judge granted an injunction putting a hold on the new FLSA law. Although this has been put on hold it is important to prepare and follow this law closely.
This is a requirement that all businesses with 50 or more full-time employees (FTE) provide health insurance to at least 95% of those FTEs and dependents up to age 26, or pay a fee. If a business fails to follow this mandate, they could face fines of $2,000 per FTE (excluding the first 30 employees). You could face higher fees if the coverage does not meet the minimum value standards.
For more details and other facts if you are under 25 employees or even over 100, read more here:
Now, what can you do to ensure compliance and avoid any fees?
Electronic Time Tracking, Mobile Check In/Out
With today’s software and technology, it can ease your compliance tasks and give you the proof you need in case of an audit. First off is time tracking, pretty simple right? Gone are the days of punch cards, or if they aren’t, they should be. Cards can get destroyed or lost. You can adopt software like Evosus where each employee clicks in or out for the day or for breaks. All time is calculated for you and can be compiled into easy-to-understand reports with only a few simple clicks. Further Evosus Mobile Service helps those employees out in the field clock in as soon as they start their day from anywhere! This not only helps them, but can help the company save time and gas money from having the field rep drive to the office before starting their first customer service call or delivery.
DIY Payroll Services
Do-It-Yourself Payroll systems can also be a lifesaver, not to mention easier on your budget than full outsource payroll assistance. Evosus Payroll Service is available and affordable if you only have 2 employees or 200+ employees. Save time and money with these great features:
- Exclusive Journal Entry Integration with Evosus Production Database
- Secure simple user interface
- Unlimited pay types
- Department and location reporting
- Direct deposit
- Handles all deduction types
- Electronic tax payment and filing
- Employee Portal
- 401(k) employer match tracking
- Accrual tracking (vacation, sick or personal time)
- Garnishments and electronic filing with state jurisdictions
- Worker's compensation report
- Print paychecks and direct deposit remittances on site
- Certified Payroll
- Pay as you go Workers Comp Insurance
- Integrated 401K solution
Paycards help both your employees and your business. (See related article on our blog here) Paycards have all the same convenience as direct deposit, but how do you ensure compliance with those employees who don’t have a financial institution? Paycards allow you to distribute funds on a card that works much like any standard debit card without the hassle of checks or the uncertainty of tracking cash payroll transactions. Evosus Paycards is one option out there, and you do not need to be an existing Evosus client to take advantage of this service.