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Don’t let payroll burn you! Plan ahead to account for summer vacations

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in Office Management,Payroll Management

As employees’ thoughts turn toward summer vacation, put two items on your agenda: ensuring that the summer vacation schedule runs smoothly and that employees aren’t overpaid during weeks they take a day or two off.

Stretching weekends without stretching paychecks. July 4 falls on the worst of all possible days this year—Wednesday. A predictable tug of war will ensue, as some employees will want the first half of the week off and others will want the second half. Upshot: You must be careful when calculating nonexempts’ regular rate of pay if they also work overtime during a week they also take time off. For those employees, don’t include their vacation or holiday pay in their regular rates of pay.

Example: Rochelle earns $15 an hour and works eight hours a day. She takes a paid vacation day on Friday; Monday through Thursday she works 45 hours, for a total of 53 hours.

Wrong way: She earns $600 in straight-time p...(register to read more)

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