Depending on the organization, administrative support services and human resources are part of the same unit. This means that HR needs to work very closely with support to manage the changes in payroll regulations.
In so many cases, the workers do not interact with administrative support services during day-to-day operations. Regardless the benefits of having these services as part of your team is crucial.
There are so many areas of employment law that affect how workers are paid.
These support services include managing:
- Record keeping
- Level of education pay scale
- Time sheets/Time cards
- Tax reporting
- Personal growth pay
- Government contract payments
- Minimum Wage
- Subminimum wage
- Time and a half
- Merit Pay
- Commissions earned
- Union dues
- Payment cards
- Matching contributions
- Piece Work
- Work from home
- Holiday Pay
- Hazard Pay
- Severance Pay
- Last paycheck
- Back pay due
Even with all of these areas to work with, administrative services are professionals at crunching numbers. With all of this calculation happening, it is very unwise to interrupt administrative services personnel with things like a missing time card.
There are technical questions to answer too, like:
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- Overtime for part time employees
- Garnishments and release dates
- Tax withholding for severance pay
For the sake of completeness, the answers to those questions are below.
What is Overtime for Part Time Employees?
According to the Federal labor laws, overtime is paid for any time worked over 40 hours per week. Typically, workers earn time and a half for overtime pay. Some states have established different rules regarding overtime.
In California, overtime is paid after working for 8 hours in a single day. If an employee works four 8-hour shifts, that equals 32 hours – not eligible for overtime pay. However, if that employee works three 10-hour shifts, that equals 30 hours. 24 hours at regular pay scale with 6 hours of time and a half pay.
What is a Release of Garnishment?
A court starts a garnishment proceeding in which employers start diverting funds from an employee paycheck initially. After the claim has been satisfied by the court, a judge sends a “Release of Garnishment”.
This release frees the employer from having to divert funds on behalf of the court. It is very important to look at the date of release because the letter could have arrived before or after the release date.
If the company garnished wages for too long unintentionally, the employer owes the employee the back pay even if the funds have not been refunded from the court.
Pay very close attention to release dates.
What is the Tax Rate on Severance Pay?
The tax rate is a flat 25%. Do not forget to also withhold for social security and medicare taxes as well.
For example a $1000 severance pay amount: $250 would be for the severance pay tax rate; $62 for social security; $14.50 for medicare. $1000 – ($250 + $62 + $14.50) = $673.50
Do not forget this step.
Make sure to let your employees know that their severance pay is going to be taxed as well to avoid very upset ex-workers. People depend on the amounts told to them to cover bills and necessities during a transition period.
Administrative Support Services Handle the Money
As a company expands, so does their need for administrative support personnel. These are the people who make sure that every payment to employees is at the correct amount for their time.
Because there is so much to do, it is wise for upper management to make sure that administrative service workers are fully focused on their work. One way to avoid constant interruptions is to use a service like Time Clock Wizard.
This is an online time clock app that helps manage payroll, scheduling and logged time. Start a free trial by clicking here.
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