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Precision Payroll of America, LLC
630.887.3156
877.941.1040
April 29, 2016
PPA Press
by Precision Payroll of America, LLC


New Platform Provides Integration and Efficiency

iSolvedIn our March issue of PPA Press, we introduced our new payroll platform, iSolved. We have smoothly migrated one-third of our customers so far, and have received overwhelmingly positive feedback. As the process continues, we welcome feedback of all kinds so that we are constantly improving the process.

General Ledger Integration
One of the key advantages of our new platform is that it interfaces with virtually any accounting system, eliminating double entry and allowing for more sophisticated reports. Plus, new custom general ledger reporting is a snap.

This helps clients easily figure out the labor burden of any job. In fact, it gives the burden by hour for each employee—including their hourly wage, workers' compensation, employer taxes, Medicare, Social Security, unemployment (fed and state), union dues, health insurance and 401K contributions.

“This kind of robust data helps our clients easily see and analyze the cost of doing business from a labor standpoint – which is almost always their largest expense,” says Paul Sivak, Executive Vice President/Principal at Precision. “With this system, you will be able to see and manage cash flow and job costing in your own customized system.” 

READ MORE ABOUT NEW FEATURES >>


 

New Exempt Minimum Salary Rule on the Horizon

A new rule that was proposed by the Federal Department of Labor last summer is about to be finalized. Our August newsletter featured an article highlighting the details of this proposal and the substantial impact it is likely to have on companies. (See "Critical Salary Level Proposal".) As soon as we learn of the final rule salary levels and requirements, we will send out another notice.

Here are a few things to take a look at while the rule is pending finalization:
  • Identify how many of your current salaried employees will be affected by this new rule – those paid below $50,440. 
  • Assess how many hours beyond 40 (or which are eligible for overtime) your current exempt employees impacted under the proposed threshold (salary less than $50,440) are working. This will be an individual-by-individual assessment.
  • Decide if a salary increase for some or all of those not currently meeting the salary requirements is a plausible financial decision and the best solution for your business. 
  • Decide if it would be better that some or all of the positions be reclassified as salaried non-exempt, with the employees then being entitled to overtime pay if they work overtime hours. 
  • Assess if you can tighten up practices around working overtime or limit the number of overtime hours worked by any newly non-exempt employees, to reduce the higher payroll costs. 
  • Consider if it is feasible to eliminate some first-line supervisory positions or mid-management jobs. This will result in tasks being shifted to others and may result in overburdening the next higher tier of exempt salaried employees since the work will still have to get done. What would be the cost of the problems that may result?
  • Look at specific job tasks and decide if they really need to be done. Can they be eliminated or streamlined through the use of technology? 
  • Check to see if there are any other consequences for changing status of positions from exempt to non-exempt, such as benefits eligibility. 
  • Look at non-obvious issues, such as newly reclassified salaried non-exempt employees checking and replying to emails or texts from home, overnight travel, the need to pay for driving their personal car beyond the normal daily commute from home to work, and legal requirements such as mandatory lunch periods.
  • Document your final decision and contributing information for each reclassified job. This is critical to protect the organization if an affected employee initiates a legal challenge.
To read the rest of the story, visit our website
 


   


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