{"id":121,"date":"2015-07-14T01:18:24","date_gmt":"2015-07-14T01:18:24","guid":{"rendered":"http:\/\/dev.rscinfotech.com\/bcmpayroll\/?p=121"},"modified":"2020-04-21T16:04:03","modified_gmt":"2020-04-21T16:04:03","slug":"payroll-issues-part-one","status":"publish","type":"post","link":"https:\/\/bcmpayroll.com\/bcmold\/payroll-issues-part-one\/","title":{"rendered":"Payroll Issues Part One"},"content":{"rendered":"

While you rely on a payroll provider like BCM Payroll Services (located in Chambersburg, PA<\/a>, serving South Central PA, and Maryland from Hagerstown<\/a> to Frederick), there are many complexities that you still need to be aware of.<\/p>\n

Frequency and Timing of Payrolls<\/h2>\n

Payroll can be paid weekly, bi-weekly<\/a> (every two weeks), semi-monthly, or monthly. Employees tend to prefer more frequent paychecks and employers tend to lean towards less frequent to control costs.<\/p>\n

Keep in mind that some states do regulate the time periods in which an employee must be paid. As always you must be aware of your state and local requirements.<\/p>\n

Direct Deposits<\/h2>\n

Today most employees are paid through direct deposit. Several states prohibit employers from requiring direct deposit of employee paychecks. If your business is located in a state that doesn\u2019t regulate direct deposit than you can require that of your employees, as long as they can deposit their paychecks in the institution of their choice.<\/p>\n

It is best practice to obtain and retain written authorization of the employees direct deposit<\/a> that includes the employee\u2019s financial institution of choice.<\/p>\n

Deductions<\/h2>\n

The circumstances under which employees are permitted to make pay deductions is governed by the Fair Labor Standards Act (FLSA) and related state laws.<\/p>\n

The restrictions vary depending on whether the employee is classified as exempt or non-exempt.<\/p>\n

For non-exempt employees, generally if the deduction is for the primary benefit or convenience of the employer the deduction must not reduce the employee\u2019s pay below the minimum wage or impact their overtime wages. Deductions that can\u2019t reduce a non-exempt employee\u2019s pay below the minimum wage (either federal, state or local) includes the following:<\/p>\n