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Top 10 HR Mistakes You Want to Avoid
1. ADP TOTALSOURCE®
Top 10 HR Mistakes
You Want to Avoid
When it comes to human resource management, compliance is a fact of life.
Below is a list of 10 common HR mistakes. As a business owner you need to be
prepared. Fortunately, these errors are easy to fix once they’ve been identified.
Pay Practices
1. ailure to Pay Employees for Short Breaks –
F 4. Calling Everyone an “Independent Contractor”
The Fair Labor Standards Act does not require – To determine whether an individual is an
employers to provide breaks to employees employee or an independent contractor under
(although some state laws do). However, if you Internal Revenue Service (IRS) guidance, the
do provide short breaks (generally less than 20 relationship of the worker and the business must
minutes), you will be required to pay employees be examined. In any employee-independent
for this time. contractor determination, all information that
provides evidence of the degree of control and
2. ailure to Pay Employees for Accrued Vacation
F
the degree of independence will be considered
Time – Depending on which state you are in, by the IRS. You cannot simply label a person an
you may be required to pay departing employees “Independent Contractor” in an effort to avoid
for their accrued, but unused, vacation time. It paying for workers’ compensation, payroll taxes,
is important, therefore, to carefully track both and benefits.
accruals and usage of this time so that you do not
end up paying out more than what the employee 5. isclassification of Employees – Just because
M
is entitled to receive. you pay an employee a salary does not make the
employee exempt from overtime requirements.
3. Impermissible Deductions from or Withholding Exemption from overtime is tied not only to salary,
of an Employee’s Final Pay – In many states, but also to the type of work the employee is
only certain deductions (such as for a health and performing. Failure to pay an employee overtime
welfare plan or taxes) are allowed to be deducted can result in the employer being required to pay
from an employee’s pay. Additionally, most states double or even triple the amount originally due to
require payment of final wages to a departing the employee.
employee within a specific time frame. There are
penalties associated for failing to pay employees
the appropriate amount and on time.
HR. Payroll. Benefits.