While this swing-and-a-miss by his boss is (hopefully) an exaggeration of pay around the holidays, it does showcase how people depend on their paychecks and bonuses. This sentiment is even more true in winter when spending increases significantly.

It’s therefore critical for companies to understand, plan for, and deliver holiday pay on time. So, how do holidays like Thanksgiving and Veterans Day affect direct deposits?

What Federal Holidays Affect Direct Deposits in 2025? 

• New Year’s Day – Wednesday, January 1, 2025
• Birthday of Martin Luther King, Jr. – Monday, January 20, 2025
• Inauguration Day – Monday, January 20, 2025*
• Washington’s Birthday – Monday, February 17, 2025
• Memorial Day – Monday, May 26, 2025
• Juneteenth National Independence Day – Thursday, June 19, 2025
• Independence Day – Friday, July 4, 2025
• Labor Day – Monday, September 1, 2025
• Columbus Day – Monday, October 13, 2025
• Veterans Day – Tuesday, November 11, 2025
• Thanksgiving Day – Thursday, November 27, 2025
• Christmas Day – Thursday, December 25, 2025

*Federal employees in the Washington, DC, area are entitled to a holiday on the day a President is inaugurated on January 20th for each fourth year.

Why Federal Holidays Matter For Your Payroll

The Federal Reserve and Automated Clearing House (the electronic network for financial transactions including business-to-business payments, direct deposit of payroll, consumer bills, Social Security, e-commerce payments, and tax payments) are closed on federal holidays. 

When the Federal Reserve is closed on holidays, money doesn’t get transferred, AKA direct deposits won’t go through on those days. And while most banks follow suit and close their doors, some remain open but offer minimal services.  

Thus, since your employees won’t receive their direct deposits on holidays, you’ll need to review the next scheduled check date for accuracy and alter the run date to accommodate.

What is Holiday Pay?

Holiday pay is when employees receive compensation, whether or not they worked on a federal holiday. 

Many organizations provide time off and holiday pay for more than 11 federal holidays, such as Easter, Lincoln’s birthday, and election days. 

It’s important to note that holiday pay is part of an organization’s pay policy (such as paying overtime, time-and-a-half, and bonuses) and isn’t tied to the Federal Reserve or Automated Clearing House’s procedures.

Do I Have to Pay My Employees on Federal Holidays?

You must pay your salaried employees their full weekly salary if they work during the federal holiday week. On the other hand, hourly employees do not require pay, as they’re only paid for actual hours worked. 

Are Federal Employees Paid on Federal Holidays?

Yes, the government will pay employees on federal holidays and every four years on Inauguration Day. Most federal employees are entitled to premium compensation when they’re required to work during designated holiday hours. Soldiers are paid by salary and receive equal pay regardless of their work hours.

What if a Federal Holiday Falls on a Weekend?

When the national holiday falls on Saturday, the holidays are celebrated on Fridays. However, if the day falls on Sunday, the holiday will be on Mondays.

The Difference Between Federal and Religious Holidays

You may have noticed that among the 11 federal holidays, only one is a religious day. In fact, Christmas Day is the only religious day officially recognized in the United States. 

To create an equitable and inclusive workplace environment, it’s best practice to have several floating holidays that employees can use throughout the year. Doing so not only enhances work-life balance and attracts top talent, but also respectfully acknowledges people of different cultures and backgrounds. 

Can Federal Employees Receive Paid Leave for Religious Holidays?

Federal employees may change their working schedule to accommodate religious observance that requires abstaining from work at all times during the working week. If employees choose to work on weekends or overtime to make up for the work missed, they’re not entitled to bonuses or additional compensation.

Examples include Jewish employees taking off for Rosh Hashanah and Yom Kippur or Muslim employees using a floating holiday for Eid Ul-Fir. 

3 Tips for Managing Payroll Around Federal Holidays in 2025

Whether you’re currently developing your compensation strategy or already have a plan, it’s wise to consider how you’ll pay your people around federal holidays in 2025. Below are three tips to ensure you choose a strategy that best suits your organization’s needs.

1. Conduct Background Research

Before you say this is how we’ve always done it, it’s essential to consider if there’s room for improvement in your payroll practices around the holidays. 

Make sure you consider your:

• Company finances. You might work at a Fortune 500 company with enough runway to financially support granting your people additional paid days off. Alternatively, you could lead a startup that can’t afford to pay employees holiday pay. Make sure your pay practices around federal holidays match your budget so you can confidently pay your people when it makes sense.
• Workplace culture. Does your compensation and benefits plan match your workplace culture? If not, it’s time to start moving in that direction. Specifically, Xpedition’s team realized their policies needed to align better with their company culture and values. They were intentional about restructuring – they even asked employees their thoughts – before rolling out a new PTO plan.
• Competitors’ holiday pay. Consider your recruitment strategies and how you’ll attract top talent away from your competitors. If your competitors offer the same base pay but an additional three floating holidays, that distinction will come up when candidates choose their future employer. 

2. Communicate, Communicate, Communicate

It shouldn’t come as a surprise when payday is, especially around federal holidays. After developing your strategy, communicate your decision in various ways, including via All Hands meetings, department heads and managers, HR announcements, and your employee self-service portal. 

For example, Fanatics publishes their paid holiday policy publicly so current and future employees are always in the know about specific procedures.

Another part of your communication strategy should be outlining the expectations of your payroll team. For example, if your Director of Payroll usually takes additional days around Thanksgiving, ensure she knows she must submit payroll early so everyone receives their paycheck on time.

3. Hand the Payroll Burden to the Experts

Payroll errors are more common than you think. And we get it – a lot of manual entry is involved when processing payroll information.

In fact, the U.S. Bureau of Labor Statistics reports that 54% of salaried Americans have received inaccurate paychecks, while 46% of hourly employees have experienced incorrect, late, or – wait for it – money deposited into the wrong account. 

To combat these manual errors and regain time, partner with a payroll provider to ensure the right people are getting paid at the right time.

PrimePay at Your Service

As a leading payroll service provider, PrimePay can partner with you to offer support throughout the entire employee lifecycle. Learn more about how PrimePay can help you streamline HR processes, support tax obligations, and manage your payroll calendar as easy as 1-2-3.

Schedule a call today

Please read our disclaimer here.

The post Federal Holidays in 2025: A Guide to Paying Your People appeared first on PrimePay.

By honoring Employee Appreciation Day 2025 (mark your calendars – it’s Friday, March 7), you can help create a supportive company culture and promote positive employer-employee relations.

The Importance of Celebrating National Employee Appreciation Day

Why does employee appreciation matter so much? The below isn’t an exhaustive list, but it helps set the stage for why recognizing your people is essential. 

• It’s the right thing to do. When crunching numbers and viewing your financial runway, it’s easy to lose sight that your employees aren’t commodities – they’re people. Acknowledging your employees extends beyond celebrating their wins; it allows you to be the thoughtful and caring leader you are. 
• It raises retention rates. Studies show that toxic corporate culture is the leading reason for attrition. Moreover, the same study concluded that company culture is over ten times more important to employees than salary. Alternatively, creating a positive culture helps retain and attract top talent.
• It increases productivity. It feels good to be acknowledged, so it’s no surprise that research found that happy employees are 13% more productive than their discontented colleagues during the workday.

24 Creative Employee Appreciation Day Ideas for 2025

Celebrating Employee Appreciation Day in the office is an excellent opportunity to show your employees how much they are valued and appreciated. 

12 In-Person Celebration Ideas

There are many ways to celebrate your employees beyond the standard company-sponsored happy hour. Here are ten ideas to consider to help your employees feel valued.

1. Write customized thank-you notes. Whether you send virtual cards or use old-school stationery, writing personalized notes to each employee is a great way to express gratitude for your team. 
2. Host office awards ceremony. Recognize employees’ achievements with heartfelt and humorous awards. 
3. Schedule a themed dress-up day. Choose a fun theme, like Decades Day, for a day of casual, themed attire that is sure to bring laughs to the entire team. 
4. Have a wellness day. Offer wellness activities like yoga, meditation, and messages with local professionals. 
5. Cater lunch. Reward employees with a catered lunch or order from employees’ favorite restaurants.
6. Decorate desks. Decorate employees’ workspaces and break room with balloons and streamers for a fun surprise when they enter the door. 
7. Allow flexible hours. Allowing employees to leave early or start late lets them use that extra time for personal interests. 
8. Encourage creativity. Set up a painting or craft station for a creative outlet and break. 
9. Invite pets to work. Allow employees to bring their pets for a day. 
10. Hire a food truck. Invite a food truck to shop outside for breakfast or lunch and pay for everyone’s meal.
11. Set up a coffee station. Create a coffee station and snack bar for an all-day treat.
12. Block out time for team-building activities. Team-building experiences work with any budget. Low-key activities (like trivia) and out-of-office ones (like a day of curling) allow employees to bond over things other than work.

12 Virtual Celebration Ideas

It’s equally important to celebrate hybrid and remote employees. Virtual celebrations can be just as memorable and engaging as in-person events. The key is finding creative ways to involve your remote team members in the festivities, ensuring they feel appreciated and included.

1. Cater lunch at home. Give everyone an Uber Eats, Grub Hub, or PizzaTime gift card for a personalized “catered” lunch.
2. Send personalized company swag. Gift cool tech gadgets or branded company merchandise.
3. Build a playlist. Create a collaborative playlist with and for employees.
4. Schedule virtual games. Schedule a virtual experience – like an escape room – for team-building and problem-solving.
5. Record a thank-you video. Create a video compilation of messages from team members. 
6. Create an online recognition wall. Create a virtual wall where employees can post messages of appreciation for their colleagues. 
7. Gift unique items. Get creative with gifts, such as using Unboxed Experiences or gift vouchers, that allow your team to select special gifts on their own.
8. Host an online cooking class. Equip employees with ingredients to make a specific meal in the comfort of their kitchen.
9. Encourage virtual coffee chats. Schedule virtual coffee breaks where teams can connect informally.
10. Have a digital team awards ceremony. Host a virtual awards ceremony to recognize outstanding achievements with digital certificates. 
11. Conduct a virtual wellness workshop. Collaborate with local companies for online wellness workshops, such as a guided meditation session or yoga class.
12. Grant extra flexibility. Allow virtual employees to adjust their schedule – like no meetings on a Friday – to show your gratitude. 

Virtual parties boost morale and are a fun way to unite the team.

Build a Culture of Continuous Appreciation

Ensuring employees feel appreciated is more than just a calendar event. Instead, fostering a culture of appreciation is a long-term commitment that requires ongoing efforts from employers and employees. The more you invest in nurturing this culture, the stronger your team will become and the more successful your organization will be.

Best practices for building a culture of continuous appreciation and gratitude are:

1. Creating a bonus structure. Bonuses and other career-based awards are incredibly motivating and acknowledge hard work and meeting goals.
2. Investing in robust benefits. Another way to show your appreciation is by offering a strong benefits package. You’ll attract and retain top talent and equip employees with the tools to be their best selves.
3. Featuring exceptional employees in company newsletters. Recognizing employees and their efforts across the organization signals that leaders care about their teammates and contributions. 
4. Using a recognition platform. Recognition platforms, such as Assembly, elevate internal communications and help all employees recognize colleagues. 
5. Hosting frequent team-building events. Team-building sessions aren’t just fun and interactive – they also help employees practice collaboration and problem-solving skills.
6. Organize a community service day. Volunteer as a team for a local community project and encourage those working remotely to schedule volunteer activities with friends or family.
7. Offering professional development opportunities. Offer courses or workshops for skill enhancement. 
8. Grant e-learning subscriptions. Provide subscriptions to online courses or learning platforms for continued education and career growth. 
9. Building an employee recognition program. Celebrate work anniversaries, acknowledge high-performing employees, and welcome new employees to impact your workplace culture positively. 
10. Model a healthy work-life balance. It’s one thing to encourage employees to focus on their well-being, but another to see it happen. Work-life balance starts with the leadership team modeling that behavior for the entire company.

Key Dates: Employee Appreciation Day and Other Related Celebrations

In addition to Employee Appreciation Day, numerous other celebrations throughout the year can help boost employee morale and strengthen employer-employee relations. Recognizing the value of diverse professions and acknowledging their hard work fosters an environment of continuous admiration and appreciation. 

Some of these inspiring celebrations include:

• Community Manager Appreciation Day: Jan 27, 2025
• National Employee Benefits Day: April 6, 2025
• National Lineman Appreciation Day: April 18, 2025
• Administrative Professionals Day: April 23, 2025
• Global Employee Health and Fitness Month: May 2025
• Public Works Week: May 18-24, 2025
• System Administrator Appreciation Day: July 25, 2025
• Global Company Culture Day: September 18, 2025
• National Pharmacy Technician Day: October 21, 2025

Measure the Impact of Employee Appreciation Initiatives

Measure the Impact of Employee Appreciation InitiativesWhile it’s vital to implement employee appreciation initiatives, you’ll also want to measure their influence on employee satisfaction, engagement, and retention. By tracking and evaluating the success of your efforts, you will gain valuable insights into their effectiveness and make informed decisions about future initiatives.

To measure the impact of your employee appreciation initiatives, consider anonymously collecting employee feedback, measuring employee engagement and retention rates, and analyzing the impact of these initiatives on employee productivity. By doing so, you’ll be able to determine whether your efforts are making a positive difference in your workplace and identify areas for improvement.

PrimePay’s Human Resources Team uses Assembly to cultivate employee appreciation in an ongoing manner. Company activity is reviewed within Assembly to understand team recognition better.

Employee Recognition Helps Build a Positive Company Culture

In short, celebrating Employee Appreciation Day and fostering a culture of continuous appreciation is crucial for building solid employer-employee relations, boosting employee satisfaction, and improving employee retention. By planning creative celebrations for both in-office and remote teams, you can ensure that every team member feels valued and appreciated.

Adapt your appreciation efforts to accommodate remote and hybrid teams’ unique needs, and remember to measure the impact of your employee appreciation initiatives to ensure their success. Doing so will help create a thriving work environment where employees feel motivated, engaged, and committed to performing their best.

The post 24 Creative Ways to Celebrate Employee Appreciation Day (and 10 Ways to Recognize Your People Year-Round) appeared first on PrimePay.

And that last piece – closing the books and handling your end-of-year reporting – can be a doozy. That’s because HR and payroll teams must prepare for the year’s end, comply with tax laws, and plan for the next annual payroll. 

A great way to make sure you’ve crossed all your t’s and dotted your i’s is to follow a payroll checklist. By following a year-end payroll checklist, you can better track employee pay, manage deductions, and review payroll data. The results? Your business remains compliant, employees are paid accurately, and tax obligations are met.

Grab your free year-end payroll checklist to stay on track through the new year.

1. Prepare for Year-End Payroll

To prepare for your year-end payroll, there are three primary steps to complete including data verification, payroll provider coordination, and fringe benefits reporting. We will cover each of these in more detail below.

Verify Employee and Contractor Information

In the best-case scenario, you’ve maintained accurate employee and contractor information throughout the year. Doing so will make your Q4 smooth sailing and ideally prevent expensive delays and penalties with tax authorities. 

If you’re not up-to-date, make sure you:

• Confirm employee data, including full names, social security numbers, addresses, and other essential details.
• Verify contractors’ tax ID numbers using Form W-9.
• Update your records if discrepancies are identified.
• Inform your payroll service provider of any modifications.

TIP: Store your payroll records and tax forms for at least four years to stay compliant with legal obligations and avoid potential penalties. It’s also good to store these records digitally for easy access and streamlined record-keeping.

Coordinate with Your Payroll Provider

Maintaining an open dialogue with your payroll provider aids in accurate year-end payroll processing, prevents delays, and helps avoid expensive errors. Contact your payroll provider before the last payroll of the calendar year to discuss the following:

• Processing the final payroll.
• Any pay date changes due to holidays.
• Tax withholdings, employee contributions, and other essential payroll adjustments.

When processing year-end payroll, consider the processing time and method to ensure you hit deadlines and pay your people in a timely manner.

Manage Fringe Benefits and Third-Party Payouts

Maintaining compliance and avoiding potential tax penalties requires accurately reporting fringe benefits and third-party payouts.

• Submit fringe benefits – such as health insurance coverage and retirement contributions – to your payroll provider no later than your last scheduled payroll of the year. 
• Report the fair market value of these benefits on the employee’s W-2 form, ensuring all tax liabilities are accounted for.
• Provide details of any third-party disability payments to your payroll provider. 

After running the final payroll of the year, verify that all employee wages and deductions are accurate before reporting on the W-2 form.

2. Navigate State Reporting Requirements

Each state has its rules and regulations, making handling state reporting requirements a bit of a mess if your employees are dispersed.

• Wage-and-hour requirements
• Withholding and tax reporting
• Unemployment tax reporting
• Specific local regulations

The differences between states are vast and varied, so you must familiarize yourself with the specific requirements of each state you operate in.

However, ignoring these requirements can lead to severe consequences, including financial penalties, interest charges, and potential legal repercussions. 

State-Specific Regulations

State-specific regulations can be as varied as the landscapes of the states themselves. Take California, for example. Employers with 100 or more employees have to report pay and hours worked data by establishment, and all employers have to report new or rehired employees to the New Employee Registry within 20 days of their employment. In addition to these state-specific regulations, employers must comply with the Fair Labor Standards Act and relevant labor laws.

Meanwhile, in Texas, there are distinct state payroll tax forms that employers can access on the official website of the Texas Comptroller of Public Accounts. Think of it as each state having its own unique guidebook that employers must understand and follow.

TIP: Keep your state information in one place for quick reference and up-to-date resources. Or, bookmark our Wage and Tax Resources for a convenient one-stop-shop of federal and state-specific information.

Tax Compliance Strategies

With each state having its rulebook, it’s crucial to have a game plan for compliance. Some strategies to employ include:

• Registering with the appropriate state government.
• Ensuring accurate calculation and withholding of federal and state payroll taxes.
• Reporting these taxes to the relevant government agencies.

But remember, failing to comply with state payroll reporting requirements can lead to severe consequences, including late fees, interest charges, fines, and, in certain instances, felony charges and imprisonment. 

The right payroll software gives you a birds-eye view of where your people are – literally. Keeping employee addresses up-to-date makes payroll management that much easier come tax season.

3. Distribute W-2 and 1099 Forms to Your Employees and Contractors

Business owners must complete and distribute W-2 and 1099 forms to employees and contractors by January 31. These forms report the employee’s wages, tax withholdings, and other essential payroll information for the calendar year. 

Once you’ve provided W-2 and 1099 forms to your employees, submit them to the appropriate tax authorities, such as the SSA and IRS. Submitting these forms on time is necessary to prevent penalties and remain compliant with federal and state tax laws.

For independent contractors, you must send Form 1099, which documents payments for services provided during a specific pay period. It’s a crucial step in reporting any amount of federal income and fulfilling tax reporting obligations.

However, this form comes with its own set of details. You need to have the contractor’s name and address, their taxpayer identification number (TIN), and the total amount paid to the contractor during the tax year. Consider it a to-do list to complete before handing out Form 1099. 

Again, you must distribute both electronic and paper records of W-2s and 1099s by January 31. Delayed distribution can result in penalties ranging from $60 to $310 per form, a price you don’t want to pay.

TIP: If the worst-case scenario occurs – you forget to file or have incorrect W-2s – there are steps to take to mitigate the damage (unfortunately, building a time machine isn’t one of them). 

Using an employee self-service portal allows employees to update their information and see tax documents in one place.

4. Meet Deadlines and Maintain Compliance

An integral part of your year-end payroll checklist is staying versed on essential payroll forms and deadlines. In short, your business must complete, file, and submit applicable payroll tax forms to the IRS, SSA, state tax authorities, and other relevant entities. 

Tax Forms and Filing Deadlines

Staying informed about tax forms and filing deadlines is essential for any business, especially in Q4. In addition to W-2 and 1099 forms, companies must file the following documents, each with its distinct filing deadline:

1. Form 940, which reports federal unemployment tax, is due by January 31.
2. Quarterly Form 941, which reports federal income tax, Social Security, and Medicare taxes, is also expected by January 31.
3. Annual Form 944, which reports federal income taxes, Social Security, and Medicare taxes, is due by January 31.

Keeping track of these tax forms and filing deadlines can help your business remain compliant, avoid penalties, and maintain precise accounting records.

ACA Reporting Requirements

When it comes to ACA reporting, being well-informed is your strongest defense. Applicable Large Employers (ALEs) need to provide the IRS with details regarding the health care coverage offered to full-time employees, adhering to guidelines set by the Equal Employment Opportunity Commission. 

This step is where Forms 1094-B and 1095-B, as well as 1094-C and 1095-C, come into play. They are your allies in reporting this information and keeping your payroll records in check.

• IRS Form 1094 consolidates the information returns of Form 1095 and provides details about employee eligibility for tax credits.
• IRS Form 1095 reports information about individuals who enroll in a qualified health plan through the Health Insurance Marketplace.

These forms come with a deadline. For paper filers, they must be submitted by February 28, 2024, or March 31, 2024 if you’re filing electronically. Make sure you mark these dates on your calendar to keep your reporting process smooth sailing. If you fail to submit these forms by the deadlines, you could face penalties ranging from $280 to $580 per return. 

TIP: Managing compliance isn’t an easy feat. Let your payroll provider navigate and file compliance forms to reduce manual errors and missed deadlines.

5. Update Payroll Policies

As the year-end approaches, it’s essential to review your payroll structure and policies and comply with federal, state, and local labor laws. 

Review Payroll Structure and Policies

Evaluating your first payroll structure and policies is vital to ensure accurate tax withholding and adherence to federal regulations. Consider any changes needed for the upcoming year, such as pay-on-demand or paycheck delivery options. Adjustments to your payroll policies can better accommodate your employees’ needs and guarantee an effortless payroll process in the upcoming year.

Don’t forget to stay informed about changes in state and local minimum wage laws or health insurance coverage options, as these factors can impact your employee compensation plans.

The right payroll software allows you to adjust your payroll schedule to suit your organization’s needs.

Plan For Holiday Scheduling Challenges

Federal holidays can be a double-edged sword. While they bring joy and relaxation, they can also challenge payroll processing and create some late nights. 

By following these steps, you can make sure your payroll tasks remain uninterrupted:

1. Set or modify a pay schedule.
2. Recognize holiday dates for adjustments.
3. Notify employees about changes in advance.
4. Update contracts for new hires.
5. Smoothly transition from the old to the new plan.

It’s advisable to adjust payroll schedules for holiday periods when the regular pay date coincides with a weekend or a bank holiday. Make these adjustments in advance to ensure punctual payment to employees. 

Disseminate Compliance Posters and Regulations

No, those compliance posters aren’t hanging in the office breakroom for light reading. Maintaining compliance with federal, state, and local labor laws is crucial to avoid fines, fees, and potential lawsuits. 

Keeping your compliance posters current and staying updated about the latest labor laws can protect your business from potential legal problems and foster a safe and compliant work environment for your employees.

Establish Deposit Schedules

Determining your deposit schedule for the new year is essential to ensure timely tax payments and prevent penalties (is it clear that we want 2025 to be a penalty-free year?). Match your deposit schedule with tax deadlines and adjust as needed to comply with federal and state tax laws.

6. Align Year-End Accounting Procedures and Business Goals

As the year winds down, it’s vital to focus on organizing your accounting records and setting goals for the upcoming year. 

Clean Up Accounting Records

One part of your year-end financial review is cleaning up your accounting records. Plan to:

• Clear up any irregularities in outstanding invoices.
• Remove unused or closed accounts.
• Clear any deposited funds to maintain accurate accounting records.

You can ensure a solid financial foundation for the new year by addressing discrepancies in your accounting records.

Besides cleaning up your records, you’ll want to stay updated about any changes in tax laws and regulations that may affect your business. These changes will keep your finances on track (and, once again, avoid those penalties).

Tie Business Goals and Employee Feedback Together

Setting business goals is vital in planning for the upcoming year and driving growth and improvement. Equally important is having your team make these plans become a reality. As your organization develops goals for 2025, consider how you can integrate these goals into performance management. Providing feedback to encourage growth and development is essential.

Offering employee feedback helps ensure your team members know their performance and how they contribute to the organization’s success. Fostering a culture of continuous improvement can contribute to growth and success in the new year.

When performance evaluations live in cloud-based software, you provide a more equitable and transparent experience for leadership, managers, and direct reports. 

Following a comprehensive year-end payroll checklist can provide a smooth transition into the new year and set your business up for success. With the above steps, you’ll be well-prepared to tackle the challenges and opportunities in the new year.

If you want to add one more item to your checklist, consider switching to a payroll provider that includes human capital management so all your people and compliance needs are in one place.

The post Year-End Payroll Checklist for Businesses appeared first on PrimePay.

The Society for Human Resource Management (SHRM) reports that 42% of employees who experience a negative work culture consider leaving, while only 9% of those with a positive experience feel the same.

It stands to reason that companies should prioritize collecting information and designing programs to improve EX, right? Well, our 2024: The Role of Data and Tech in the Employee Experience report shows that only 20% of businesses collect employee experience data on a frequent basis. 

This number is not high enough. Every company must prioritize EX to ensure a strong foundation of teamwork and company commitment in a competitive marketplace.

What is Employee Experience?

Employee experience includes all interactions employees have with your business, from recruitment and onboarding to their eventual departure. This process includes the job application, performance assessments, exit interviews, and any other interactions (in-person or online) they have with others at your company. 

Why is EX So Important?

You’re buried in EX every day. No one knows better than you that a poor or excellent EX directly influences:

• Corporate culture
• Employees’ perception of leadership and their decisions
• Employee retention and growth
• Company revenue, efficiency, and innovation

The degree to which your organization improves EX will determine the investment you must make in hiring and rehiring employees rather than retaining, growing, and upskilling them.

Improving the employee lifecycle can have a ripple effect on talent acquisition as well. We all know top talent today is in high demand — the companies that land these high-performing individuals are the ones that are laser-focused on building a positive and inclusive EX. 

Consider the following data:

• SHRM found that employees with a positive EX are 68% less likely to think about leaving the company. Considering that voluntary staff turnover costs the private sector a trillion dollars each year, improving retention can make a massive difference for your bottom line.
• EX is even more important when we look at people’s attitudes towards their current jobs. Fifty-one percent of employees in the U.S. say they’re looking for a new job, yet studies show that 42% of turnover is avoidable with just a little more proactive effort from leadership. 
• A positive EX can also reduce the cost per hire. Currently, U.S. businesses spend $4,700 for every new employee they bring into the business. EX can reduce some of these costs by helping you build a strong employer brand that attracts referrals and word-of-mouth.

All of these factors make employee experience important and relevant for any modern-day organization. And just as you can carefully design and curate the customer experience (CX), you can also create a purpose-built employee experience framework that serves as a guidepost for all employee interactions with each other and the business.

Employee Experience Challenges

Before we dive into strategies on how to improve EX, let’s first acknowledge that getting EX right is hard work and fraught with obstacles. Below are some of the most common struggles you may face and some options to address them.

Compensation Expectations

Compensation packages are a common contention point between employees and their leadership team, especially when there’s a discrepancy between what the employee desires and what you as an employer can offer. This misalignment can, of course, reduce their job satisfaction.

One way to circumvent this challenge is to simply be transparent about pay from the outset. Salary range transparency laws accomplish this while aiming to close the gender pay gap. But other transparency methods, like providing aggregate salary information or offering a percentage range of possible salaries, can increase employee performance just as much without necessarily revealing individual salary figures. 

Employee Burnout

Another real threat to EX is burnout. Seventy-seven percent of employees say they’ve experienced burnout in their current job, and 91% say that it impacts the quality of their work. 

Corporate culture plays a big role in inspiring positive behaviors that keep burnout at bay. For example, the above study says leadership’s lack of recognition and support is one of the top reasons burnout can run rampant and unchecked. Also, adjusting company attitudes towards time off and encouraging your teams to “switch off” after work (and avoid those 8pm Slack requests) reduces exhaustion and disengagement.

Disconnected Employees

Almost a third (27%) of private sector employees in the U.S. work remotely either some or all of the time. While remote work gives employees flexibility and agency over their workday, it can also create a disconnect between themselves and the company. 

Companies that have embraced remote or hybrid work models should look at designing inclusive communication channels and processes that allow all employees to contribute, ask questions, and feel like they’re part of the team.

Conflicting Values

Employee attitudes are changing, and a good salary no longer cuts it when it comes to employee loyalty. In fact, 59% of professionals in Europe say they wouldn’t work for a company that doesn’t share their values.

Your corporate values matter, as does how your leadership team acts on them in the workplace. Be transparent about your values at work. Encourage ethics-based conversations with your employees and invite them to provide feedback and ideas to improve your processes and social and environmental responsibility.  

Evaluating Your Business’ Employee Experience

No improvements can be made to your existing EX until you understand how effective it already is — and where you are missing the boat. Since employee experience touches on every aspect of a person’s professional life, your evaluation should consider both the tangible aspects of EX (like opportunities for growth and career development), as well as intangible aspects (like the emotional impact of your leadership style and corporate culture). 

Here are some useful ways to understand how your employees feel at work and what you can do to improve that.

Measure Your Employee Net Promoter Score (eNPS)

Employee Net Promoter Score (eNPS) surveys are great for understanding the current state of your employee experience and any upward or downward trends throughout the year. The survey consists of only two questions that can easily gauge how loyal employees feel toward your organization at any given time: 

1. On a scale of 0 to 10, how likely are you to recommend our company as a place to work to a friend or colleague?
   
2. What’s the main reason for your score?

Shockingly, only 17% of HR leaders report an excellent eNPS score — something to keep in mind as you poll your own employees. No matter the result, tracking your NPS score regularly can give you a clear direction on what changes you need to make to improve it. And who knows, you may be pleasantly surprised.

Employee Satisfaction Index (ESI)

Unlike eNPS, which is geared more towards employee loyalty, Employee Satisfaction Index (ESI) surveys look at employees’ immediate satisfaction with specific aspects of their jobs. ESI surveys are usually more in-depth and include areas such as work-life balance, career development opportunities, leadership and management, and overall experience with team collaboration and communication. 

The questions you ask will depend on your organization’s needs, but here are some common ones you can use as a starting point. Where possible, try to steer towards open-ended questions to get more detailed and nuanced answers:

• How satisfied are you with your current job role?
• How effectively does your workspace support your productivity?
• Do you feel you have sufficient opportunities for professional growth?
• Do you feel a sense of belonging in your team?
• What changes would you like to see in the workplace?

If you haven’t done this kind of survey before and are looking to build your employee experience strategy, it may be useful to initially measure your ESI every quarter. Once you have a good pulse on how your employees feel, you can move them to an annual cadence. 

Stay Interviews

One-to-one interviews with employees who’ve been with the business for a while — known as Stay Interviews — can be excellent for uncovering ways to improve employee experience in your organization. They’ve especially grown in popularity in recent years, with 46% of nonprofit organizations saying they conduct stay interviews (as opposed to 33% in 2022).

“Stay interviews will not lead to perfect outcomes, but they will certainly improve engagement and retention in your company. And they will do this by helping your leaders build more productive one-on-one relationships with their employees,” says Richard P. Finnegan, author of The Power of Stay Interviews for Engagement and Retention.

These interviews look at how your employees feel at work, what they like or don’t like about it, and aspects of your work environment they’d change.

Exit Interviews

Exit interviews with employees who are about to leave the business are just as, if not more, valuable as stay interviews. Since they’re leaving your organization, these employees are usually much more transparent about their EX and can give you valuable feedback on how to improve it.

Only 30% of HR leaders actually use exit interviews as a strategy for collecting employee feedback. However, 54% of those who’ve updated their offboarding strategy in the last year say they’re adding exit interviews to their practice, further confirming their importance for HR teams.

How to Design an Employee Experience

Once you understand the state of the employee experience, you can start working on designing a better one. The first step is to create an employee experience strategy (if you don’t have one already) that examines the overall employee lifecycle and any areas you may be lacking. 

Once you know where you stand and where you want to go, you can start putting an action plan in place with specific tasks and timeframes.

Some of these changes might be substantial (like new technologies and workflows), while others can be small but just as impactful (for example, a suggestion box). The details of the adjustments you make will depend on your business, but here are some high-level things you can do to design an ideal EX for your workforce:

Map Out the Entire Employee Journey 

Before making any meaningful change, you must understand the processes employees go through from the first interview to the exit interview. Here, it’s a good idea to review the number and the types of interviews candidates have, the length and format of your onboarding process, the team-building elements you put in place for new hires to feel more welcome and comfortable, and the standards you have in place for promoting, increasing salaries, and making the day-to-day an enjoyable experience. 

Identify Data Gaps and Inconsistencies

As you analyze your employee journey, try to spot inefficiencies and areas where you may be missing key information. For example, do you find that your recruitment data lives in one system, benefits and compensation in another, and performance reviews in yet another? 

Data shows that almost two-thirds (63%) of organizations rely on spreadsheets and disparate systems for tracking and storing HR data. This is a staggering number, considering that data unity and transparency can inform better employee policies and, ultimately, a better employee experience. Investing in a dedicated HR software solution can be a true turning point for your team by consolidating data, providing reports, and giving you the tools you need to identify gaps and opportunities.

Introduce Incremental Changes

Once you’ve addressed the changes you want to make both within your processes and the employee journey itself, it’s time to take action. Create a plan with specific changes you can make immediately as well as in the mid-, and long-term future. 

Seventy-four percent of HR leaders believe change positively impacts EX — and these changes don’t have to be massive or expensive to be effective. For example, many organizations that are looking to improve EX focus on their recognition and rewards program (76%), improving internal communications (62%), and their employee resource groups (ERGs) (60%).

Consider Your Culture and Work Environment

As you work on your employee experience, don’t forget to zoom out and take in the wider organizational context in which these changes will exist.

Company culture plays a massive role in making employees feel a sense of belonging, and it’s something that you, as a leader, can influence directly. Consider the following:

• What behaviors does your leadership team exhibit? Are they in line with your values?
• What’s your corporate communication style?
• What opportunities do employees have to collaborate within and outside of their teams?
• What systems do you have in place to ensure your employees’ well-being?

Your work environment (both physical and digital) can also influence how employees feel at work. Some of the questions to consider here are:

• Is the office environment comfortable and conducive to productive behavior? 
• Have all employees had sufficient training on all digital tools and workflows? 
• Can some of these processes be simplified or made easier?

Your digital work environment is especially relevant for hybrid or remote employees for whom the digital workspace is their lifeline to the rest of the organization. Do your employees have the tools, access, and infrastructure they need to proactively contribute and collaborate on a daily basis? Check you have the right processes and requirements in place to ensure all of the bases are covered. 

The Evolving Nature of EX

The employee experience is never static. How your employees feel about working for you and what they expect from you as an employer will continuously evolve. That’s why it’s important to keep your finger on the pulse of employee satisfaction and take proactive action to make everyone feel welcomed, supported, and appreciated. This caring attitude is one of the best ways to ensure a productive and thriving workforce.

The post Build an Employee Experience That Drives Performance appeared first on PrimePay.

Payroll scams cost companies billions of dollars annually, and unfortunately, these scammers aren’t slowing down. In fact, they’re getting more creative, which is why it’s critical to understand common scams and how to identify them. 

What are Payroll Scams?

Payroll scams are fraudulent schemes that exploit weaknesses in payroll processes to divert or steal funds. Scams are usually carried out by external people who gain access to sensitive payroll information. 

The rise of digital payroll systems has increased the complexity and frequency of payroll scams, making it essential for businesses to understand and identify these threats.

Types of Payroll Scams

Payroll scams come in various forms, each leveraging different tactics to exploit vulnerabilities in payroll systems. These scams can lead to significant financial losses, damaged reputations, and legal consequences. Understanding payroll scams and how they operate is the first step in safeguarding your organization against them.

Below are some of the most prevalent types.

Hacking Employee Email Accounts

Email hacking is a tactic where cybercriminals gain unauthorized access to employee email accounts to carry out payroll fraud. Once they have access, they can manipulate payroll information, such as changing direct deposit details, or use email to impersonate the employee in further scams.

According to the FBI’s 2023 Internet Crime Report, business email compromise (BEC) scams result in over $2.9 billion in losses. The report warns readers of these common BEC themes:

• Requesting W-2 information 
• Giving large amounts of gift cards
• Offering cryptocurrency exchanges
• Prompting direct payment from payroll platform instead of employer

Lookalike Domains

Lookalike domains are fraudulent websites or email domains that closely resemble legitimate ones, often with slight variations in spelling. Scammers use these domains to trick payroll departments into believing they are interacting with a legitimate entity, such as a trusted vendor or employee, when, in fact, they are being duped.

This type of scam continues to evolve with technology; one report noted a 143% increase in ransomware attacks from 2022 to 2023. Even more alarming, the same research found that victims of ransomware attacks are almost six times more likely to experience a subsequent attack within three months. 

Spoof Calling

Spoofing, or impostor scams, involves criminals impersonating legitimate businesses, employees, or government agencies over the phone using technology that masks their actual phone numbers. These calls often pressure departments to change payroll or direct deposit information immediately.

Imposter scams account for 15.8% of all fraud reports, resulting in $2.7 billion in losses in 2023. 

Phishing

Phishing is a cyberattack where fraudsters send emails that appear to be from a trusted source, such as a bank or an executive within the company, to trick recipients into providing sensitive information, such as login credentials or payroll data. Once the scammers have this information, they can access payroll systems and divert funds.

According to Proofpoint, 84% of organizations experienced at least one successful phishing attack in 2022, with the average cost per attack reaching $14.8 million when payroll fraud was involved. 

Payroll Diversion

Payroll diversion is an increasingly sophisticated payroll scam where cybercriminals manipulate payroll systems to redirect employee wages into fraudulent accounts. It’s important to note that this scam often starts with phishing attacks. 

Once the payroll department makes the change, the employee’s paycheck is diverted to the scammer’s account, often without the employee or employer noticing until it’s too late. 

How to Prevent Payroll Scams

Preventing payroll scams requires a proactive approach that combines technology, employee training, and stringent procedures. Organizations can significantly reduce their vulnerability to payroll fraud by implementing the following strategies.

1. Use a Safe and Secure Payroll Provider

Payroll involves handling sensitive information – such as Social Security numbers, bank account details, and tax records – making it a prime target for cyberattacks and fraud. Your payroll provider should offer robust security measures to safeguard this information and comply with industry standards and regulations. By selecting a reliable provider, you reduce the risk of data breaches and ensure that your payroll operations are efficient and protected against potential threats.

Why It Works: Modern payroll systems flag anomalies, such as unexpected changes in direct deposit information or unusual payroll amounts, so organizations can further investigate. 

PrimePay’s automated payroll processing ensures your payroll is accurate and secure.

2. Implement Multi-Factor Authentication

Multi-factor authentication (MFA) adds an extra layer of security by requiring employees to verify their identity using two or more methods before accessing payroll systems. These methods can include something they know (e.g., a password), something they have (e.g., a mobile device), or something they are (biometric verification).

Why It Works: MFA makes it much harder for cybercriminals to gain unauthorized access to payroll systems, even if they have stolen login credentials. According to Microsoft, MFA can block over 99.9% of automated cyberattacks, including those targeting payroll systems.

3. Educate Employees on Phishing and Social Engineering

It is crucial to regularly train on recognizing and responding to phishing emails, spoofed calls, and other social engineering tactics. According to a Verizon report, 85% of data breaches involved a human element.

Employees should be aware of the latest scams and know how to report suspicious activities.

Why It Works: Educated employees are the first defense against payroll scams. They can help prevent fraudulent activities by identifying and reporting potential threats before they cause damage.

4. Establish Strict Verification Procedures

Implementing strict procedures for verifying payroll changes, such as direct deposit information, is essential. This can include requiring in-person verification or a secondary confirmation step, such as a phone call to the employee.

Why It Works: Verification procedures ensure that any changes to payroll information are legitimate and prevent unauthorized alterations. In fact, an Association of Certified Fraud Examiners (ACFE) report found that organizations with strong internal controls detected and mitigated fraud 50% faster than those without such measures.

5. Regularly Audit Payroll Systems

Regular audits of payroll systems can help identify anomalies or discrepancies that may indicate fraudulent activity. Audits should include reviewing employee records, direct deposit details, and payroll tax filings.

Why It Works: Regular audits provide an opportunity to catch payroll scams early, minimizing the financial impact and allowing corrective actions.

Protect Your Payroll

Although payroll scams are a significant threat, they can be prevented with the right combination of technology, employee education, and rigorous procedures. 

By implementing multi-factor authentication, educating employees, establishing verification processes, conducting regular audits, and utilizing fraud detection software, businesses can protect themselves from payroll fraud’s costly and damaging effects.

The post Common Payroll Scams and How to Identify Them appeared first on PrimePay.

Minimum Wage – A Snapshot

Although the past few years have seen plenty of changes in the U.S. workforce, the federal minimum wage has remained constant. The federal minimum wage has been at $7.25 an hour since July 24, 2009, when it was increased from $6.55 an hour.

Regardless of the federal rate, each state can set its own minimum wage for workers, and sometimes these wages can even vary by city and county. State minimum wage rates are typically governed by each individual state’s legislative activities.

According to the Department of Labor (DOL), states have to adhere to the federal minimum wage law if their state minimum wage is lower than the federal rate. Or, if the state minimum wage is greater than the federal minimum wage, then the state rate prevails. Therefore, if a state, city, or county has a minimum wage greater than $7.25, employers are required to pay that higher rate to employees.

With that being said, here are some minimum wage highlights from 2022 and 2023 along with anticipated state-by-state minimum wage increases to be aware of for 2024.

In 2023, 26 states implemented a higher minimum wage. However, as of July 1, 2023, 13 states were still adhering to the federal standard of $7.25 an hour:

1. Idaho
2. Indiana
3. Iowa
4. Kansas
5. Kentucky
6. New Hampshire
7. North Carolina
8. North Dakota
9. Oklahoma
10. Pennsylvania
11. Texas
12. Utah 
13. Wisconsin

Ohio is a special case in that the federal rate of $7.25 an hour applies only to employers that gross less than $372,000 annually. Outside of that condition, Ohio’s higher state minimum wage applied. See below for the 2023 minimum wage information for Ohio.

State	2023	2024	'23 vs '24
Alaska	$10.85	$11.73	$0.88
Arizona	$13.85	$14.35	$0.50
California	$15.50	$16.00	$0.50
Colorado	$13.65	$14.42	$0.77
Connecticut	$15.00	$15.69	$0.69
Delaware	$11.75	$13.25	$1.50
Hawaii	$12.00	$14.00	$2.00
Illinois	$13.00	$14.00	$1.00
Maine	$13.80	$14.15	$0.35
Maryland	$13.25	$15.00	$1.75
Michigan	$10.10	$10.33	$0.23
Minnesota	$10.59	$10.85	$0.26
Missouri	$12.00	$12.30	$0.30
Montana	$9.95	$10.30	$0.35
Nebraska	$10.50	$12.00	$1.50
New Jersey	$14.13	$15.13	$1.00
New York	$14.20	$16.00	$1.80
Ohio	$10.10	$10.45	$0.35
Rhode Island	$13.00	$14.00	$1.00
South Dakota	$10.80	$11.20	$0.40
Vermont	$13.18	$13.67	$0.49
Washington	$15.74	$16.28	$0.54

Looking for detailed State Minimum Wage & Tax Details? Select Your State.

Alabama	Illinois	Montana	Rhode Island
Alaska	Indiana	Nebraska	South Carolina
Arizona	Iowa	Nevada	South Dakota
Arkansas	Kansas	New Hampshire	Tennessee
California	Kentucky	New Jersey	Texas
Colorado	Louisiana	New Mexico	Utah
Connecticut	Maine	New York	Vermont
Delaware	Maryland	North Carolina	Virginia
District of Columbia	Massachusetts	North Dakota	Washington
Florida	Michigan	Ohio	West Virginia
Georgia	Minnesota	Oklahoma	Wisconsin
Hawaii	Mississippi	Oregon	Wyoming
Idaho	Missouri	Pennsylvania

Alabama Wage and Tax Facts
	State Effective 7/24/09	Federal Effective 7/24/09
Alabama Minimum Wage
Minimum Wage	$7.25*	$7.25
Minimum Cash Wage (Tipped Employee)	$2.13*	$2.13
Maximum Tip Credit	$5.12*	$5.12
Youth Minimum Wage	$4.25*	$4.25
Alabama State Income Tax
Wage Withholding	Tables
Supplemental Wage / Bonus Rate	5.00%
Alabama Unemployment Insurance
Maximum 2024 Taxable Earnings (Unchanged from 2023)	$8,000
Employee 2024 Deduction	None
Employer 2023 Tax Rates (Plus 0.06% employment security assessment)	0.20 - 5.4%
Standard 2023 New Employer Rate	2.70%
Voluntary Contribution Permitted	No
State Resources
Dept. of Labor: https://adol.alabama.gov/
Dept. of Revenue: https://www.revenue.alabama.gov/
Alaska Wage and Tax Facts
	State Effective 1/1/24	Federal Effective 7/24/09
Alaska Minimum Wage
Minimum Wage	$11.73	$7.25
Minimum Cash Wage (Tipped Employee)	$11.73	$2.13
Maximum Tip Credit	Not Allowed	$5.12
Youth Minimum Wage	$7.25	$4.25
Alaska State Income Tax
Wage Withholding	None
Supplemental Wage / Bonus Rate	None
Alaska Unemployment Insurance
Employer 2024 Tax Rates	1.0 - 5.4%
Standard 2024 New Employer Rate	1.16%
Voluntary Contribution Permitted	No
Maximum 2024 Taxable Earnings (Increased from $47,100 in 2023)	$49,700
Employee 2024 Deduction (Decreased from 0.51% in 2023)	0.50%
State Resources
Dept. of Labor and Workforce Development: https://www.labor.state.ak.us
Dept. of Revenue: https://www.revenue.state.ak.us
Arizona Wage and Tax Facts
	State Effective 1/1/24	Federal Effective 7/24/09
Arizona Minimum Wage
Minimum Wage	$14.35	$7.25
Minimum Cash Wage (Tipped Employee)	$11.35	$2.13
Maximum Tip Credit	$3.00	$5.12
Arizona State Income Tax
Wage Withholding	% of AZ Gross Taxable Wages
Supplemental Wage / Bonus Rate	No Provision
Arizona Unemployment Insurance
Maximum 2024 Taxable Earnings (Unchanged from 2023)	$8,000
Employee 2024 Deduction	None
Employer 2024 Tax Rates	0.05 - 14.03%
Standard 2024 New Employer Rate	2.00%
Voluntary Contribution Permitted	Yes
State Resources
Dept. of Economic Security: https://des.az.gov
Dept. of Revenue: https://azdor.gov
Arkansas Wage and Tax Facts
	State Effective 1/1/21	Federal Effective 7/24/09
Arkansas Minimum Wage
Minimum Wage	$11.00	$7.25
Minimum Cash Wage (Tipped Employee)	$2.63	$2.13
Maximum Tip Credit	$8.37	$5.12
Arkansas State Income Tax
Wage Withholding	Tables
Supplemental Wage / Bonus Rate	4.40%
Arkansas Unemployment Insurance
Maximum 2024 Taxable Earnings (Unchanged from 2023)	$7,000
Employee 2024 Deduction	None
Employer 2024 Tax Rates (Includes 0.125% administrative assessment)	0.225 - 10.125%
Standard 2024 New Employer Rate (Includes 0.125% administrative assessment)	2.03%
Voluntary Contribution Permitted	Yes
State Resources
Dept. of Workforce Services: https://dws.arkansas.gov
Dept. of Finance and Administration: https://www.dfa.arkansas.gov
California Wage and Tax Facts
	State Effective 1/1/24	Federal Effective 7/24/09
California Minimum Wage
Minimum Wage	$16.00	$7.25
Minimum Cash Wage (Tipped Employee)	$16.00	$2.13
Maximum Tip Credit	Not Allowed	$5.12
California State Income Tax
Wage Withholding	Tables
Supplemental Wage / Bonus Rate	6.6%, except 10.23% for BONUSES and earnings from STOCK OPTIONS
California Unemployment Insurance
Maximum 2024 Taxable Earnings (Unchanged from 2023)	$7,000
Employee 2024 Deduction	None
Employer 2024 Tax Rates (Plus 0.1% employment training tax assessed on most employers)	1.5 - 6.2%
Standard 2024 New Employer Rate (Plus 0.1% employment training tax)	3.40%
Voluntary Contribution Permitted	No
State Resources
Employment Development Dept: https://edd.ca.gov
Franchise Tax Board: https://www.ftb.ca.gov
Colorado Wage and Tax Facts
	State Effective 1/1/24	Federal Effective 7/24/09
Colorado Minimum Wage
Minimum Wage	$14.42	$7.25
Minimum Cash Wage (Tipped Employee)	$11.40	$2.13
Maximum Tip Credit	$3.02	$5.12
Youth Minimum Wage	$12.26	$4.25
Colorado State Income Tax
Wage Withholding	4.40%
Supplemental Wage / Bonus Rate	4.40%
Colorado Unemployment Insurance
Maximum 2024 Taxable Earnings (Increased from $20,400 in 2023)	$23,800
Employee 2024 Deduction	None
Employer 2024 Tax Rates (plus support rate and solvency surcharge)	0.64 - 8.68%
Standard 2024 New Employer Rate (includes support rate and solvency surcharge)	3.05%
Voluntary Contribution Permitted	Yes
State Resources
Dept. of Revenue: https://cdor.colorado.gov
Dept. of Labor and Employment: https://cdle.colorado.gov
Connecticut Wage and Tax Facts
	State Effective 1/1/24	Federal Effective 7/24/09
Connecticut Minimum Wage
Minimum Wage	$15.69	$7.25
Minimum Cash Wage (Tipped): Tipped hotel or restaurant employees only	$6.38
Minimum Cash Wage (Tipped): Tipped bartenders only	$8.23
Minimum Cash Wage (Tipped): All other tipped employees	$15.34
Maximum Tip Credit (Tipped): Tipped hotel or restaurant employees only	$9.31
Maximum Tip Credit (Tipped): Minimum Cash Wage: Tipped bartenders only	$7.46
Maximum Tip Credit (Tipped): All other tipped employees	$0.35
Youth Minimum Wage	$13.34	$4.25
Connecticut State Income Tax
Wage Withholding (Net of exemption and credit table)	Wage %
Supplemental Wage / Bonus Rate	No Provision
Connecticut Unemployment Insurance
Maximum 2024 Taxable Earnings (Increased from $15,000 in 2023)	$25,000
Employee 2024 Deduction	None
Employer 2024 Tax Rates(Includes 1.0% fund solvency surtax)	1.1 - 11.0%
Standard 2024 New Employer Rate	2.50%
Voluntary Contribution Permitted	No
State Resources
Dept. of Labor: https://portal.ct.gov/dol
Dept. of Revenue Services: https://portal.ct.gov/drs
Delaware Wage and Tax Facts
	State Effective 1/1/24	Federal Effective 7/24/09
Delaware Minimum Wage
Minimum Wage	$13.25	$7.25
Minimum Cash Wage (Tipped Employee)	$2.23	$2.13
Maximum Tip Credit	$11.02	$5.12
Delaware State Income Tax
Wage Withholding	Tables
Supplemental Wage / Bonus Rate	No Provision
Delaware Unemployment Insurance
Maximum 2024 Taxable Earnings (Unchanged from 2023)	$10,500
Employee 2024 Deduction	None
Employer 2024 Tax Rates (Includes 0.2% supplemental assessment rate)	0.3 - 6.5%
Standard 2024 New Employer Rate	1.20%
Voluntary Contribution Permitted	No
State Resources
Dept. of Labor: https://labor.delaware.gov/divisions/unemployment-insurance/
Division of Revenue: https://revenue.delaware.gov
District of Columbia Wage and Tax Facts
	State Effective 7/1/23	Federal Effective 7/24/09
District of Columbia Minimum Wage
Minimum Wage	$17.00	$7.25
Minimum Cash Wage (Tipped Employee)	$8.00	$2.13
Maximum Tip Credit	$9.00	$5.12
Youth Minimum Wage	$4.25 for the first 90 calendar days. $7.25 after 90 calendar days.	$4.25
District of Columbia State Income Tax
Wage Withholding	Tables
Supplemental Wage / Bonus Rate	No Provision
District of Columbia Unemployment Insurance
Maximum 2023 Taxable Earnings (Unchanged from 2021)	$9,000
Employee 2023 Deduction	None
Employer 2023 Tax Rates (Plus 0.2% administrative funding assessment)	1.9 - 7.4%
Standard 2023 New Employer Rate (Plus 0.2% administrative funding assessment)	2.70%
Voluntary Contribution Permitted	No
State Resources
Dept. of Employment Services: https://does.dc.gov
Office of Tax and Revenue: https://otr.cfo.dc.gov
Florida Wage and Tax Facts	State Effective 9/30/23	Federal Effective 7/24/09
Florida Minimum Wage
Minimum Wage	$12.00	$7.25
Minimum Cash Wage (Tipped Employee)	$8.98	$2.13
Maximum Tip Credit	$3.02	$5.12
Youth Minimum Wage	4.25*	$4.25
Florida State Income Tax
Wage Withholding	None
Supplemental Wage / Bonus Rate	None
Florida Unemployment Insurance
Maximum 2024 Taxable Earnings (Unchanged from 2023)	$7,000
Employee 2024 Deduction	None
Employer 2024 Tax Rates	0.1 - 5.4%
Standard 2024 New Employer Rate	2.70%
Voluntary Contribution Permitted	No
State Resources
Dept. of Revenue: https://floridarevenue.com/Pages/default.aspx
Dept. of Economic Opportunity: https://www.floridajobs.org
Georgia Wage and Tax Facts
	State Effective 9/1/97	Federal Effective 7/24/09
Georgia Minimum Wage
Minimum Wage	5.15*	$7.25
Minimum Cash Wage (Tipped Employee)	No Minimum	$2.13
Maximum Tip Credit	No Maximum	$5.12
Georgia State Income Tax
Wage Withholding	Tables
Supplemental Wage / Bonus Rate	Depends on total annual wages, tax rates range from 2.0% to 5.49%
Georgia Unemployment Insurance
Maximum 2024 Taxable Earnings (Unchanged from 2023)	$9,500
Employee 2024 Deduction	None
Employer 2023 Tax Rates (Includes 0.06% administrative assessment except lowest and highest rates)	0.06 - 8.1%
Standard 2023 New Employer Rate (Includes 0.00% administrative assessment)	2.70%
Voluntary Contribution Permitted	Yes
State Resources
Dept. of Labor: https://dol.georgia.gov
Dept. of Revenue: https://dor.georgia.gov/taxes
Hawaii Wage and Tax Facts
	State Effective 1/1/24	Federal Effective 7/24/09
Hawaii Minimum Wage
Minimum Wage	$14.00	$7.25
Minimum Cash Wage (Tipped Employee)	$12.75	$2.13
Maximum Tip Credit	$1.25	$5.12
Hawaii State Income Tax
Wage Withholding	Tables
Supplemental Wage / Bonus Rate	No Provision
Hawaii Unemployment Insurance
Maximum 2024 Taxable Earnings (increase from $56,700 in 2023)	$59,100
Employee 2024 Deduction	None
Employer 2024 Tax Rates (plus 0.01% E&T surcharge)	0.0 - 5.80%
Standard 2024 New Employer Rate	3.00%
Voluntary Contribution Permitted	No
State Resources
Dept. of Taxation: https://tax.hawaii.gov
Dept. of Labor and Industrial Relations: https://labor.hawaii.gov
Idaho Wage and Tax Facts
	State Effective 7/24/09	Federal Effective 7/24/09
Idaho Minimum Wage
Minimum Wage	$7.25	$7.25
Minimum Cash Wage (Tipped Employee)	$3.35	$2.13
Maximum Tip Credit	$3.90	$5.12
Youth Minimum Wage	$4.25	$4.25
Idaho State Income Tax
Wage Withholding	Tables
Supplemental Wage / Bonus Rate	5.80%
Idaho Unemployment Insurance
Maximum 2024 Taxable Earnings (Increased from $49,900 in 2023)	$53,500
Employee 2024 Deduction	None
Employer 2024 Tax Rates (Includes variable Workforce Development & Admin. Rate)	0.352 - 5.4%
Standard 2024 New Employer Rate (Includes Workforce Development & Admin Rate)	1.23%
Voluntary Contribution Permitted	No
State Resources
Dept. of Labor: https://www.labor.idaho.gov/
State Tax Commission: https://tax.idaho.gov
Illinois Wage and Tax Facts
	State Effective 1/1/24	Federal Effective 7/24/09
Illinois Minimum Wage
Minimum Wage	$14.00	$7.25
Minimum Cash Wage (Tipped Employee)	$8.40	$2.13
Maximum Tip Credit	$5.60	$5.12
Youth Minimum Wage (more than 650 hours)	$14.00
Illinois State Income Tax
Wage Withholding	4.95%
Supplemental Wage / Bonus Rate	4.95%
Illinois Unemployment Insurance
Maximum 2024 Taxable Earnings (increased from $13,271 in 2023)	$13,590
Employee 2024 Deduction	None
Employer 2024 Tax Rates (Includes 0.55% fund-building surtax)	0.850 - 8.650%
Standard 2024 New Employer Rate (Includes 0.55% fund-building surtax)	3.95%
Voluntary Contribution Permitted	No
State Resources
Dept. of Employment Security: https://ides.illinois.gov
Dept. of Revenue: https://tax.illinois.gov/
Indiana Wage and Tax Facts
	State Effective 7/24/09	Federal Effective 7/24/09
Indiana Minimum Wage
Minimum Wage	$7.25	$7.25
Minimum Cash Wage (Tipped Employee)	$2.13	$2.13
Maximum Tip Credit	$5.12	$5.12
Youth Minimum Wage	$4.25	$4.25
Indiana State Income Tax
Wage Withholding	Tables
Supplemental Wage / Bonus Rate	3.23%
Indiana Unemployment Insurance
Maximum 2023 Taxable Earnings (Unchanged from 2022)	$9,500
Employee 2023 Deduction	None
Employer 2023 Tax Rates	0.5 - 7.4%
Standard 2023 New Employer Rate	1.6% or 2.5%
Voluntary Contribution Permitted	Yes
State Resources
Dept. of Revenue: https://www.in.gov/dor/
Dept. of Workforce Development: https://www.in.gov/dwd/
Iowa Wage and Tax Facts
	State Effective 1/1/08	Federal Effective 7/24/09
Iowa Minimum Wage
Minimum Wage	$7.25	$7.25
Minimum Cash Wage (Tipped Employee)	$4.35	$2.13
Maximum Tip Credit	$2.90	$5.12
Iowa State Income Tax
Wage Withholding	Tables
Supplemental Wage / Bonus Rate	5.70%
Iowa Unemployment Insurance
Maximum 2024 Taxable Earnings (Increased from $36,100 in 2023)	$38,200
Employee 2024 Deduction	None
Employer 2024 Tax Rates	0.0 - 7.0%
Standard 2024 New Employer Rate	1.00%
Voluntary Contribution Permitted	No
State Resources
Dept. of Revenue: https://revenue.iowa.gov/
Dept. of Workforce Development: https://workforce.iowa.gov
Kansas Wage and Tax Facts
	State Effective 1/1/10	Federal Effective 7/24/09
Kansas Minimum Wage
Minimum Wage	$7.25	$7.25
Minimum Cash Wage (Tipped Employee)	$2.13	$2.13
Maximum Tip Credit	$5.12	$5.12
Kansas State Income Tax
Wage Withholding	Tables
Supplemental Wage / Bonus Rate	5.00%
Kansas Unemployment Insurance
Maximum 2024 Taxable Earnings (Unchanged from 2023)	$14,000
Employee 2024 Deduction	None
Employer 2024 Tax Rates	0.16 - 6.0%
Standard 2024 New Employer Rate	2.70%
Voluntary Contribution Permitted	Yes
State Resources
Dept. of Labor: https://www.dol.ks.gov
Dept. of Revenue: https://www.ksrevenue.gov
Kentucky Wage and Tax Facts
	State Effective 7/1/09	Federal Effective 7/24/09
Kentucky Minimum Wage
Minimum Wage	$7.25	$7.25
Minimum Cash Wage (Tipped Employee)	$2.13	$2.13
Maximum Tip Credit	$5.12	$5.12
Kentucky State Income Tax
Wage Withholding	4.00%
Supplemental Wage / Bonus Rate	4.00%
Kentucky Unemployment Insurance
Maximum 2024 Taxable Earnings (Increased from $11,100 in 2023)	$11,400
Employee 2024 Deduction	None
Employer 2024 Tax Rates (plus SCUF of 0.075%)	0.225 - 8.925%
Standard 2024 New Employer Rate	2.63%
Voluntary Contribution Permitted	Yes
State Resources
Office of Employment & Training: https://kcc.ky.gov/Pages/index.aspx
Dept. of Revenue: https://revenue.ky.gov/Pages/index.aspx
Louisiana Wage and Tax Facts
	State Effective 7/24/09	Federal Effective 7/24/09
Louisiana Minimum Wage
Minimum Wage	7.25*	$7.25
Minimum Cash Wage (Tipped Employee)	$2.13*	$2.13
Maximum Tip Credit	$5.12*	$5.12
Youth Minimum Wage	$4.25*	$4.25
Louisiana State Income Tax
Wage Withholding	Tables
Supplemental Wage / Bonus Rate	No Provision
Louisiana Unemployment Insurance
Maximum 2023 Taxable Earnings (Unchanged from 2022)	$7,700
Employee 2023 Deduction	None
Employer 2023 Tax Rates (Does not include social charge assessments - Non-Charge (4.23%), Incumbent Worker Training (8.70%), or Integrity (2.16%))	0.09 - 6.2%
Standard 2023 New Employer Rate	1.15 - 2.86%
Voluntary Contribution Permitted	Yes
State Resources
Workforce Commission: https://www.laworks.net
Dept. of Revenue: https://revenue.louisiana.gov/
Maine Wage and Tax Facts
	State Effective 1/1/24	Federal Effective 7/24/09
Maine Minimum Wage
Minimum Wage	$14.15	$7.25
Minimum Cash Wage (Tipped Employee)	$7.08	$2.13
Maximum Tip Credit	$7.07	$5.12
Maine State Income Tax
Wage Withholding	Tables
Supplemental Wage / Bonus Rate	5.00%
Maine Unemployment Insurance
Maximum 2024 Taxable Earnings (Unchanged from 2023)	$12,000
Employee 2024 Deduction	None
Employer 2023 Tax Rates (Includes 0.07% CSFF and 0.15% UPAF)	0.00 - 5.47%
Standard 2023 New Employer Rate (Includes 0.07% CSSF and 0.15% UPAF)	1.97%
Voluntary Contribution Permitted	Yes
State Resources
Dept. of Labor: https://www.maine.gov/labor
Revenue Services: https://www.maine.gov/revenue/
Maryland Wage and Tax Facts
	State Effective 1/1/24	Federal Effective 7/24/09
Maryland Minimum Wage
Minimum Wage	$15.00	$7.25
Minimum Cash Wage (Tipped Employee)	$3.63	$2.13
Maximum Tip Credit	$11.37	$5.12
Youth Minimum Wage	$12.75	$4.25
Maryland State Income Tax
Wage Withholding	Tables
Supplemental Wage / Bonus Rate	MD residents = 5.75% plus County W/H rate
Maryland Unemployment Insurance
Maximum 2024 Taxable Earnings (Unchanged from 2023)	$8,500
Employee 2024 Deduction	None
Employer 2024 Tax Rates	0.30 - 7.50%
Standard 2024 New Employer Rate	2.60%
Voluntary Contribution Permitted	No
State Resources
Comptroller of MD: https://www.marylandtaxes.gov/
Dept. of Labor, Licensing & Regulation: https://www.dllr.state.md.us
Massachusetts Wage and Tax Facts
	State Effective 1/1/23	Federal Effective 7/24/09
Massachusetts Minimum Wage
Minimum Wage	$15.00	$7.25
Minimum Cash Wage (Tipped Employee)	$6.75	$2.13
Maximum Tip Credit	$8.25	$5.12
Massachusetts State Income Tax
Wage Withholding	Tables
Supplemental Wage / Bonus Rate	5.00%
Massachusetts Unemployment Insurance
Maximum 2023 Taxable Earnings (Unchanged from 2022)	$15,000
Employee 2023 Deduction	None
Employer 2023 Tax Rates (Plus 0.37% solvency assessment, 0.056% workforce training fund, and a COVID-19 Recovery Assessment equal to 126.40% of Employer's UI Experience rate)	0.56 - 8.62%
Standard 2022 New Employer Rate (Plus 0.37% solvency assessment, 0.056% workforce training fund surcharge, a COVID-19 Recovery Assessment equal to 126.400% of Employer's UI Experience Rate)	1.45%
Employer Medical Assistance Contribution 2023 Rates (0.12% fourth year of liability; 0.24% fifth year of liability; and 0.34% sixth year or later of liability)	0.12 - 0.34%
Voluntary Contribution Permitted	Yes
Workforce Training Fund 2023 Rate	0.56%
State Resources
Dept. of Revenue: https://www.mass.gov/orgs/massachusetts-department-of-revenue
Labor and Workforce Development: https://www.mass.gov/orgs/executive-office-of-labor-and-workforce-development
Michigan Wage and Tax Facts
	State Effective 1/1/24	Federal Effective 7/24/09
Michigan Minimum Wage
Minimum Wage	$10.33	$7.25
Minimum Cash Wage (Tipped Employee)	$3.93	$2.13
Maximum Tip Credit	$6.40	$5.12
Youth Minimum Wage	$8.78	$4.25
Michigan State Income Tax
Wage Withholding	4.25%
Supplemental Wage / Bonus Rate	4.25%
Michigan Unemployment Insurance
Maximum 2024 Taxable Earnings (Unchanged from $9,500 in 2023)	$9,500 Standard Wage Base
Maximum 2024 Taxable Earnings (Unchanged from 2023)	$9,500 Wage Base for Delinquent Employers
Employee 2024 Deduction	None
Employer 2024 Tax Rates (Plus 1.16% obligation assessment rate)	0.06 - 10.3%
Standard 2024 New Employer Rate (Plus 1.16% obligation assessment rate)	2.70%
Voluntary Contribution Permitted	Yes
State Resources
Dept. of Treasury: https://www.michigan.gov/taxes
Unemployment Insurance Agency: https://www.michigan.gov/leo/bureaus-agencies/uia
Minnesota Wage and Tax Facts
	State Effective 1/1/24	Federal Effective 7/24/09
Minnesota Minimum Wage - If annual gross volume of sales are $500,000 or more:StateFederal
Minimum Wage	$10.85	$7.25
Minimum Cash Wage (Tipped Employee)	$10.85	$2.13
Maximum Tip Credit	None	$5.12
Youth Minimum Wage	$8.85	$4.25
Minnesota State Income Tax
Wage Withholding	Tables
Supplemental Wage / Bonus Rate	6.25%
Minnesota Unemployment Insurance
Maximum 2024 Taxable Earnings (Increased from $40,000 in 2023)	$42,000
Employee 2024 Deduction	None
Employer 2024 Tax Rates (Includes 0.10% base rate)	0.10 - 9.0%
Standard 2024 New Employer Rate (Plus 0.10% base rate)	Industry Average
Voluntary Contribution Permitted	Yes
State Resources
Dept. of Revenue: https://www.revenue.state.mn.us/
Dept. of Employment and Economic Development: https://www.uimn.org/employers
Mississippi Wage and Tax Facts
	State Effective 7/24/09	Federal Effective 7/24/09
Mississippi Minimum Wage
Minimum Wage	$7.25*	$7.25
Minimum Cash Wage (Tipped Employee)	$2.13*	$2.13
Maximum Tip Credit	$5.12*	$5.12
Youth Minimum Wage	$4.25*	$4.25
Mississippi State Income Tax
Wage Withholding	Tables
Supplemental Wage / Bonus Rate	No provision
Mississippi Unemployment Insurance
Maximum 2024 Taxable Earnings (Unchanged from 2023)	$14,000
Employee 2024 Deduction	None
Employer 2024 Tax Rates (Includes 0.2% workforce investment and training contribution rate)	0.2 - 5.6%
Standard 2024 New Employer Rate (New employers pay 1.2% in 1st year, 1.3% in 2nd year and 1.4% in 3rd year; includes 0.2% workforce investment and training contribution rate)	1.2 - 1.4%
Voluntary Contribution Permitted	No
State Resources
Dept. of Employment Security: https://mdes.ms.gov
Dept. of Revenue: https://www.dor.ms.gov
Missouri Wage and Tax Facts
	State Effective 1/1/24	Federal Effective 7/24/09
Missouri Minimum Wage
Minimum Wage	$12.30	$7.25
Minimum Cash Wage (Tipped Employee)	$6.15	$2.13
Maximum Tip Credit	$6.15	$5.12
Missouri State Income Tax
Wage Withholding	Tables
Supplemental Wage / Bonus Rate	4.80%
Missouri Unemployment Insurance
Maximum 2024 Taxable Earnings (Decreased from $10,500 in 2023)	$10,000
Employee 2024 Deduction	None
Employer 2024 Tax Rates	0.0 - 8.1%
Standard 2024 New Employer Rate	2.38%
Voluntary Contribution Permitted	Yes
State Resources
Dept of Labor: https://labor.mo.gov
Dept. of Revenue: https://dor.mo.gov
Montana Wage and Tax Facts
	State Effective 1/1/24	Federal Effective 7/24/09
Montana Minimum Wage - Annual Sales exceed $110,000StateFederal
Minimum Wage	$10.30	$7.25
Minimum Cash Wage (Tipped Employee)	$10.30	$2.13
Maximum Tip Credit	None	$5.12
Montana State Income Tax
Wage Withholding	Tables
Supplemental Wage / Bonus Rate	5.00%
Montana Unemployment Insurance
Maximum 2024 Taxable Earnings (Increased from $40,500 in 2023)	$43,000
Employee 2024 Deduction	None
Employer 2024 Tax Rates (Plus 0.13% or 0.18% administrative fund tax)	0.13 - 6.30%
Standard 2024 New Employer Rate (plus 0.18% administrative fund tax)	1.18 - 2.38%
Voluntary Contribution Permitted	No
State Resources
Dept. of Revenue: https://mtrevenue.gov/
Dept of Labor & Industry: https://uid.dli.mt.gov
Nebraska Wage and Tax Facts
	State Effective 1/1/24	Federal Effective 7/24/09
Nebraska Minimum Wage
Minimum Wage	$12.00	$7.25
Minimum Cash Wage (Tipped Employee)	$2.13	$2.13
Maximum Tip Credit	$9.87	$5.12
Nebraska State Income Tax
Wage Withholding	Tables
Supplemental Wage / Bonus Rate	5.00%
Nebraska Unemployment Insurance
Maximum 2024 Taxable Earnings Category 1-19	$9,000
Maximum 2024 Taxable Earnings Category 20	$24,000
Employee 2024 Deduction	None
Employer 2024 Tax Rates	0.0 - 5.4%
Standard 2024 New Employer Rate	1.25%
Voluntary Contribution Permitted	Yes
State Resources
Dept of Labor: https://dol.nebraska.gov
Dept. of Revenue: https://revenue.nebraska.gov/
Nevada Wage and Tax Facts
	State Effective 7/1/23	Federal Effective 7/24/09
Nevada Minimum Wage
Minimum Wage	$11.25*	$7.25
Minimum Cash Wage (Tipped Employee)	$11.25*	$2.13
Maximum Tip Credit	None	$5.12
Nevada State Income Tax
Wage Withholding	None
Supplemental Wage / Bonus Rate	None
Nevada Unemployment Insurance
Maximum 2024 Taxable Earnings (Increased from 40,600 in 2023)	$40,600
Employee 2024 Deduction	None
Employer 2024 Tax Rates (Includes 0.05% Career Enhancement Program fee)	0.30 - 5.4%
Standard 2024 New Employer Rate (Includes 0.05% Career Enhancement Program fee)	3.00%
Voluntary Contribution Permitted	No
State Resources
Employment Security Division: https://detr.nv.gov/Page/Employment_Security_Division
Dept. of Taxation: https://tax.nv.gov
New Hampshire Wage and Tax Facts
	State Effective 9/1/08	Federal Effective 7/24/09
New Hampshire Minimum Wage
Minimum Wage	$7.25	$7.25
Minimum Cash Wage (Tipped Employee)	$3.26	$2.13
Maximum Tip Credit	$3.99	$5.12
New Hampshire State Income Tax
Wage Withholding	None
Supplemental Wage / Bonus Rate	None
New Hampshire Unemployment Insurance
Maximum 2024 Taxable Earnings (Unchanged from 2024)	$14,000
Employee 2024 Deduction	None
Employer 1Q2024 Tax Rates (Includes variable administrative contribution assessment, up to 0.4%, fund balance reduction, inverse rate surcharge and emergency power surcharge, which are determined quarterly)	0.1 - 7.5%
Standard New Employer Tax Rate Eff 1Qtr2024 (Includes variable administrative contribution assessment, up to 0.4%, fund balance reduction, inverse rate surcharge and emergency power surcharge, which are determined quarterly)	1.70%
Voluntary Contribution Permitted	No
State Resources
Employment Security: https://www.nhes.nh.gov/
Dept. of Revenue Administration: https://www.revenue.nh.gov/
New Jersey Wage and Tax Facts
	State Effective 1/1/24	Federal Effective 7/24/09
New Jersey Minimum Wage
Minimum Wage	$15.13	$7.25
Minimum Cash Wage (Tipped Employee)	$5.26	$2.13
Maximum Tip Credit	$8.87	$5.12
New Jersey State Income Tax
Wage Withholding	Tables
Supplemental Wage / Bonus Rate	No provision, but for taxable wages over $500,000 withhold at 9.9%. For taxable wages over $1,000,000 withhold at 11.8%.
New Jersey Unemployment Insurance
Maximum 2024 Taxable Earnings (Increased from $41,100 in 2023)	$42,300
Employee 2024 Deduction (0.3825%-UI + 0.0425%-Workforce Dev/Supplemental Workforce)	0.43%
Maximum 2024 Employee Deduction	$179.78
Employer FY2024 Tax Rates (Includes Workforce Dev/Supplemental Workforce)	1.2- 7.0%
Standard FY2024 New Employer Rate (3.2828%-UI + 0.1175%-Workforce Dev/Supplemental Workforce)	3.40%
Voluntary Contribution Permitted	Yes
State Resources
Dept. of Labor and Workforce Development: https://www.nj.gov/labor/
Division of Taxation: https://www.nj.gov/treasury/taxation/
New Mexico Wage and Tax Facts
	State Effective 1/1/23	Federal Effective 7/24/09
New Mexico Minimum Wage
Minimum Wage	$12.00	$7.25
Minimum Cash Wage (Tipped Employee)	$3.00	$2.13
Maximum Tip Credit	$9.00	$5.12
Youth Minimum Wage	$12.00	$4.25
New Mexico State Income Tax
Wage Withholding	Tables
Supplemental Wage / Bonus Rate	5.90%
New Mexico Unemployment Insurance
Maximum 2024 Taxable Earnings (Increased from $30,100 in 2023)	$31,700
Employee 2024 Deduction	None
Employer 2024 Tax Rates	0.33 - 6.4%
Standard 2024 New Employer Rate	1.08% or Industry Average, whichever is higher
Voluntary Contribution Permitted	No
Workers Compensation Fee	Employee Assessment - $2.00 per calendar quarter Employer Assessment - $2.30 for each covered employee, per calendar quarter
State Resources
Dept. of Workforce Solutions: https://www.dws.state.nm.us/en-us/
Taxation & Revenue Department: https://www.tax.newmexico.gov
New York Wage and Tax Facts
	State Effective 1/1/24	Federal Effective 7/24/09
New York Minimum Wage
Minimum Wage	15*	$7.25
Minimum Cash Wage (Tipped Food Service Worker)	10*
Maximum Tip Credit (Tipped Food Service Worker)	5*
New York State Income Tax
Wage Withholding	Tables
Supplemental Wage / Bonus Rate	11.70%
New York Unemployment Insurance
Maximum 2024 Taxable Earnings (Increased from $12,300 in 2023)	$12,500
Employee 2024 Deduction	None
Employer 2023 Tax Rates(Includes 0.075% Re-employment Service Fund rate)	2.1 - 9.9%
Standard 2023 New Employer Rate (Includes 0.075% Re-employment Service Fund rate)	4.10%
Voluntary Contribution Permitted	Yes
State Resources
Dept. of Taxation and Finance: https://www.tax.ny.gov
Dept of Labor: https://dol.ny.gov/
North Carolina Wage and Tax Facts
	State Effective 7/24/09	Federal Effective 7/24/09
North Carolina Minimum Wage
Minimum Wage	$7.25	$7.25
Minimum Cash Wage (Tipped Employee)	$2.13	$2.13
Maximum Tip Credit	$5.12	$5.12
North Carolina State Income Tax
Wage Withholding	4.60%
Supplemental Wage / Bonus Rate	4.60%
North Carolina Unemployment Insurance
Maximum 2023 Taxable Earnings (Increased from $28,000 in 2022)	$29,600
Employee 2023 Deduction	None
Employer 2023 Tax Rates	0.06 - 5.76%
Standard 2023 New Employer Rate	1.00%
Voluntary Contribution Permitted	Yes
State Resources
Dept. of Revenue: https://www.ncdor.gov
Division of Employment Security: https://www.des.nc.gov/
North Dakota Wage and Tax Facts
	State Effective 7/24/09	Federal Effective 7/24/09
North Dakota Minimum Wage
Minimum Wage	$7.25	$7.25
Minimum Cash Wage (Tipped Employee)	$4.86	$2.13
Maximum Tip Credit	$2.39	$5.12
North Dakota State Income Tax
Wage Withholding	Tables
Supplemental Wage / Bonus Rate	1.50%
North Dakota Unemployment Insurance
Maximum 2024 Taxable Earnings (Increased from $40,800 in 2023)	$43,800
Employee 2024 Deduction	None
Employer 2024 Tax Rates	0.08 - 9.68%
Standard 2024 New Employer Rate	1.09%
Voluntary Contribution Permitted	Yes
State Resources
State Tax Commissioner: https://www.tax.nd.gov/
Job Service: https://www.jobsnd.com
Ohio Wage and Tax Facts
	State Effective 1/1/24	Federal Effective 7/24/09
Ohio Minimum Wage - Annual Sales exceed $385,000StateFederal
Minimum Wage	$10.45	$7.25
Minimum Cash Wage (Tipped Employee)	$5.25	$2.13
Maximum Tip Credit	$5.20	$5.12
Youth Minimum Wage	$10.45	$4.25
Ohio State Income Tax
Wage Withholding	Tables
Supplemental Wage / Bonus Rate	3.50%
Ohio Unemployment Insurance
Maximum 2024 Taxable Earnings (Unchanged from 2023)	$9,000
Employee 2024 Deduction	None
Employer 2024 Tax Rates	0.4 - 10.10%
Standard 2024 New Employer Rate	2.70%
Voluntary Contribution Permitted	Yes
State Resources
Dept. of Taxation: https://tax.ohio.gov/
Dept. of Job and Family Services: https://jfs.ohio.gov/ouc/uctax
Oklahoma Wage and Tax Facts
	State Effective 7/24/09	Federal Effective 7/24/09
Oklahoma Minimum Wage - Employers with 10 or more full-time employees at any one location or employers with annual gross sales over $100,000 irrespective of number of full-time employeesStateFederal
Minimum Wage	$7.25	$7.25
Minimum Cash Wage (Tipped Employee)	$3.63	$2.13
Maximum Tip Credit	$3.63	$5.12
Youth Minimum Wage	$4.25	$4.25
Oklahoma State Income Tax
Wage Withholding	Tables
Supplemental Wage / Bonus Rate	4.75%
Oklahoma Unemployment Insurance
Maximum 2024 Taxable Earnings (Increased from $25,700 in 2023)	$27,000
Employee 2024 Deduction	None
Employer 2024 Tax Rates	0.3 - 9.2%
Standard 2024 New Employer Rate	1.50%
Voluntary Contribution Permitted	No
State Resources
Tax Commission: https://oklahoma.gov/tax
Employment Security Commission: https://www.ok.gov/oesc/
Oregon Wage and Tax Facts
	State Effective 7/1/23	Federal Effective 7/24/09
Oregon Minimum Wage
Minimum Wage	$14.20*	$7.25
Minimum Cash Wage (Tipped Employee)	$14.20*	$2.13
Maximum Tip Credit	None	$5.12
Oregon State Income Tax
Wage Withholding	Tables
Supplemental Wage / Bonus Rate	8.00%
Statewide Transit Tax - Employee 2024 Deduction	0.1% of taxable wages
Oregon Unemployment Insurance
Maximum 2024 Taxable Earnings (Increased from $50,900 in 2023)	$52,800
Employee 2024 Deduction	None
Employer 2024 Tax Rates (Includes special payroll tax offset: 0.09% for all quarters)	0.9 - 5.4%
Standard 2024 New Employer Rate	2.40%
Voluntary Contribution Permitted	No
Workers' 2024 Benefit Fund Assessment Rates	2.0 cents per hour worked (Employer - 1.0 cents per hour, Employee - 1.0 cents per hour)
State Resources
Employment Dept.: https://www.oregon.gov/EMPLOY/Pages/default.aspx
Dept. of Revenue: https://www.oregon.gov/DOR/Pages/index.aspx
Pennsylvania Wage and Tax Facts
	State Effective 7/24/09	Federal Effective 7/24/09
Pennsylvania Minimum Wage
Minimum Wage	$7.25	$7.25
Minimum Cash Wage (Tipped Employee)	$2.83	$2.13
Maximum Tip Credit (Different rates apply to employers with 10 or less full-time employees, effective 1/1/07)	$4.42
Pennsylvania State Income Tax
Wage Withholding	3.07%
Supplemental Wage / Bonus Rate	3.07%
Pennsylvania Unemployment Insurance
Maximum 2024 Taxable Earnings (Unchanged from 2023)	$10,000
Employee Deduction (Wages paid x 0.07%)	Unlimited
Employer 2024 Tax Rates (Includes 9.2% surcharge, 0.00% interest tax factor and 0.60% additional contribution tax)	1.419 - 10.3734%
Standard 2024 New Employer Rate (Includes 9.2% surcharge)	3.82%
Voluntary Contribution Permitted	Yes
State Resources
Dept. of Labor & Industry: https://www.dli.pa.gov/Pages/default.aspx
Dept. of Revenue: https://www.revenue.pa.gov/Pages/default.aspx
Rhode Island Wage and Tax Facts
	State Effective 1/1/24	Federal Effective 7/24/09
Rhode Island Minimum Wage
Minimum Wage	$14.00	$7.25
Minimum Cash Wage (Tipped Employee)	$3.89	$2.13
Maximum Tip Credit	$10.11	$5.12
Youth Minimum Wage	Various rates	$4.25
Rhode Island State Income Tax
Wage Withholding	Tables
Supplemental Wage / Bonus Rate	5.99%
Rhode Island Unemployment Insurance
Maximum 2024 Taxable Earnings (Increased from $28,200 in 2023)	$29,200 Tier I Employers
Maximum 2024 Taxable Earnings (Increased from $29,700 in 2023)	$30,700 Tier II Employers
Employee 2024 Deduction	None
Employer 2024 Tax Rates	1.1 - 9.7%
Standard 2024 New Employer Rate (Includes 0.21% Job Development Assessment)	1.00%
Voluntary Contribution Permitted	Yes
State Resources
Division of Taxation: https://tax.ri.gov/
Dept. of Labor and Training: https://dlt.ri.gov
South Carolina Wage and Tax Facts
	State Effective 7/24/09	Federal Effective 7/24/09
South Carolina Minimum Wage
Minimum Wage	$7.25*	$7.25
Minimum Cash Wage (Tipped Employee)	$2.13*	$2.13
Maximum Tip Credit	$5.12*	$5.12
Youth Minimum Wage	$4.25*	$4.25
South Carolina State Income Tax
Wage Withholding	Tables
Supplemental Wage / Bonus Rate	6.40%
South Carolina Unemployment Insurance
Maximum 2024 Taxable Earnings (Unchanged from 2023)	$14,000
Employee 2024 Deduction	None
Employer 2024 Tax Rates (Includes 0.0% solvency surcharge and 0.06% contingency assessment)	0.06 - 5.46%
Standard 2024 New Employer Rate (Includes 0.0% solvency surcharge and 0.06% contingency assessment)	0.41%
Voluntary Contribution Permitted	No
State Resources
Dept. of Employment and Workforce: https://dew.sc.gov
Dept. of Revenue: https://dor.sc.gov
South Dakota Wage and Tax Facts
	State Effective 1/1/24	Federal Effective 7/24/09
South Dakota Minimum Wage
Minimum Wage	$11.20	$7.25
Minimum Cash Wage (Tipped Employee)	$5.60	$2.13
Maximum Tip Credit	$5.60	$5.12
Youth Minimum Wage	$11.20*	$4.25
South Dakota State Income Tax
Wage Withholding	None
Supplemental Wage / Bonus Rate	None
South Dakota Unemployment Insurance
Maximum 2024 Taxable Earnings (Unchanged from 2022)	$15,000
Employee 2024 Deduction	None
Employer 2024 Tax Rates (plus 0.55% investment fee)	0.0 - 8.8%
Standard 2024 New Employer Rate (plus 0.55% investment fee)	1.2% - 1st year; 1.0% - 2nd & 3rd years
Voluntary Contribution Permitted	Yes
State Resources
Dept. of Labor & Regulation: https://dlr.sd.gov
Tennessee Wage and Tax Facts
	State Effective 7/24/09	Federal Effective 7/24/09
Tennessee Minimum Wage
Minimum Wage	$7.25*	$7.25
Minimum Cash Wage (Tipped Employee)	$2.13*	$2.13
Maximum Tip Credit	$5.12*	$5.12
Youth Minimum Wage	$4.25*	$4.25
Tennessee State Income Tax
Wage Withholding	None
Supplemental Wage / Bonus Rate	None
Tennessee Unemployment Insurance
Maximum 2023 Taxable Earnings (Unchanged from 2022)	$7,000
Employee 2023 Deduction	None
Employer 2023 Tax Rates	0.01 - 10.0%
Standard FY2023 New Employer Rate	2.70%
Voluntary Contribution Permitted	No
State Resources
Dept. of Labor and Workforce Development: https://www.tn.gov/workforce
Texas Wage and Tax Facts
	State Effective 7/24/09	Federal Effective 7/24/09
Texas Minimum Wage
Minimum Wage	$7.25	$7.25
Minimum Cash Wage (Tipped Employee)	$2.13	$2.13
Maximum Tip Credit	$5.12	$5.12
Youth Minimum Wage	$4.25	$4.25
Texas State Income Tax
Wage Withholding	None
Supplemental Wage / Bonus Rate	None
Texas Unemployment Insurance
Maximum 2024 Taxable Earnings (Unchanged from 2023)	$9,000
Employee 2024 Deduction	None
Employer 2024 Tax Rates (Plus Replenishment Tax Rate 0.15%)	0.25 - 6.25%
Standard 2024 New Employer Rate	2.7% or NAICS Industry Average, whichever is higher
Voluntary Contribution Permitted	Yes
State Resources
Workforce Commission: https://www.twc.texas.gov/
Utah Wage and Tax Facts	State Effective 7/24/09	Federal Effective 7/24/09
Utah Minimum Wage
Minimum Wage	$7.25	$7.25
Minimum Cash Wage (Tipped Employee)	$2.13	$2.13
Maximum Tip Credit	$5.12	$5.12
Youth Minimum Wage	$4.25	$4.25
Utah State Income Tax
Wage Withholding	Tables
Supplemental Wage / Bonus Rate	Tables
Utah Unemployment Insurance
Maximum 2024 Taxable Earnings (Increased from $44,800 in 2023)	$47,000
Employee 2024 Deduction	None
Employer 2024 Tax Rates(Includes 0.003% social cost factor and 1.10% reserve factor)	0.3 - 7.3%
Standard 2024 New Employer Rate	Industry Average
Voluntary Contribution Permitted	No
State Resources
Dept. of Workforce Services: https://jobs.utah.gov
State Tax Commission: https://tax.utah.gov/
Vermont Wage and Tax Facts
	State Effective 1/1/24	Federal Effective 7/24/09
Vermont Minimum Wage
Minimum Wage	$13.67	$7.25
Minimum Cash Wage (Tipped Employee)	$6.84	$2.13
Maximum Tip Credit	$6.83	$5.12
Vermont State Income Tax
Wage Withholding	Tables
Supplemental Wage / Bonus Rate	30% of Federal Tax
Vermont Unemployment Insurance
Maximum 2024 Taxable Earnings (Increased from $13,500 in 2023)	$14,300
Employee 2024 Deduction	None
Employer FY2024 Tax Rates	0.4 - 5.4%
Standard FY2024 New Employer Rate	1.00%
Voluntary Contribution Permitted	No
State Resources
Dept. of Taxes: https://tax.vermont.gov
Dept. of Labor: https://labor.vermont.gov
Virginia Wage and Tax Facts
	State Effective 1/1/23	Federal Effective 7/24/09
Virginia Minimum Wage
Minimum Wage	$12.00	$7.25
Minimum Cash Wage (Tipped Employee)	$2.13	$2.13
Maximum Tip Credit	$9.87	$5.12
Youth Minimum Wage	$4.25	$4.25
Virginia State Income Tax
Wage Withholding	Tables
Supplemental Wage / Bonus Rate	5.75%
Virginia Unemployment Insurance
Maximum 2024 Taxable Earnings (Unchanged from 2023)	$8,000
Employee 2024 Deduction	None
Employer 2024 Tax Rates(Includes 0.0% fund building charge and 0.00% pool cost charge)	0.10 - 6.20%
Standard 2024 New Employer Rate (Includes 0.0% fund building charge and 0.00% pool cost charge)	2.50%
Voluntary Contribution Permitted	No
State Resources
Employment Commission: https://www.vec.virginia.gov
Dept. of Taxation: https://www.tax.virginia.gov
Washington Wage and Tax Facts
	State Effective 1/1/23	Federal Effective 7/24/09
Washington Minimum Wage
Minimum Wage	$16.28	$7.25
Minimum Cash Wage (Tipped Employee)	$16.28	$2.13
Maximum Tip Credit	None	$5.12
Youth Minimum Wage (Employees who are 14 or 15 years old may be paid 85% of the adult minimum wage)	$13.84
Washington State Income Tax
Wage Withholding	None
Supplemental Wage / Bonus Rate	None
Washington Unemployment Insurance
Maximum 2024 Taxable Earnings (Increased from $67,600 in 2023)	$68,500
Employee 2024 Deduction	None
Employer 2024 Tax Rates (Plus 0.03% employment administrative fund and social cost surtaxes)	0.0 - 5.4%
Standard 2024 New Employer Rate	Industry Average
Voluntary Contribution Permitted	Yes
Workers Compensation	Employers and employees each pay half of the Stay At Work rate, the Medical Aid Fund rate and the Supplemental Pension Fund (SPF) rate. For 2024, the SPF rate is $0.1710 per hour ($0.0855 per hour, employee rate & $0.0855per hour, employer rate).
State Resources
Employment Security Dept.: https://esd.wa.gov
West Virginia Wage and Tax Facts
	State Effective 1/1/16	Federal Effective 7/24/09
West Virginia Minimum Wage
Minimum Wage	$8.75	$7.25
Minimum Cash Wage (Tipped Employee)	$2.62	$2.13
Maximum Tip Credit	$6.13	$5.12
Youth Minimum Wage	$6.40	$4.25
West Virginia State Income Tax
Wage Withholding	Tables
Supplemental Wage / Bonus Rate	3.0% - 6.5%
West Virginia Unemployment Insurance
Maximum 2024 Taxable Earnings (Increased from $9,000 in 2023)	$9,521
Employee 2024 Deduction	None
Employer 2024 Tax Rates	1.5 - 8.5%
Standard 2024 New Employer Rate	2.70%
Voluntary Contribution Permitted	Yes
State Resources
Dept. of Revenue: https://revenue.wv.gov/Pages/default.aspx
Workforce West Virginia: https://workforcewv.org
Wisconsin Wage and Tax Facts
	State Effective 7/24/09	Federal Effective 7/24/09
Wisconsin Minimum Wage
Minimum Wage	$7.25	$7.25
Minimum Cash Wage (Tipped Employee)	$2.33	$2.13
Maximum Tip Credit	$4.92	$5.12
Youth Minimum Wage	$5.90	$4.25
Comment	* 2.9% construction industry payrolls under $500,000, 3.05% all other industry payrolls under $500,000, 3.1% construction industry payrolls of $500,000 or more, 3.25% all other industry payrolls of $500,000 or more
Wisconsin State Income Tax
Wage Withholding	Tables
Supplemental Wage / Bonus Rate	3.54%, 4.65%, 5.3% or 7.65%
Wisconsin Unemployment Insurance
Maximum 2024 Taxable Earnings (Unchanged from 2023)	$14,000
Employee 2024 Deduction	None
Employer 2024 Tax Rates (plus solvency surtax of 0.00 - 1.30%)	0.0 - 12.0%
Standard 2024 New Employer Rate	2.9 - 3.25%*
Voluntary Contribution Permitted	Yes
State Resources
Dept. of Revenue: https://www.revenue.wi.gov/Pages/home.aspx
Dept. of Workforce Development: https://dwd.wisconsin.gov
Wyoming Wage and Tax Facts
	State Effective 7/24/09	Federal Effective 7/24/09
Wyoming Minimum Wage
Minimum Wage	$5.15*	$7.25
Minimum Cash Wage (Tipped Employee)	2.13*	$2.13
Maximum Tip Credit	5.12*	$5.12
Youth Minimum Wage	$4.25	$4.25
Wyoming State Income Tax
Wage Withholding	None
Supplemental Wage / Bonus Rate	None
Wyoming Unemployment Insurance
Maximum 2024 Taxable Earnings (Increase from $29,100 in 2023)	$30,900
Employee 2024 Deduction	None
Employer 2024 Tax Rates (Includes 0.13% INEFF/NC adjustment factor and 0.09% Employment Support Fund factor)	0.18 - 8.72%
Standard 2024 New Employer Rates (Includes 0.13% INEFF/NC adjustment factor and 0.09% Employment Support Fund factor)	1.22 - 8.72%
Voluntary Contribution Permitted	No
State Resources
Dept. of Workforce Services: https://dws.wyo.gov/
Voluntary Contribution Permitted	No

Please read our disclaimer here.

The post 2024 State Minimum Wage<br>& Tax Facts appeared first on PrimePay.

What’s more? New HR tools are at the top of many organizations’ lists. 

And it makes sense: From onboarding to attendance tracking to talent management, HR software is designed to streamline your core HR functions and improve the overall employee experience.

Below is a list of the 12 best HR platforms to consider. Whether you’re a small, midsize, or enterprise company, these vendors offer a wide range of features and functionalities to fit your organization’s needs.

1. PrimePay: Best for Companies Seeking a Scalable Solution

PrimePay is HR and payroll on your terms – a plug-and-play solution that gives you options to quickly start with payroll or HR and add time tracking or benefits administration when needed.

Key Features:

• Versatile HCM Platform: PrimePay offers an intelligent, versatile Human Capital Management (HCM) platform catering to small and midsize businesses.
• Comprehensive Services: PrimePay handles a wide range of services, including payroll, HR, ATS, time tracking, and benefits management.
• Efficiency and Simplicity: The system simplifies complex HR processes, aiming for efficiency with a three-step payroll process and configurable HR dashboard.
• Payroll Tax Filing: File federal, state, and local taxes automatically across 50 states. 
• Time Machine Technology: Take your people practices to the next level and contribute to your company’s growth with uniquely accurate data and analytics across time. 
• Drag and Drop Org Chart: An interactive and time-saving way to manage your organization from a people and position perspective.

Pros:

• Customizable and Scalable: Tailored solutions and bundles that grow with the needs of your business.
• HR-Add On: Ability to add and integrate HR software to your existing payroll provider.
• User-Friendly Interface: Focus on simplicity and ease of use, especially within the Benefits Enrollment Wizard, which supplies employee enrollment through an intuitive and guided experience.
• Adaptive Solutions: The platform is designed to fit seamlessly into existing workflows, adapting to the unique needs of each business.
• Strong Customer Support: Noted for exceptional customer service and support.
• Decades of Experience: Leverages 37 years of industry experience.

Cons:

• Advanced Performance Management Capabilities are Pricey: The bundles only include basic performance management capabilities. Organizations with more complex needs must pay for advanced capabilities as an Add-on.
• Premium Support as Add-on: Premium support that Equips your organization with a Technical Account Manager, extended support hours, and proven methodologies to optimize your solution comes at an additional cost.

Client Review:

“I appreciate the self-service option for our employees as it takes the lift off of the HR team to do the tasks that employees can now do themselves. Customizing fields and integrations with other programs has worked so well and allowed us a seamless end-to-end process. We also were able to affect retention by offering benefits such as earned wage access, allowing employees to access their money on their terms. The customer support has been excellent, and the collaboration with the team is amazing. Our account manager is truly an extension of our team and is always available to advise and assist with any issues or questions.”

2. Paycor: Best for Established Businesses with a Complex Payroll

Paycor is a modern, flexible HCM software that allows you to automate routine administrative tasks, mitigate compliance risks, and drive efficiencies across your organization.

Key Features:

• Unified HCM Solution: Paycor offers a comprehensive platform that integrates various aspects of human resources management, including payroll, HR, analytics, and employee data.
• Automation and Efficiency: The platform aims to automate tedious tasks and streamline processes, thereby enhancing operational efficiency.
• Employee Empowerment: Features like self-service allow employees to manage their financial health independently.
• Robust Analytics: Paycor provides detailed analytics and insights to help businesses understand and manage their workforce more effectively.
• Intuitive User Interface: The software is designed to be user-friendly, focusing on simplifying payroll administration and HR processes.

Pros:

• Ease of Use: Many users find the platform easy to navigate and use.
• Effective Payroll Processing: The payroll functionalities are well-received for their smooth operation.
• Customer Support: Several users appreciate the customer service provided.
• Onboarding Capabilities: The onboarding process is streamlined and efficient.

Cons:

• Customer Service Concerns: Some users have reported customer service responsiveness and effectiveness issues.
• Technical and Reporting Issues: There are occasional complaints about technical glitches and difficulties in custom reporting.
• System Performance: A few users need help with the system, especially in handling large amounts of data.

Client Review:

“We’ve recently transitioned to Paycor for our payroll and HR needs. The payroll processing itself is quite smooth and a definite improvement over our old system. However, the platform can be a bit cumbersome, especially with our complex structure of over 700 employees and multiple divisions. We struggle with adequate reporting for separate divisions and find custom reporting to be not as user-friendly as we’d like. The integration between different modules, like scheduling and payroll, is also lacking, which complicates our operations.”

3. Bambee: Best for Small Businesses That Lack an HR Department

Bambee offers an HR and payroll solution tailored for small to midsize businesses. This service provides users various tools and features to streamline HR processes, ensuring businesses stay compliant and efficient.

Key Features:

• Dedicated HR Manager: Personalized HR support to help you create an action plan with customized HR policies and onboarding workflows. 
• 2-Day Direct Deposit Payroll: Efficient and compliant payroll processing.
• Time and Attendance Tracking: Accurate monitoring of employee work hours.
• Performance Management Tools: For effective employee evaluations.
• Document Storage and Retention: Securely store important HR documents to protect your company and employees’ information.

Pros:

• Provides an HR Employee: Small businesses without an HR team note that Bambee’s dedicated HR manager service helps them save costs by not hiring an HR team but allows them to stay compliant and handle any HR concerns.  
• Exceptional Customer Service: Users consistently praise the customer support provided.
• Ideal for Small Businesses: Specifically designed to meet the needs of smaller enterprises.

Cons:

• Interface Issues: Some users reported bugs and a non-intuitive interface.
• Response Time Delays: At times, support response can be slow.
• Limited Free Resources: Certain features and services are pay-per-use.
• Adjustment Challenges: Some users experienced difficulty adapting to the platform.

Client Review:

“Bambee has been a game-changer for our small business. Having a dedicated HR manager and a suite of tools at our fingertips has streamlined our HR processes incredibly. Although the online interface had some initial bugs, the overall functionality and support have made our HR operations much more efficient.”

4. ADP: Best for Companies with a Large Tech Stack

ADP Workforce Now is a comprehensive, cloud-based HR suite tailored for companies of all sizes. Its all-in-one platform combines HR functions such as Human Resource Management, Payroll, Benefits, Talent Management, and Return to Office capabilities.

Key Features:

• All-in-One Platform: A single database managing payroll, HR, time, talent, and benefits.
• Compliance and Security: Industry-leading security and compliance solutions to protect your business.
• Integrated Ecosystem: Large HR ecosystem integrating with third-party solutions.
• Global Payroll Management: Ability to manage payroll across different jurisdictions and borders.
• Data-Driven Decisions: Rich insights from a robust workforce database for informed decision-making.
• Mobile Accessibility: Mobile access for employees and managers for various tasks and insights.

Pros:

• User Interface: Intuitive and easy to navigate, with everything in one place. 
• Virtual Training: ADP offers interactive and independent training modules to help employees and employers navigate and set up the software.
• Data Insights: Users note that information is usable and in real-time, helping them make strategic decisions. 
• Integration: Seamless integration with other systems.

Cons:

• Complexity: Some users find the platform less user-friendly than expected and challenges with its reporting feature. 
• Technical Glitches: Occasional technical issues, such as when the platform updates.
• Customer Service Issues: Inconsistencies in customer support and need for a live chatting feature. 
• Must Use Their Payroll: While you can add on ADP’s HR features, you must use their payroll software.

Client Review:

“Workforce Now is an excellent integrated HR/Payroll platform that has allowed our company to streamline our processes, automate, eliminate paper consumption, increase efficiency, and most importantly, have additional communication streams with our employees. The modules we have were easy to implement with dedicated implementation specialists. We use Workforce now for both HR and Payroll and have multiple modules in place for benefits, recruiting, onboarding, etc.”

5. Fingercheck: Best for Small Businesses with Limited HR Needs

Fingercheck is a versatile and user-friendly solution for small businesses seeking to streamline their HR and payroll processes. Its focus on automation, simplicity, and affordability makes it a strong contender for small businesses in the HR software market.

Key Features:

• Comprehensive Payroll and HR Management: Fingercheck offers a unified platform for managing payroll, scheduling, time tracking, employee benefits, and hiring. This holistic approach aims to simplify complex HR and payroll tasks for small businesses.
• Unlimited Payroll: The platform provides unlimited payroll processing with a single monthly fee, regardless of the frequency of payroll runs.
• Pay On-Demand: Fingercheck offers a feature allowing employees to access their earned wages before payday without additional costs or effort.
• Hourly Time Tracking and Work Scheduling: The software includes innovative time tracking and scheduling functionalities, enabling easy shift management and employee time tracking.
• Hiring and Onboarding: Streamlined digital processes for hiring and onboarding are part of the platform, allowing businesses to manage job postings, applicants, and new hires efficiently.
• People Management and Benefits Administration: Fingercheck simplifies the management of employee data and benefits, including insurance and 401(k) planning.
• Hardware and Integrations: The platform supports no-contact time clocks with advanced features and offers various integrations to enhance user experience​​.

Pros:

• Seamless Automation: Automates essential HR tasks, including payroll, scheduling, and compliance, making it easier for businesses to focus on core activities​​.
• User-Friendly Interface: The platform is designed for ease of use, allowing quick adaptation and efficient management of HR tasks.
• Cost-Effective Solution: Offers a low monthly fee for unlimited payroll processing, making it an affordable option for small businesses.

Cons:

• Limited to Small Businesses: This software may not be suitable for larger organizations with more complex HR and payroll needs.
• Dependence on Digital Literacy: Requires a certain level of digital literacy for effective utilization, which might be challenging for some users.
• Issues with Adjustments and Manual Entries: Limited bulk entry options can be time-consuming.
• Mobile App Concerns: Some users experience difficulties with the mobile application.

Client Review:

“I love how responsive the service is – via chat or call, they’re available within minutes. The platform itself is easy to navigate and operate – it never takes me too long to correct anything or generate a report. I like that you can have the system generate various default reports, but also you can create a custom one to best fit your business needs.”

6. Paychex: Best for Companies with Established Business Needs

Paychex Flex offers an all-encompassing HR solution designed to evolve with your business needs. This platform simplifies complex HR tasks and provides various services such as talent and workforce management, payroll and financial support, employee benefits, and HR outsourcing solutions.

Key Features:

• Talent Management: Streamline your hiring and onboarding process, fostering talent retention and development.
• Payroll and Financial Support: Manage payroll, taxes, and other financial aspects efficiently.
• Employee Benefits: Simplify benefits administration while attracting and retaining top talent.
• PEO and HR Outsourcing: Comprehensive solutions to support the entire employee lifecycle.

Pros:

• Saves Time: You can efficiently execute HR and payroll tasks using their Time and Labor feature.
• Excellent Customer Service: Knowledgeable support team with 24/7 support.
• Accessibility: Besides submitting information and filing payroll online, you can do so via the app or phone. 

Cons:

• Technical and Adjustment Issues: Some users report difficulty adapting to the system.
• Customer Service Concerns: Despite overall positive feedback, some users faced challenges with customer service.
• Limited Report Customization: Restrictions in obtaining detailed, custom reports.
• Complex Pricing: Users note Paychex can be expensive due to multiple add-ons and hidden pricing you can only see once you speak to a sales representative.

Client Review:

“I was familiar with Paychex long before arriving at my current position. Every workplace is different, but wherever Paychex is used, it’s always the same. Paychex has notably provided us with a much easier means of payroll – even for full-time staff! Everyone uses the time clock, and most of the time, we don’t even have to worry.”

7. Rippling: Best for Employee Onboarding

Rippling offers a robust solution for businesses looking to consolidate their HR, IT, and finance operations, especially if they operate globally. 

Key Features:

• Unified Platform: Rippling offers an integrated HR, IT, and finance system. Using an integrated approach means you can manage payroll, benefits, and expenses, and even set up digital tools like Slack or Microsoft 365, all in one place.
• Global Capability: It’s tailored for international teams, allowing you to seamlessly handle various workforce systems scattered across different locations.
• Speedy Onboarding: Remarkably, Rippling can set up a new employee, including payroll and IT needs, in just 90 seconds!

Pros:

• User-Friendly Interface: It’s praised for its intuitive design, making navigation and operations straightforward.
• Saves Time: The automation and integrated systems drastically reduce the manual workload, freeing up time for more critical tasks.
• Versatile: It’s flexible, fitting a range of business sizes and offering various functionalities.

Cons:

• Technical Challenges: Some users have experienced system errors and technical difficulties.
• Customer Service: Feedback indicates that support can be slow, and there’s a lack of immediate contact options like phone support.
• Pricing: The structure can be higher, especially when adding multiple functionalities.

Client Testimonial:

“One of my favorite things about Rippling is how everything an employee needs, whether it’s health benefit related, payroll, time off, or expenses, can be easily accessed from their computer or cell phone. Employees can easily make changes to their 401 k contributions or where their paycheck gets deposited. Instead of having to wait for help from HR, the employee can review their information and make changes on the spot. Having the independence to handle changes themselves makes for a happier employee.”

8. BambooHR: Best for Small to Midsize Companies with a Global Workforce

BambooHR is a complete HR platform that combines employee data, payroll, time, and benefit information. 

Key Features:

• All-in-One HR Solution: BambooHR consolidates employee, payroll, time, and benefits information in one place. This integration ensures data accuracy and security.
• Automation & Electronic Signatures: Key functions and tasks are automated, including electronic signature collection, which enhances efficiency and eco-friendliness.
• Employee Lifecycle Management: It provides tools for each stage of the employee lifecycle, from hiring to performance management, ensuring a smooth HR operation.

Pros:

• User-Friendly Interface: The clean and intuitive design simplifies user interaction.
• Comprehensive HR Features: Includes an award-winning applicant tracking system, payroll, time tracking, and performance management.
• Global Reach: Serves clients in over 150 countries with wide acceptance and adaptability.

Cons:

• Costly Add-Ons: BambooHR only offers two bundles; anything else is an add-on. Reviewers complain that add-on after add-on, everything they need becomes financially unattainable.
• Potential for Integration Issues: Some users reported difficulties integrating BambooHR with other platforms. Updates may sometimes cause minor network delays.
• Reporting Limitations: There are areas where reporting features could be enhanced for deeper insights.

Client Review:

“BambooHR is an amazing platform to run many different elements of your daily operations out of, as well as the bigger picture and less frequent tasks. Rather than having multiple systems, websites or accounts to manage for your company’s hiring, payroll, benefits, etc processes – having somewhere (and with great customer support too) that is an “all in one” has been incredibly helpful for our company’s efficiency.”

9. Gusto: Best for Small Businesses with Full-Time Employees and Independent Contractors

Gusto is a strong choice for small to mid-sized businesses seeking a comprehensive, user-friendly HR and payroll solution. With its strong focus on customer satisfaction and a wide range of features, it seems well-equipped to streamline HR processes and support business growth.

Key Features:

• All-In-One Platform: Gusto is a comprehensive HR solution that combines payroll, benefits, hiring, and management resources in one user-friendly package.
• Competitive Tools: With competitive compensation tools and expert guidance, it aims to empower teams and help businesses thrive.

Pros:

• User-Friendly Interface: Praised by many users for its intuitive design, making navigation and operations smooth.
• Excellent Customer Service: Many users appreciate the responsive and helpful support team.
• Ideal for Small Businesses: Tailored to meet the needs of small businesses with its simplicity and functionality.
• Comprehensive: Offers a range of features, from payroll to benefits management, all in one place.

Cons:

• Issues with Tax Resolution: Some users experienced delays in resolving tax issues.
• Occasional Software Sluggishness: A few users reported slow response times and minor glitches.
• Limitations in Onboarding Process: Feedback suggests the need for improvement in accessing employee information during onboarding.

Client Review:

“I have used Gusto for my small business for more than five years. The customer service is excellent. They look out for their customers by offering add-on products to help and support businesses.”

10. Namely: Best for Companies Seeking Social Features

Namely offers a comprehensive suite of HCM solutions tailored for both small and enterprise-level companies. 

Key Features:

• Engaging Social Features: Inspired by social media, Namely offers a community look and feel where company-wide announcements and employee recognitions live. 
• Managed Payroll and Benefits Services: Simplifies complex payroll and benefits administration tasks, ensuring accuracy and compliance.
• Professional Employer Services: Full-service solutions that take the burden of HR administration off your plate.
• Global Orientation: While primarily focused on the U.S. market, Namely caters to international requirements with some limitations.

Pros:

• User-Friendly Interface: The platform is easy to navigate, making HR tasks more manageable.
• Comprehensive HR Features: Offers a broad range of functionalities for HR management.
• Effective Customer Service: Generally, customer support is responsive and helpful.
• Versatile Payroll Management: Efficient handling of payroll and related tasks.

Cons:

• Integration Issues: Some users reported challenges in integrating Namely with other systems.
• UI Clutter and Complexity: The introduction of new features has led to a cluttered user interface for some.
• Limited Global Functionality: Namely’s features may be restricted to international companies.
• Inconsistencies in Support: Some users experienced inconsistent support quality due to high staff turnover.

Client Review:

“We’ve been using Namely for our HR and payroll needs and have seen a notable improvement in our HR processes. The user-friendly interface and responsive customer service have made managing employee data and payroll much simpler. However, we did encounter some hiccups with system integrations and had to adjust to the evolving UI. Overall, it’s been a positive experience, but there’s room for improvement in certain areas.”

11. Paylocity: Best for Large Companies Focusing on Employee Engagement

Paylocity is an all-in-one solution that serves small, midsize, and enterprise businesses. Paylocity helps people manage daily payroll, benefits, and workforce tasks. 

Key Features:

• All-in-One Platform: Paylocity offers a comprehensive software platform catering to HR and payroll needs, including benefits, talent, and workforce management.
• Cultural Backbone: The technology is supported by a company culture focused on client success and partnership.
• Empowerment and Automation: Tools for regulatory compliance, organizational reporting, and employee self-service options are integral to the platform.
• Customization and Flexibility: Solutions are tailored to meet current needs while paving the path for future growth.

Pros:

• Time-saving features: Allows varying levels of management to have oversight for direct reports and provide feedback.
• Effective integration with other software applications: Users note that it decreases data entry errors.
• Evolving product: Many customers appreciate that the HR platform modernizes over time.

Cons:

• Customer service inconsistencies: Customers note that they have to follow up on service requests. 
• Reporting capabilities could be improved: Some say searching for a report is hard if you don’t know the specific title. 
• Too many/misaligned modules: You may only need some functionalities if you’re a small company. Additionally, modules may not meet your company’s needs, so you may need to purchase additional point solutions. 

Client Review:

“Paylocity helps us maintain our employee data efficiently. It offers a number of features such as customizing reports, ACA tracking, time and labor, benefits, community, onboarding and the like. Their customer service department is amazing, especially my assigned account rep for Benefits. The open enrollment process has been seamless over the last few years.”

12. ClickUp: Best for Companies with Project Management Needs 

ClickUp is a comprehensive, all-in-one productivity platform designed to cater to the diverse needs of HR teams. It stands out with its versatility, offering over 1,000 integrations and many customizable features. 

Key Features:

• Multiple Views: ClickUp offers over 15 ways to visualize workflows, tasks, and projects. Critical views for HR include Table, List, Form, Calendar, and Workload views, each catering to different aspects of HR management.
• Automation: With over 100 automation options, ClickUp simplifies HR processes, allowing teams to focus on people management rather than administrative tasks.
• Dashboards provide high-level overviews of HR KPIs and project milestones, customizable with over 50 widget variations.
• HR Templates: ClickUp offers an HR SOP Template, which is particularly useful for introducing teams to HR processes using an organized and editable format.

Pros:

• Unified Platform: Combines various tools into one dynamic platform, eliminating the need for multiple software solutions.
• Extensive Integrations and Templates: Offers over 1,000 integrations and hundreds of pre-built templates to enhance user experience.
• Robust Support: 24/7 customer support, coupled with learning resources like ClickUp University, webinars, and Help Docs for smooth onboarding.

Cons:

• Not an HR-first platform: Since ClickUp is a project management tool, the platform needs more standard functionality, like payroll and performance management. 

• Lacks Specific Benefits Packages: While ClickUp manages data securely, it only offers specific benefits packages.
• Learning Curve: The platform’s rich feature list might require some adjustment time for new users.

Client Review:

“I’ve been using ClickUp for our HR department, and it’s been a game-changer. The ability to customize views and automate tasks has streamlined our processes, freeing time to focus more on our employees. The learning curve was there, but the wealth of resources made it manageable. It’s an all-encompassing tool that has significantly improved our workflow.”

The post The 12 Best HR Software for 2024 appeared first on PrimePay.

Word of relief is that, although these responsibilities appear daunting, once you understand the necessary tax filings and learn the calculation process, it becomes more manageable. Getting started is commonly the worst part of many things, so to help you navigate this process, we’ve prepared a comprehensive step-by-step guide on how to calculate payroll and payroll taxes.

Here, you can find comprehensive answers to most, if not all of your payroll questions. And if you encounter any challenges or prefer to offload the responsibility of payroll taxes, our software for payroll can handle the heavy lifting for you. But don’t take our word for it. You can explore PrimePay’s client reviews to gain insights from businesses that have partnered with us.

Without further ado, let’s dive right in.

How to Calculate Payroll

In order to begin calculating payroll, you’ll need to have your employees complete the following new employee forms:

• Form W-4: Also known as Employee’s Withholding Certificate, this tax form is used by employees in the United States (U.S.) to determine their income tax withholding. In other words, this form is used to inform their employers about the amount of federal income tax to withhold from their paychecks.
• State W-4 (as applicable): Also known as the Employee’s Withholding Allowance Certificate for State Taxes, this tax form is used by employees in the U.S. to inform their employers about the amount of state income tax to withhold from their paychecks.
• Direct Deposit Authorization Form: If you’re planning to use direct deposit to pay your employees, this form allows individuals to authorize their employer or other payers to deposit their payments directly into their bank account.
  • Employers can require direct deposit in the following states:
    • Alabama
    • Indiana
    • Kansas
    • Kentucky
    • Louisiana
    • Maine
    • Massachusetts
    • Mississippi
    • Missouri
    • Nebraska
    • North Carolina
    • North Dakota
    • Ohio
    • Oklahoma
    • Oregon
    • South Carolina
    • South Dakota
    • Tennessee
    • Texas
    • Wisconsin
• Form I-9: Also known as Employment Eligibility Verification, Form I-9 is a document used in the U.S. to verify the identity and employment authorization of individuals hired for employment. The U.S. Citizenship and Immigration Services (USCIS) requires employers to complete Form I-9 for each employee hired, including citizens and noncitizens.

To stay compliant, it’s imperative that you get familiar with employment tax due dates associated with payroll-related forms and reporting. The bottom line is, staying on top of employment tax due dates is just as imperative as paying your employees on time. So study up on the requirements before you get started to dive right in with confidence.

Resources from the Internal Revenue Service (IRS):

• IRS Tax Calendar 2023
• Understanding Federal Tax Deposits

Now that we’ve got some of the startup forms covered, and your employees set up, you’re ready to run payroll and begin calculations (that is if your business is set up, too, of course).

Part of getting payroll set up is determining the total time employees worked for the period. But please note: this will be different for salaried employees vs. hourly employees.

Total Amount of Time Worked for Salaried Employees

For salaried employees, you’ll need to calculate their total amount of time worked based on their annual salary. Divide their annual salary by the number of pay periods in a year (usually 26 or 52), and then divide that number by the number of work hours in a pay period. This will give you the total amount of time worked for the pay period.

Related: PrimePay’s Salary Paycheck Calculator

Total Amount of Time Worked for Hourly Employees

For hourly employees, you’ll need to calculate their total amount of time worked based on their hours worked for the pay period. This can be done manually, or by using a tool like PrimePay’s Hourly Paycheck Calculator.

If you prefer to do things manually, here are the steps to effectively calculate the total amount of time worked for hourly employees:

• Gather Timekeeping Records: Collect all the timekeeping records for the pay period. This may include timesheets, time clock data, or any other method used to track employee hours.
• Review Work Hours: Thoroughly review the timekeeping records for each employee. Ensure that all hours are accurately recorded, taking into account regular working hours, overtime, breaks, and any other applicable time classifications.
• Calculate Regular Hours: Determine the regular hours worked by each employee. Regular hours typically refer to the standard working hours agreed upon in employment contracts or company policies.
• Identify Overtime Hours: Identify any hours worked by employees that exceed the predetermined threshold for overtime. This threshold is usually based on local labor laws or employment agreements.
• Calculate Overtime Hours: Calculate the total overtime hours for each employee. Overtime hours are typically compensated at a higher rate than regular hours, so accurate calculation is crucial for fair and compliant payroll.
• Account for Time Off: Take into consideration any approved time off, such as vacation days, sick leave, or holidays, and adjust the total hours worked accordingly. Ensure that the appropriate deductions or accruals are applied based on your company’s time-off policies.
• Verify Accuracy: Double-check all calculations to ensure accuracy. Mistakes in calculating hours worked can result in incorrect wages and potential compliance issues. A thorough review helps minimize errors and ensures employees are compensated fairly.

The post How To Calculate Payroll: A Step-by-Step Guide for Small Business Owners appeared first on PrimePay.

Leaders must work together to develop a talent strategy and staffing plan that will enable them to achieve the organization’s goals and objectives. 

For example, leaders might identify the need to hire 10 sales people to reach $4 million in revenue targets. The HR department then creates a plan for talent with open positions that need to be filled. The plan is loaded to an HCM system and the business starts to operate based on the plan at “state zero.”

Traditional human capital management (HCM) systems attempt to manage talent strategies based on requisitions and hiring plans. When an employee fills any given position, that position is forever linked with the first employee who filled it. This model has severe limitations because when an employee leaves, the position essentially leaves with them until it’s recreated and attached to another employee. With this model, the company loses position control, and headcount planning quickly becomes an arduous task.

By comparison, a modern HCM that uses position management software enables organizations to separate people from positions to more effectively conduct business and workforce planning. This approach allows the business to obtain accurate, historical, and real-time views of talent and the overall organizational structure–regardless of who is in a position. With valuable position-based data at their fingertips, HR can partner with finance, operations, and business unit leaders to plan for future talent needs, identify current talent gaps, and budget effectively to meet business needs.

Staff Planning

As part of the ongoing talent strategy process, organizations typically review staffing plans on a quarterly or annual basis. To successfully address position management and budgeting, leaders must review positions and the organizational structure required to get results.

When using an HCM that uses a position management architecture, leaders can view both unfilled and occupied positions over time. They’re able to assess staffing levels, including current and future openings, and project what’s required to meet future plans. Regardless of who currently holds a position, the modern HCM allows recruiting staff to assess current workforce needs based on seasonal fluctuation, as well as filled positions and open positions.

With the right position budgeting software, data doesn’t collapse when employees leave or when they move to another position within the organization. Instead, the data reflects any gaps in the organizational structure–by position. Understanding those gaps in a timely manner empowers the business to put a plan in place to fill open positions as needed.

Budget Planning

Current requisitions or hiring plans offer a one-dimensional view of talent: whom do we need to hire right now? Long-term talent budgets require access to data for current positions, as well as those which are planned. This allows the organization to create a talent budget based on roles needed, not just based on empty seats. Also, historical position management data provides organizations the opportunity to develop workforce budgeting plans for current and future talent, using valuable information based on past data trends. 

Access to this type of real-time and historical information is required to manage and monitor a strategic talent budget effectively. HCMs such as PrimePay HR provide position data so that decision-makers can review important budget-to-actual metrics. When financial and talent plans exist in the same system as your recruiting and HR functions, teams can use integrated data and strategies to work together efficiently.

Your employees are people, and people’s lives are complicated. They get promoted, have kids, retire, and move on. But your HCM shouldn’t require you to adapt based on the ever-changing lives of your people.

With the right HCM software system, HR, Finance and Operations teams can successfully manage by position–rather than person–to:

• Plan the organization’s budget, headcount, and salaries

• Monitor plans vs. actual for headcount and compensation

• Use information from current and past positions to inform future budgets

• Investigate turnover and vacancy rates

PrimePay HR’s architecture allows organizations to access to real-time data that enables strategic human capital management. If you’re interested in how to position budgeting and control to modernize your HR, we’re here to help.

PrimePay HR allows you to manage positions independently from people and frees you from repetitive, time-consuming tasks.

Please read our disclaimer here.

The post Why is Position Management so Important for HCM? appeared first on PrimePay.

Business uncertainty about sales revenue growth skyrocketed from 2.69% in January 2020 to 6.40% in May 2020 and stayed over 4% through July 2022.

As pandemic fears wane, organizations continue to shift in response to unprecedented resignations, talent wars, and fear of an economic crisis. No rulebook exists for navigating a hiring boom in a shrinking economy with inflationary forces and rising interest rates. Ultimately, leaders rely on their existing data while recognizing that the roller coaster of constant change might take them in another direction.

The Great Resignation continues as one in five workers intend to leave their jobs in 2022.

Change continues to challenge organizations, but it’s especially tough on workforce planning professionals who are charged with ensuring companies have the right employees to meet current and future business needs. A flexible workforce allows companies to pivot in response to change, but only if they can harness the right talent. Start with these five best workforce planning practices to prepare your current workforce for the future, no matter what it brings.

1. Redeploy Current Staff

Hiring new employees costs companies twice as much as retaining the staff they already have. But in volatile economic times, executives restructure operations. They focus on automation and often eliminate positions.

When possible, redeploy employees ‌to apply their labor and skills to new roles. Workers can bypass certain training, and companies can keep their existing staff along with all the institutional knowledge they’ve accumulated along the way.

2. Reskill and Upskill

Other employees won’t have needed skills as operations shift. But with worker shortages, it’s not always possible to tap new talent. Besides, having a specialized worker base doesn’t build the flexibility companies need to meet the challenge of ongoing volatility.

Reskilling and upskilling are retention strategies, just like redeployment. But in this case, companies invest in employees while gaining the additional skills they need to fulfill new roles. And why wouldn’t they? It costs $4,129 to hire a new worker, and newcomers will need to acquire company experience that insiders already have.

3. Plan Your Scenarios

Scenario planning involves making roadmaps for hypothetical circumstances, so organizations can implement new plans quickly when a foreseen situation arises. Using extended timelines, companies can forecast and analyze potential future scenarios.

Scenario planning doesn’t require developing tools to predict the future by anticipating economic turmoil or technological breakthroughs. Companies need to implement alternative plans only when they see changes emerging. For instance, in 2020, executives imagined one scenario in which governments contained COVID-19 and another in which outbreaks recurred. The economic difference was $5 trillion in lost U.S. gross domestic product. Scenario planning is successful because companies can develop approaches for multiple potential realities.

4. Use People Analytics

Whether you call it talent, workforce, or people analytics, use the data you have to gain insights into your talent and meet employees’ needs. Organizations collect data around human resources (HR) domains — from training to recruiting, diversity, and retention. Yet, just 34% of organizations use their people analytics tools for workforce planning.

Use predictive people analytics. First, it saves time because HR professionals can quickly recognize and address the best ways to drive profit. It can also improve productivity, keeping workers more engaged. Organizations can make changes that support a resilient workplace as they come to understand what employees need, even in a shifting landscape.

5. Support Your Employees and Build Trust

Economic volatility takes a toll on employees. It’s associated with lower engagement, motivation, and impacted job performance — and that’s when employees stay on the job. Others look for opportunities elsewhere, leaving skill gaps in their wake.

Recognizing how employees perceive a volatile environment ensures HR professionals concentrate on the facets of well-being that matter most. It allows for better communication about operational decisions and more opportunities to facilitate higher employee satisfaction, so companies aren’t scrambling to retain talent while struggling to remain profitable.

Triumph Over Volatility

Getting the right workers with the perfect skills in their ideal roles is a challenge, even in a perfectly predictable world. The difficulty is much greater when companies can’t rely on past data to show them the way. In today’s volatile environment, they need more guidance, better analytics, and more intelligent use of data, along with creative ways to support their people. While building a flexible workforce takes human power, technology is a crucial factor that can bridge the gap between the current workforce and an uncertain future.

We are here to support with efficient, accurate, and cost-effective workforce management solutions.

Schedule a call today

Please read our disclaimer here.

The post Top 5 Workforce Planning Best Practices During Economic Volatility appeared first on PrimePay.