I



I. Purpose

The purpose of the payroll procedures is to ensure each employee’s time is recorded properly and is reported accurately to ensure proper pay.

II. Scope

All HomeStores

III. Responsibility

• Each facility manager is ultimately responsible for implementation of this policy and procedure.

IV. Policy

• All non salaried employees must clock in and out at the beginning and end of their shift as well as for their lunch breaks.

• Employees that work over 6 hours during their shift are required to take a 30 minute lunch. If they do not clock out for their lunch and their time worked exceeds 6 ½ hours their time will be docked 30 minutes for the required lunch break, thus leaving the employee with at least 6 hours of pay. If the employee receives approval from the manager on duty on the Time Adjustment Log excusing them from taking a lunch break, their time will not be docked. Only in special circumstances, may an employee be excused from taking a lunch break.

• It is the employee’s responsibility to complete the Time Adjustment Log for vacation or sick pay that is due to them. This form is to be initialed by their manager prior to the absence time being keyed.

• The manager approving pay for absence time along with the person submitting payroll are responsible for ensuring that employees are not paid absence pay (sick and vacation) in excess of what they have earned as explained in the Turner Furniture Holding Corporation Employee Handbook.

• Employees must sign their employee timecard before they receive their paycheck or pay stub. This should be done as quickly as possible after timecards are printed. This will allow time for the employee to review in case there is an issue.

• The store manager must sign the “approved by” line on each employee timecard. If the store manager is unavailable, the assistant manager or sales manager may sign.

• Payroll records are to be maintained as described at the end of this policy and kept for a minimum of seven years.

V. Procedure

Entering a New Employee into Lathem/PayClock EZ

• Sign in to Lathem/PayClock EZ.

• Click on Setup.

• Click on Employees.

• In the section under the General tab enter the employees name, date of hire, type of employee (full, part time, etc.), and their department. Note: once their employee number is generated and received from the payroll company, enter it in the employee number field.

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• In the section under Schedules enter the following:

o If the employee has a set schedule, enter the schedule in the fixed schedule section.

o If the employee will be away from their work location during the day (ex. Drivers and technicians) check the box next to auto deduct to have their lunches automatically deducted. In the box for work hours to qualify enter 6:30 and for length enter: 30. Note: The auto deduct is only to be used for those that cannot punch in and out for their lunch breaks. All others must clock in and out.

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Daily Tasks

Poll and Update Lathem/PayClock EZ (Not necessary for location with “Touchstation Payclock”

• Sign in to Lathem/PayClock EZ

• Click on Poll Now in the middle of the screen.

• Once the computer is done polling, click on Update Now in the middle of the screen.

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Pull the Missing Punch Report

• Clock on Reports as circled above.

• Click on “Attendance Reports” in the top box.

• Click on “Missing Punch” in the 2nd box.

• Under the date selection, click on the arrow under the “Period” box and choose “Other Period”.

• For the start date choose the first date of the pay period. For the end date, select yesterday’s date.

• Click on the preview button located on the top left.

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• The report will be similar to the one below.

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• Make note of employees missing punches and have them complete the Time Adjustment Log to have their punches corrected.

Correcting Time Punches

• To correct a punch, close report screens.

• Click on timecard icon.

• Click on arrow under the “Timecard” title and select the employee’s whose time needs to be corrected.

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• Click on the punch that is missing and select the icon across the top that has a plus sign with an arrow next to it.

• Punch in the time that needs to be added and verify that the date is correct.

• Click the “OK” button.

Entering Holiday, Sick and Vacation Pay

• Holiday Pay

o If a holiday falls during a pay period, holiday pay is entered for all employees that meet the criteria as detailed in the Turner Furniture Holding Corporation Employee Handbook. To enter the holiday pay, go to Global Edits.

o Select all the employees by clicking on the first employee and while holding the shift key, clicking on the last employee. This will highlight all employees.

o To unselect employees that do not qualify for holiday pay, press the CTRL key and click on the names to unselect. The names of those that do not qualify should not be highlighted.

o Select the date of the holiday pay by pressing the CTRL key and clicking on the holiday date.

o Enter the duration of the time to be paid.

o Click on apply.

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• Sick and Vacation Pay

o Once sick and vacation pay has been authorized to be paid by the manager, verify the employee has the absence time available to be paid.

o Go to Reports/Attendance Reports/Employee Non-Work Time Report.

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o Once it has been determined that the employee is eligible for absence pay according to handbook, exit the report screen.

o Go to timecards and select employee.

o Click on insert/non work time.

o Enter the pay code for the type of absence time being paid, the starting date, and the number of days to be paid, and click on OK.

End of Pay Period Tasks

• Poll Clock and Correct Missing Punches

o First thing Monday morning, update and poll the clock. Note: some locations have a touchstation pay clock which does not require polling.

o Correct all missing punches as described above.

• View employee timecards. Reports/Payroll Reports/Employee Timecard. Click on Preview.

• Check timecards for the following

o Ensure that each employee has clocked in and out for their scheduled days and that if they were absent we have paid them absence time if they had it due. Before keying absence time, ensure the employee still has that time available. Note: If an employee has taken a day off either for personal reasons (no pay) or has exceeded their absence pay, key them for a minute of personal time for that day. This will allow us to track all of their absences.

o Ensure that each employee has clocked out for their lunch break for all the days that they worked over 6 ½ hours. If they have not, go back and dock their time for lunch. Employees that have their lunches auto deducted will have their lunch deducted in the “Meal” column as shown below. Note: If an employee is set up to have their lunch auto deducted and clocks in and out for lunch, their time will be docked twice. Their time will need to be adjusted for that day to ensure they are only docked for one lunch period.

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• Print Period Total Report.

o Once all the timecards are verified for accuracy, click on Reports/Payroll Report/Period Totals. Ensure that the current pay period is correct. Print the report. Ensure the report is in Hundredths as shown below. Note: a question mark next to an employee’s time indicates that they are missing a punch. Their time needs to be corrected and the report needs to be run again before submitting the time.

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• After the report is verified email the report to the payroll department.

• Print and have Manager sign timecards

o Go back to Lathem/PayClock EZ, and print each employee’s timecard by going to Reports/Payroll Report/Employee Timecard.

o Click on Preview and print each card one at a time.

o The store manager will sign the “approved by” line of each timecard. If the store manager is unavailable, the assistant manager or sales manager may sign.

o Keep these to have employees sign once they get their time card.

o Email a copy of each employee’s the time sheet to the payroll department (signed or unsigned).

• Close Period

o After everything has been done, close report screen. Click on Close Period. Click on “apply”. Type “Yes” in the box and click “OK.” This will close the pay period.

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o The system will verify the date of the current period. Type in “Yes” to close the period and click “OK”.

Terminating an Employee from Lathem/PayClock EZ

• When an employee’s employment is terminated, and the employee has received all of their pay for hours worked, they need to be terminated in the Lathem/PayClock EZ system. This will free up the time card to be used by another employee. Do not delete the employee.

• Go to Setup and click on Employees.

• Under the general tab, click on box next to terminated.

• Click on “Save”.

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Organization of Payroll Paperwork

• It is preferred that the information compiled for each pay period be kept in a three-ring binder with the most recent pay period on top. The following information should be kept in order as follows:

o The spread sheet sent to the payroll company.

o Period Totals report total for entire pay period (not weekly totals).

o Time adjustment log.

o Signed time sheet for each employee, unless they are a salaried employee.

o Any other supporting documentation for the pay period.

o Monthly Commission Paperwork to include:

▪ Commission Due Report printed from Ashley system.

▪ Commission spreadsheet as submitted to payroll.

• Payroll records are to be kept for a minimum of seven years.

Best Practice: When processing payroll, check prior pay period paperwork to ensure all timecards have been signed by employee and store manager and work is in proper order. [pic]

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For confidentiality purposes, employee names have been covered.

For confidentiality purposes, employee names have been covered.

For confidentiality purposes, employee names have been covered.

Doe, John

Doe, John

Doe, John

Doe, John

For confidentiality purposes, employee names have been covered.

Doe, John

Doe, John

Doe, John

Doe, John

For confidentiality purposes, employee names have been covered.

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