4 Tips for Employer Paid Time-Off Plans

4 Tips for Employer Paid Time-Off Plans

The Importance of Paid Time off Plans and How to Implement Them

Employers know that employees need breaks from work occasionally. It is for that reason that organizations offer their employees paid time off (PTO). They offer PTO in the form of vacation days, holidays, sick leave and personal leave.

 

Paid Time-Off Plans

Companies adopt various types of paid time off plans. Some companies offer their employees a specific number of days for each type of PTO while others give a set amount of paid days off. In that case, employees can use the days off for many reasons. It is important for organizations to choose a plan that favors them.

What is paid time off?

Paid time off defines any time an employee does not works and gets paid a regular rate, fixed rate or prorated amount. Employers provide paid time off to employees to give them time to attend to non-work related issues. Despite the fact that time payoffs are a little bit expensive to companies, they still offer them to provide friendly terms to their employees as well as attract and retain employees.

How PTO works

Employees must get approval in advance to allow them to take planned days off, just like with the traditional vacation policies. Some employers have rights to deny or reschedule leaves or off days depending on their business needs. Most PTO plans do not require an employee to state the reason for taking leave. That is why most PTO plans do not demand medical verification when an employee takes a day off for illness.

 

Advantages of Paid Time Off

Advantages of PTO

The system is easy to implement especially for employers because they do not have to deal with many excuses from employees. An organization just needs to track a total number of days off. It saves on time used in following up employees and listening to their many excuses.

Another benefit is that employees find it flexible, and they like the freedom it comes with. That is because they are not expected to justify the need to take a leave or a day off. That means that they will not misrepresent reasons for being absent, and they will give notice in advance. Additionally, workers who do not use sick days will find time to meet their personal needs.

Four things to consider in determining PTO plan

As an organization, you need to put certain factors into consideration when coming up with an effective PTO plan.

Attendance patterns and costs

Consider the attendance patterns of your employees as well as the expenses. If your employees miss days for reasons not under sick leave policies and separate vacation like elder care, then your organization needs a PTO plan. In such a case, a PTO plan will be of great help because it will take care of various reasons for days off.

Organization culture and attitudes

The culture of an organization largely determines how well a PTO plan will function. If your organization is flexible and it delegates powers to employees to make decisions, then the method will work correctly. PTO plan does not operate well with agencies where managers retain tight control because managers will feel uncomfortable with the plans so they will resist them.

 

FMLA compliance

FMLA compliance

Compliance is importance when it comes to PTO plans. Therefore, if your company has problems tracking FMLA absences a PTO plan will make the situation worse. Businesses that have such problems in most cases are those where supervisors find it difficult to identify the absences that are important or which absences to count.

State laws on pay at termination

Organizations are required to comply with state laws. Some organizations have workers in countries, and they need payment of vacations they have not used at completion. If you are unwilling to pay for that, then using a PTO plan is not advisable.

 

Four tips

Four tips for implementing PTO plans

Most employers who adopt PTO plans find them favorable due to their flexibility. However, the process of transition from traditional plans to PTO plans needs to be done systematically to achieve results. If your company wants to switch, here are tips to make the transition swift and increase chances of success.

The organization needs to determine absences that will be covered by the plan. Additionally, companies should also set the total number of days. It goes a long way in making everything clear and outline everything.

An organization also needs to clarify how to handle unused days. Employees can use remaining days as sick days or have them carried forward and paid at termination. Make sure you explain the issue to avoid confusion.

It is important to come up with a procedure for identifying and certifying absences that meet FMLA policies. Most importantly, organizations need to educate their employees and supervisors on how PTO plans to function as well as their advantages.

Providing workers with paid holidays are essential, and the costs are not high for companies. When coming up with the program, you need to balance what you can afford and productivity loss as well as the compensation your competitors are offering.

 

 

Article provided by Neches FCU, an Equal Employment Opportunity Employer.
Neches FCU is a leading Texas credit union, with a highly respected team of professionals ready to provide service to their 45,000+ members. Daily, their core goal of “Ultimate Member Satisfaction” becomes the imperative for every staff member. They are respected for a very positive work atmosphere, where all clients are known by name.

Improve Your Accounts Receivables by Following 3 Experts

Improve Your Billing and Accounts Receivables by Following 3 Experts

 

Improve Accounts Receivable

Improve Accounts Receivable

Agencies and departments keep improving their billing and accounts receivable procedures in order to make them more efficient to get all the payments needed to respond to the obligations that might appear every day. The improvement in time and place for transactions has become a “must” in some industries in order to maximize the return of both time, as well as the investment made. The first thing one thinks when we talk in improving billing and accounts is always in terms of reducing bureaucracy and manual labor that consumes a lot of time, in this article it was possible to gather the opinions from three experts in billing and accounts, we will see their perspective concerning this matter.

Early payments, an alternative for customers and companies

 

Early payments

Early payments

According to Dawn Brolin, the CPA, CGMA of Powerful Accounting, the best solution for companies is to encourage customers in terms of work practices. That way it will improve the work dynamic and delays in payment will surely become less often contributing for a healthier job relationship. It will be a win-win situation, you will save money time and problems, while the customer will save problems, time and will have at his disposal the best quality service provided by a company.

 

Good Payment History

Good Payment History

Begin by showing all your company’s traits while giving the client a letter which has all of the expectations in terms of services, regarding the project or maybe training needs. The next aspect to have concerns about in on the payment form, for this one it’s needed an authorization to be specified in a contracted. If this contract states that the payment will be withdrew after the first job assignment and the following payments will be made after the first deposit, you’ll have to discuss it with the client. However, always remember the client that an early payment is an assurance of quality of work.

How can early payment be an incentive? Simply if you offer some type of discount for paying earlier or to give a bonus for future assignments that can be a plus in terms of taxes. However, you also have the possibility to use some reverse psychology in terms of incentives, remind your clients that paying later can mean losses in terms of penalty or increase in interests.

Dealing with late payments

 

Late payments

Late payments

Shayna Chapman, CPA, CITP and CGMA for Shaynaco gave her feedback regarding the work with clients in her activity. This is a perspective that has hard negotiation on it, because if you have your activity, you need to have money to maintain it, otherwise, the losses will be yours. The sentence “a good customer is a paying customer” is well enforced in this approach.

Set the profile of your client and the way they work and pay, remember that their payment calendar can be quite different from yours, that way you’ll be able to adjust your activities to fit in terms of time. You have to previously decide the form of payment and agree it with the customer, that way you’ll be protecting yourself in terms of payment and even in a legal way. If you want to offer discounts or bonuses, make it in a way that doesn’t hurt your own activity, if you start working for free, most likely you’ll go bankrupt, always protect your own bank so that your business can prosper.

The most important advices however, is to keep track of the client’s activity and payment. If the client keeps getting late on the payment, maybe it’s not worth to keep them, since it’s giving more losses than benefits. Finally, provide billing at the arranged timings, if you show competence, most likely the client will pay front up to match your effort.

Technology and third parties are an important part of billing

 

payment technology

payment technology

Randy Johnston from the K2e gave valuable insight in terms of billing and the most proactive one. He clearly states that the billing should take the minimum amount of time from the company in order for the company to focus on improving their levels of efficiency in the activity.

In order to gain time to focus on the activity and not on the billing, there are two available options: Third party companies and the use of specific software. You need to check the type of revenue your company makes and compare with the expense you’ll have to make, if you have inside your company an alternative to work with software, you’ll be saving time and money, but if your billing services inside the company take too long, probably you’ll need outside service.

Finally, simply define the billing format that your client will require. This is an easier approach, since you don’t need to specialize in billing and you can focus in your own work. The only thing you need to be aware of is the expense you’ll be making in investing in this solution and making it according to your level of revenues.

Hi, I’m a Tax Professional based in New Jersey.

I love to cover Tax and Accounting matters. I’m a business owner deep down, and admire men and women who would like to create business enterprises and promote the economy. I hope you enjoyed my column. Please don’t hesitate to send me comments.

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