Accounting, Payroll & Pension Issues/Year convert from arrears to on pay

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Expert: - 12/16/2010


Question
What advice/approach is appropriate when arrears personnel will be converted to on-time pay...leaving a them a week short for 1st pay of conversion?  How much notice time must be given...etc.

Answer
First of all I like to give plenty of notice.  Different states have different rules but my rule of thumb is 90 days. That would cover the requirement in most all states.

I try to do it before a holiday when there is a paid holiday to make the week shorter.

I also offer to allow them to use PTO or vacation pay even though they will eventually be paid for the week. It just means I allow them to sell back part of their vacation or PTO time to cover the weeks wages.

Shirley

Accounting, Payroll & Pension Issues

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Shirley McAllister, CPP, PHR

Expertise

I can answer payroll questions, payroll tax questions, 401K questions. No stock option questions please and I have some knowledge of other pensions but am most familiar with the 401K pension. I can answer U.S.and Canada payroll questions proficiently and have a good general knowledge of UK and South Africa and some knowledge of Australia and New Zealand Payroll procedures. Please do not ask me homework questions I do not have time to answer them.

Experience

25 years with an international company in the Human Resources, Payroll and Payroll Tax areas.

Organizations
SHRM, APA, I.O.M.A.

Publications
I.O.M.A. and BNA

Education/Credentials
P.H.R., C.P.P., Canadian Payroll Administrator, Successfully passed APA class on UK Payroll Administration. Boise State University Human Resource Certification

Awards and Honors
APA Hotline Citation of Merit for last 8 years.

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