HCM Insights October 2021

Upcoming Holiday

Veterans Day

We are grateful to those who have served our country throughout all generations. The upcoming Veterans Day Holiday falls on Thursday, November 11, 2021. While CBIZ HCM offices will be open this day, this is a Federal Reserve Bank Holiday, so payroll draft dates may need to be adjusted.

Important Payroll Deadlines

Thanksgiving

In observance of the Thanksgiving Holiday, CBIZ HCM offices will be closed on Thursday, November 25, 2021, and Friday, November 26, 2021. Also, Thursday, November 25, 2021, is a Federal Reserve Bank Holiday, which means payroll draft dates may need to be adjusted.

Important Payroll Deadlines

As always, your CBIZ HCM team is here to help should you have questions. We appreciate your continued partnership, and we wish you and your business the best of health. Please contact your payroll services team if you have any questions.

Payroll Prepaid Card Fraud

You can never be too careful when it comes to taking steps to protect your employees’ payroll funds. That is why we encourage you to always verify payroll changes directly with an employee before making the change in your system. Confirming changes directly with the employee can help protect their funds against some commonplace direct deposit payroll schemes.

Among the many scams, employers may encounter is a prepaid debit card ploy. When hackers use this tactic they send an email to a payroll professional from the employees' email (usually personal email) requesting that the direct deposit is changed to deposit funds onto a prepaid card. For the tactic to work, the payroll professional has to change the direct deposit information in the system without verifying the change with the employee which can result in losses to the employee or to your organization.

Stay Ahead of the Hacker

• Verbally confirm ALL direct deposit changes with the employee requesting the change.
• Speak to employees face to face or by phone. 
• When calling an employee, use a phone number YOU have on file, not a phone number listed in the email you received requesting the change.

Some Other Things to Consider

7 Steps to Help You Prepare for Year-End

We’ve provided a few tips, tricks, and reminders as you prepare for year-end.

Step 1: Review workers’ wages and benefits - Check the wage and benefit information for each employee to make sure you can account for all the benefits you paid them throughout the year, leading up to the final paycheck. If any benefits are not accounted for, add these to their last 2021 paycheck.

Step 2: Review employees’ and contractors’ personal information - Make sure you have the correct names, addresses, and Social Security Numbers for every employee and contractor you paid in 2021. For independent contractors, you will also need to check that their Tax Identification Numbers are correct, and ensure payments are recorded for any bills that need to be included on Form 1099-MISC.

Step 3: Update employee tax profiles for 2022 - Remind your employees to review their withholding allowances for federal and state income taxes. Have them complete a new Form W-4 (or state equivalent) by January 1, 2022, if their personal information or allowances have changed. 

Do not forget: W-2s must also be sent to any employees you paid in 2021 who are no longer working for you.

Step 4: Bring everything together with reconciliation - If you pay your employees by check, perform a payroll bank reconciliation through December 31, 2021. This reconciliation should include identifying outstanding checks and comparing state and federal payroll tax withdrawals from your bank account to the amounts on your tax liability records.

Step 5: Make sure your employer information is up-to-date - Review your business’ legal name, address, and Employer Identification Number to ensure they are correct.

Step 6: Confirm your tax profile for 2022 - Deposit requirements can change each year, so make sure you have the correct deposit information as government agencies do not notify CBIZ of these changes.

Step 7: Verify employer tax rates for 2022 - Check your tax rates for state unemployment and disability insurance. If you have received a letter from any government agency with a new tax rate, please forward these to CBIZ.

Attracting Top Talent

Now, more than ever, prospective employees are looking for credible companies, which means your employer brand is critical to winning top candidates and retaining suitable employees. Having a solid employer brand helps your organization stand out from the competition. Your brand should tell an authentic story about what it’s like to be a part of the workplace and how employees collectively work toward the company’s mission.

Effectively telling your story can help you attract candidates who match your company culture. LinkedIn research found that a strong employer brand reduces turnover by 28% and cost-per-hire by 50%. Additionally, LinkedIn explored the benefits of investing in employer brand. The research shows that organizations with a strong reputation often spend less on recruiting and retention efforts. Additionally, when an employer brand is strong, recruiters experience less friction when introducing the organization to top talent and during the offer stage. However, like most aspects of the workplace, the needs and desires of employees and candidates change. Organizations who ensure their employer brand evolves to meet these changing wants and needs can continue to boost their recruiting and retention efforts.

Ways to Prepare for Fall Time Change

Fall Back

Daylight Saving Time ends Sunday, November 7, 2021, which means it is almost time to move your clocks back one hour. Fortunately, modern technology allows many of our devices, such as our cell phones, to update automatically.

If your organization has a CBIZ Time and Labor Management solution, your time clocks should also automatically adjust to the time change. But there are still some additional steps you should consider when the time changes.

Review Employee Schedules

If you have third-shift employees, review their schedules. If those employees are normally scheduled for eight hours, they may be working nine hours since clocks will be moved back one hour. If so, companies may want to adjust schedules accordingly. Do this as soon as possible to ensure employees aren’t caught off guard.

Establish a Policy or Standard

Determine how to handle employees with hours impacted by the ending of daylight-saving time. Whatever you decide, be consistent, so there are no surprises.

Communicate Changes That Impact Employees

Remind employees about the time change and any related schedule changes. Alert them in advance if the ending of daylight-saving time will affect their work hours. Communicate these changes to employees. Not only should this reduce the number of questions you get regarding schedules, but it could also save you and your employees’ time and frustration.

Check Time Clocks

Check your time clocks to make sure that the time reflects the end of Daylight-Saving Time*. Also, supervisors and managers should review punches to ensure each employee's time is properly recorded. (*Timesheets and time clocks through CBIZ's Time and Labor Management solutions automatically account for the end of Daylight-Saving Time, unless exceptions were requested upon implementation. If you have any questions about your time tracking solution, please contact us.)

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The information contained in this HCM Insights is not intended to be legal, accounting, or other professional advice, nor are these comments directed to specific situations. This information is provided as general guidance and may be affected by changes in law or regulation. This information is not intended to replace or substitute for accounting or other professional advice. You must consult your own attorney or tax advisor for assistance in specific situations. This information is provided as-is, with no warranties of any kind. CBIZ shall not be liable for any damages whatsoever in connection with its use and assumes no obligation to inform the reader of any changes in laws or other factors that could affect the information contained herein.