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Topic: Payroll Holds
Messages (4) Visitors (1495)klockhartmac Member since 01/18/2012 |
Payroll Holds
01/18/2012 / 11:41 am #1
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I am new to Human Resources, so in essence I am learning by doing. The Owner wants to implement a Policy of Holding the First Weeks Pay (40 hours) . I am certain to cover the company this needs to be implemented in the Policies and Procedures Manual. I am also thinking the Employee (New Hires) will need to sign and acknowledgment as well. My main question is, can this actually be done? I am certain going back and trying to implement this across the board with current employees would not be legal, but what about New Hires? |
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rafael.sora Member since 10/12/2012 |
Re: Payroll Holds
10/17/2012 / 6:01 am #2
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Are you from USA? Because what you're saying is in fact a legal question, and I only can say what are the roul in Europe. |
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rafael.sora Member since 10/12/2012 |
Re: Payroll Holds
10/17/2012 / 6:01 am #3
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werts.linda Member since 03/28/2012 |
Re: Payroll Holds
11/01/2012 / 9:33 pm #4
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If I understand your question correctly, it's a matter of semantics. No, you cannot "hold" a week's wages, but you can pay in arrears which in effect is nearly the same thing. Paying in arrears means having a payroll cut off that allows you to process based on what you know the employee worked. For example, the pay period ends on Saturday and payday is the following Friday. This provides time to gather hours actually worked and pay based on what is known instead of paying based on what is forecasted to be worked. When you say hold 40 hours pay, it brings visions of never paying the employee for their first 40 hours of employment until the leave the company which would not be legal since each state has a limit on how many days can elapse between when an employee works and when you must compensate them for that work. </br> |
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