Payroll Continuity

Since payroll is a mission-critical activity, you have to ensure that there is no interruption in it even during a crisis or disaster. Is payroll continuity part of your business continuity plan? If not, it should be. This week's articles provide information on what to do and how. We want to thank Cori Friedrich of Citizens Equity First Credit Union for suggesting this topic.

SHRM takes a look at pay and benefit issues in a disaster. (Item #1)   Payroll should be high on the list of preparedness and continuity planning for a small business owner. (Item #2)   In a disaster, an employee's need to access their pay is greater than ever. (Item #3)  

Issuing employee paychecks on time and accurately are two of the most important tasks a business must handle regularly; are you prepared to do so in a disaster? (Item #4)   To pay employees, the company must back up its payroll software and data before disaster takes down the computer system or renders it inaccessible. (Item #5)   Employees can't volunteer to work without pay; if the duties they perform benefit the company and are regularly performed by employees, the duties are work and require compensation. (Item #6)  

As always, we look forward to hearing your comments & insights regarding business continuity. If you have a topic you'd like us to cover, email me at [email protected].

Bob Mellinger, President
Attainium Corp

1. When Disasters Strike: Pay, Leave and Related Issues

In the wake of Hurricane Sandy and the devastation it brought, the following is an all-too timely reminder of pay and benefits issues that HR managers should bear in mind. Although it is practically impossible to be fully prepared for any natural disaster, it is important for employers to be aware of employment laws that may be implicated in such situations.
http://www.shrm.org/hrdisciplines/compensation/articles/pages/disasters.aspx

2. Payroll Continuity

Payroll is often an overlooked area of business continuity. Small business owners may assume that their employees will continue to work without pay during or after a disaster out of a sense of loyalty or altruism. This assumption is often proven to be unrealistic. This doesn't imply that employees are not loyal to their employer, but is offered as a reminder that when disaster strikes, most employees will consider the needs of their families as their top priority.
https://www.washington.edu/emergency/payroll

3. Payroll's Role in Corporate Disaster Preparedness Planning

Does your business have a disaster preparedness plan? Do all employees know what it is? There are many resources on the internet to help a company build a disaster recovery plan. One such resource is available at Ready.Gov. Most of the resources focus on the business in general, but what about payroll? Has your payroll department contributed to the corporate disaster preparedness plan? Payroll departments have a key role in corporate disaster planning, although most do not realize it until it is too late.
http://www.articlesnatch.com/Article/Payroll-s-Role-In-Corporate-Disaster-Preparedness-Planning/1193977

4. Disaster Planning - Putting a Payroll Backup Plan in Place

Over the years, I have worked with thousands of companies (and done my fair share of payroll processing tasks, as well) and one of the things that confuses me most is the fact that very few companies have a backup plan for getting money into their employee's hands in the event of a disaster or other emergency.
http://www.sleeter.com/blog/2012/12/quickbooks-payroll-backup-plan/

5. How to Pay Employees during a Disaster

Even if a business and its computer systems shut down because of fire, flood or earthquake, it still has to get the paychecks out to employees. If disaster closes a company midweek, hourly workers are entitled to pay for time worked. Workers who are required to stay on call during the disaster are paid even if they are not working. Salaried workers are entitled to a full week's pay if they work any of the week.
http://work.chron.com/pay-employees-during-disaster-3239.html

6. HR Disaster Preparedness Lessons Learned from Hurricane Sandy

The one lesson learned by HR personnel in responding to Sandy's fury is that natural disaster response is best managed if risk assessment, policies and procedures are put into place well in advance of any disaster. Take time now to conduct a risk assessment and ensure your company will be ready when disaster strikes.
http://www.employmentlawpostblog.com/2012/11/28/hr-disaster-preparedness-lessons-learned-from-hurricane-sandy/