The outbreak of the new coronavirus has resulted in an economic downturn. Even the economic activity across the world as factories shutdown bring manufacturing to a halt. Businesses are experiencing challenges due to the reeling of the global markets and locked-at-home employees. That is why businesses must create new tactics to conform to such challenges.
The government, businesses, and its dependents have to go through a cycle of adjustments to keep the economy fueled. The government is implementing new business measures to support the economy and its citizens. On the other hand, businesses need to adapt their systems and structures with the changing laws.
As such, companies need to focus on HR and payroll issues in order to prioritize the best interests of their staff. It is crucial at such a time of crisis for companies to ensure that their employees are paid the right amount at the right time. This helps maintain their trust and motivation. Now, companies, whether big or small, will come under great pressure to get it right.
1. Evolving Business Laws
Companies need to be updated with the evolving government legislation. They should also rapidly integrate the new legislation into their policies. This adds complexity to the nature of payroll management, especially for multinational companies.
There will be changes relating to sick pay, overtime, and leave. While the situation evolves, it is best to have clear communication and processes among employees and third parties to manage miscommunication and uncertainty.
The United Kingdom government is making a move to implement statutory sick pay (SSP) to COVID-19-related issues. The SSP is exclusive for companies with less than 250 employees. Moreover, they changed the legislation to enable SSP payment from day one rather than day four. With that being said, companies need to adapt to the changes made by the government. Updating and adjusting their payroll system is a must in this situation.
In terms of payroll taxes, states like Queensland are implementing payroll tax waiver. Each plan contains different specifics, such as payroll amounts and deferral time. It is of utmost importance that companies pay attention to new rules and apply them to their payroll system.
2. The Current Situation
Sometimes, companies go beyond legal requirements; they adopt voluntary changes to the policies to ease the financial burden of their staff. This helps maintain a good relationship between the company and employees. It also establishes a good employer reputation. Such voluntary policies include paid leave to support the employee’s self-isolation and caring for relatives.
Furthermore, the companies should also consider the increase in employee leave and the overtime policy. They should also explore the adjustments of paid and unpaid holidays. Complying with these requirements should reflect on the policies and internal working practices to keep everything in sync.
3. Managing the Changes
With the surprising amount of changes, companies should ensure that their new policies are aligned with the government’s laws. It must fall within the limit of local regulations. They should expect the adjustment of workflows and processes in order to deal with filing and processing. Additionally, reducing the risk of late payment needs to be on top priority. If in case the situation is unavoidable, flag the delays as early as possible.
Workflow analysis comes in handy to manage these changes. The first step is to identify the processes that are important in paying employees and filing tax obligations. Ask whether you would be able to access all the systems remotely.
Companies should also consider the lack of resources. There needs to be enough back-up staff if it happens. They also have to inform the third parties and partners regularly regarding the changes in the ways of working and possible payment delays.
Lastly, clear communication should always be established between the company and the employees. Companies should always keep in mind that their policies are in place to guide their staff through evolving laws.