Fusion Newsletter Article: Is Payroll Deduct in Your Future? Questions You Need to Ask Before You Start Offering This at Your Facility

Is Payroll Deduct in Your Future? Questions You Need to Ask Before You Start Offering This at Your Facility

Is payroll deduct in your future? Questions you need to ask before you start offering this at your facility.In this day and age of cashless transactions, payroll deduct is an important part of the services that the healthcare foodservice industry can offer its staff and employees. If you can reduce the amount of cash flowing in and out of your facility, the better off you are. This type of payment method reduces the human error factor and the loss that occurs from dishonesty, to cite a few reasons. Even though offering payroll deduct would reduce the cash changing hands and actually increase revenue, offering payroll deduction options can present some challenges.

Deciding to implement a payroll deduction system takes time and preparation to develop the procedures that will ensure that employees don’t "spend" away their paychecks. One of the first steps is to purchase a POS system that can handle payroll deduct transactions. In addition, you also want to make sure that the accounting system used in your facility can process payroll deduction files. Once these two things are established, you are ready to start developing the policy and procedures. This requires coordination between Human Resources, Accounting, and the Food & Nutrition Services departments. Determining who, what, when, where and how are all topics that should be discussed.

Some Factors to Think About When Considering Payroll Deduct

  • Who: Will all employees be eligible to participate in payroll deduct? It might need to be limited to only permanent employees; on-call or per-diem employees are not eligible since they really never know how much they are going to actually be working in a given time period.
  • What: Will employees use their badges? What type of badges are currently being used in the facility? Magnetic strip, barcode or RFID? Who is going to maintain the accounts and can this be automated from the accounting system to the POS system? Are there any plans on changing the type of badges that are currently being used in the near future to a different type?
  • Where: If there are multiple dining outlets, will payroll deduct be offered at all of them or only select ones? Will this service be offered at the gift shop, pharmacy, other retail outlets, or if there are "sale events" that occur in the facility (uniform sales, book sales, or farmers markets)?
  • When: What will be the cutoff for payroll? Are there separate payroll dates or cutoff times for different groups of employees, such as FT vs PT?
  • How: How will the accounts be set up? What happens when an employee leaves or is terminated? How will this be handled and who would be notified? Do employees need to "sign-up" or opt out of payroll deduct? Will there be a dollar limit set per pay period? What happens if the employee actually ends up in the negative at the end of the pay period?

Answering these questions and having some policies and procedures for employees and staff in place in advance will ensure a successful transition to implementing a payroll deduct system at your facility.

Kim HelmeyArticle by: Kim Helmey, RD, SuitePoint! Product Manager; Fusion, 4th Quarter, 2014