Tips to Help Your MSP Business Avoid Payroll Issues

Your MSP business must take all care that internal infrastructure is properly managed. Your clientele will feel it if employees don’t feel secure at your operation. Employees will be distracted, customer service will lag, and prospects, as well as clients, will subconsciously see something is amiss.

Ensure internal operations are as optimal as external service provision. One of the common areas where there are issues is payroll. Payroll is complicated, it can be expensive, and it’s something you don’t have to stress over if you’re careful to cover all your bases. Following are strategic considerations worth taking into account:

 

• Overtime issues
• Improperly categorizing employees (vendors, interns, etc.)
• Time issues

 

Overtime Issues

Your MSP business will have overtime if it employs hourly employees. One way to overcome overtime is to employ salaried professionals. However, if there is a lot of extra work, you’ll lose them as they realize they’re doing more work for essentially less money over time.

Overtime pay helps keep everybody honest, but there are legal considerations involved. One, don’t work employees up to a minute or two before overtime on the weekly. This is underhanded, and it will facilitate mistrust. Let them get a little every now and again. Two, ensure employees understand your overtime practices.

 

Improperly Categorizing Employees (Vendors, Interns, Etc.)

Interns and vendors will work under different payout paradigms than management and legacy employees who constitute your primary team. Ensure you properly categorize your employees.

 

Time Issues

Does a minute count or not? Do seconds count? Technologically speaking, it’s possible to calculate time to the microsecond, to the picosecond, and even the jiffy. Obviously, it doesn’t make sense to keep time so close. But where do you draw the line? When are employees milking the clock? What is the cushion around their shift? Is it five minutes before/after payroll penalty activation? Determine such parameters, and enforce them.

 

Payroll Optimization

Your MSP business will likely have more effective payroll if you figure out time considerations, categorize employees correctly, and ensure overtime is effectively managed.

Marc Bartholomew

Marc Bartholomew

Marc Bartholomew is the CEO and founder of Integritechs Technology Professionals, a Los Angeles based Technology support provider, offering a variety of managed IT services in Los Angeles to small businesses. Integritechs provides a wide array of IT solutions in the greater Los Angeles area, with an excellent service by aligning their goals with their customers: stable, reliable Los Angeles IT services, managing technology throughout its lifecycle, while controlling costs. Marc believes the best way to accomplish this is through regular, proactive management. Integritechs achieves this by encouraging scheduled visits and bundling everything their customer's needs into their managed services plans in los Angeles to keep their systems running smoothly.