A payroll policy explains the payroll process, which includes the administration of an organization’s employees’ salaries, timekeeping, payroll schedules, and payment methods. This policy is intended to establish control and inform employees on what to expect on payday.
Payment schedule (pay periods and paydays).
This policy explains the pay period (bi-weekly or monthly) and the actual payday to your employees.
Overtime rules
This policy states whether overtime is permitted at your workplace or not. How many hours can be considered as overtime as per government regulation? And how overtime is calculated? It also mentions the approval process of overtime and the consequences of unauthorized overtime.
Employee benefits
This policy describes the different benefits you offer and how your employees can avail them. It may include paid vacation, holidays or sick leave, health insurance plans, retirement plans, flexible spending accounts, business expense reimbursements, and paycheck advances.
It explains to your employees the accrual methods for paid benefit days such as vacation and sick time and the fines or action if they are absent more than the allowed days.