Home > workers compensation compliance > Why Don’t Human Resource Folks Have Integrated Servers?

Why Don’t Human Resource Folks Have Integrated Servers?

A couple of years ago, I was nominated by a board member of Seattle Executive Association to become a member. Everything went fine until a TPA humans resource claims business objected because he said he did the same thing we did reporting workers’ compensation premiums.

When I confronted him, he apologized after learning his whole business was employee orientated and our firm handles employer compliance issues. What I learned was the words and language are the same; the use and meaning were entirely different.

I mention this because it has been a continuing process educating an established line-item industry to start protecting their employer clients. HR and Third Party Administrators do not back up any risk classification compliance data.

HR is the consolidator of payroll information, claims information, and should have access to a server for risk compliance information. When this is done, queries mean something to ensure compliance audits have been attested.

It is not that difficult to integrate all these departmental programs. Try it.

 

Now, back to CONC at TIME Integrator

When adding independent contractor hours, the Timesheets are used to verify and record the hours in a 4-step process to secure accuracy. But before we do that, I would like to explain the importance when you print the Timesheet.

First of all, the Timesheets can be customized to fit your company’s way of doing business. No two companies will use this program the same.

By first identifying the Pay Period dates and reporting quarter, you can use the pull down menu to identify the contractor and his/her classification number to print out his Timesheet. If this contractor is to be reported in more than one classification, you print out those different Timesheets for his signature.

Use the Comment field for reminders, assigning working locations, or anything else you can think.

You can place the units and hours in any box to fit your way of doing business to conform to correct record keeping requirements. Units must be captured for square foot of sheetrock, number of roofing squares, siding, windows installed, framing square footage, concrete yards or square foot laid, etc.

The REIMBURSEMENT area is for capturing materials or meals paid so that this is not considered labor. Any BONUS amount is placed here for the same reason.

In order to be in compliance, independent contractors (subcontractors) must report hours worked. For example, a commissioned independent contractor salesperson’s hours should be recorded at 8 hours per day, or your firm will be subject to penalties including capturing this person as a full time employee estimated at 160 hours per audit guidelines.

Piece work units and hours will be recorded as a standard record keeping reporting requirement. An Average Hourly Wage will be used to estimate hours if there is no signature on this Timesheet from the amount paid. Usually, this ends of doubling the premiums and taxes.

When the signed Timesheets are returned, PAYROLL will use these sheets to Add Contractor Hours for regular hours, authorized payments, units, and any reimbursement and/or bonus payments.  Accounts Payable will reimburse the contractor with the proper documentation with separate checks for reimbursements and bonuses.

Make sure everyone signs these legal documents as to the true hours worked including the piecework and special industry independent contractors. State regulations state you have to print and get a signature on the Add Contractor Hours timesheet per record keeping requirements. This will help during audits to prevent estimated hours and excess penalty taxation.

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