When looking for work, we tend to think about certain key factors. Will the job be something I enjoy doing for many hours per day? Will I get along with my coworkers? What’s the salary or hourly rate?
But we might forget about a simple question that can make or break our financial livelihood: How easy or difficult will it be to get paid by my new employer?
Think about what happens when you aren’t paid accurately or on time. You might have to spend a lot of time going back and forth with your employer’s accounting department. You might not be able to make your rent, or you may need to eat into your savings. In other words, “how you get paid” is far more than an administrative detail, and treating the subject as an afterthought is a mistake.
Several years ago, I worked very hard as a birthday party hostess for a new children’s play center. I earned $11 per hour, but when my employer realized I was receiving up to $100 a day in customer tips, they cut my hourly pay by 50%. I wasn’t able to buy a car as planned that year due to the unexpected loss of income, and from that moment forward, I gave a great deal of attention to pay. What is it going to be, how will I get the money, and how can I ensure I fairly receive it?
The next time you apply to a new employer, here are three things to keep in mind.
What is the pay structure – and is it legal?
This is an especially relevant question if you are thinking of working for a small business or startup. Your new employer should have a plan in place for paying employees in accordance with the Equal Employment Opportunity Commission and the Fair Labor Standards Act in the U.S. This means that it must:
- Procure an Employer Identification Number (EIN)
- Ensure new employees file a W-4 form
- Schedule pay periods that correspond to IRS tax withholding
- Have a payroll administration system
- Report payroll taxes regularly
- Have policies in place for overtime, sick and vacation time, and other paid time off (PTO)
- Understand what constitutes an employee versus an independent contractor and is classifying workers correctly
To determine if your target company is a reputable business, check out online databases such as FEIN Search, Dun & Bradstreet, Experian, and Guidestar. For a fee, you can gain access to an organization’s EIN and current financial standing.
Note that if you are applying to a large company with many offices or locations, it’s probably safe to say it checks the right boxes. You should, however, confirm the details with the human resources professional managing your hire.
What are employees saying?
When deciding to take any new job, it’s worthwhile to ask how people in your role today feel about their experience. If at all possible, try to meet these workers during your interview process.
The conversation can be casual, but should include questions like: “What’s a normal day like working here?” “Do you feel your manager values and appreciates you?” And on the topic at hand: “Is getting paid simple and reliable?”
A Glassdoor search is useful in uncovering potential red flags because comments are often published by former employees, and therefore likely to be both honest and informative. Alternatively, take a look at your own network to see if you’re connected to someone who works there (or are connected by a degree of separation) to gather additional intel.
For the rest of the piece, check out the Ceridian Dayforce Wallet blog.
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