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How to Meet the New Payroll Challenges of Coronavirus

Posted by Dawn White on Aug 24, 2020 8:07:33 AM
Dawn White
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Female factory worker wearing face mask | manufacturing payroll challenges of coronavirus

The coronavirus outbreak created a major disruption in the manufacturing industry. Even though manufacturers have returned to work, it still isn’t business as usual. As new COVID-related regulations are introduced and continually updated, manufacturers are facing new payroll complexities.

Outsourced payroll systems can take many of the burdens off your plate, but they can’t solve all of them.

Let’s take a look at the payroll challenges manufacturers are dealing with during the coronavirus disruption, and introduce a solution that makes payroll more manageable.

Multiple Pay Rules

There’s no such thing as a single pay rate in manufacturing. You have a long list of variables that influence each worker’s paycheck every week. On top of that, the coronavirus outbreak has added new pay rules you need to keep track of — such as hazard pay, Emergency Paid Sick Leave, and other COVID pay codes.

When you start calculating more than a couple variables to determine what your workers get paid, you’re operating outside of the wage engine and adjustment rules that payroll systems are designed for.

It’s only becoming more challenging to manage employee job rates based on variable pay rates — all while staying in compliance with Fair Labor Standards Act (FLSA) and state COVID regulations. Your employees are counting on you to issue accurate checks every pay period, and it’s getting more difficult to get the calculations right every time.

Union Pay Policies

You probably employ union workers, which means you have union rules to deal with every payday. Union rules involve complex pay policies and calculations that make timekeeping and payroll particularly challenging to manage.

If your CBA is expiring, you may find your union pay rules becoming more complex. The economic impact of COVID-19 could have an impact on your labor negotiations, making payroll calculations even more involved than before. Examples of new provisions could include:

  • Working conditions for employees working remotely
  • Hazard pay for essential workers
  • Employees’ right to refuse dangerous work
  • Temporarily closing to sanitize the workplace
  • Protocols for testing or screening employees for COVID-19

Many unionized companies have resigned themselves to laborious manual timekeeping and payroll processes. But more and more companies are looking for ways to automate their pay policies and business rules to save time and avoid labor disputes.

Back Office Efficiencies

As manufacturers realize the need to adopt more virtual practices, they’re also looking for new ways to become more efficient throughout the entire organization. That includes the back office as well as the shop floor. Today’s uncertain economy makes it more important than ever to trim the fat in every facet of the business.

There are few areas with greater opportunity for streamlining than the payroll department. Even in normal times, payroll personnel log tens of hours each week running manual calculations and entering data into convoluted spreadsheets. Now, with new COVID pay codes, the task becomes even more of a slog.

IDI for Manufacturing Companies

IDI understands the complexities of meeting these requirements — especially if you have processes across multiple systems that don't scale. Our payroll solution for the manufacturing industry lets you cut time and prevent costly errors by automating the complexities that you face every pay period. 

IDI’s solution does all the heavy lifting for you, with just the click of a button. Our application automatically:

  • Retrieves all of the timecard data and applies the correct job rate for each employee
  • Calculates the incentives and piece production rates
  • Checks seniority rules
  • Integrates it all with payroll 

With a single click, or on a scheduled basis, the application takes employee data from multiple sources, applies business rules and pay calculations, and sends the results to Payroll for processing.

For manufacturers that need to get on top of the COVID-19 impacts, our solution delivers simplicity, efficiency, and peace of mind. 

See how it works.

Confidence During Coronavirus

IDI has been developing HCM solutions for the manufacturing industry for decades. With 30 years and more than 30,000 satisfied customers, we’ve learned to meet the changing needs of manufacturing companies, so they can stay on top of the latest demands on their businesses — whether it’s business as normal or a bit less predictable than normal.

Get Started with a Pre-Evaluation →

Topics: Manufacturing Industry Solutions