'Tis the season for family, food, presents… and confusing payroll administration situations? Could be!
Handling holiday pay may be easier than juggling multiple state holiday travel plans or hanging lights on an icy roofline, but it can still raise some pretty tricky questions.
What do you need to know? Check out the following 8 important holiday pay insights and get on to the egg-nog:
If you’re an employer who’s more Grinch than St. Nick, bear in mind that you are not required to compensate employees for the time they are out of the office on the holidays. As described on the United States Department of Labor page covering holiday pay, the Fair Labor Standards Act stipulates that neither vacation nor holiday pay is federally required; it’s a matter of agreement between the employer and employee.
While the federal government doesn’t require employers to pay employees when they are celebrating holidays, it turns out that employees like it when they do. Surprise, surprise!
While companies at large are not legally required to pay holiday wages as a standard practice, there are some situations where it is required of government contractors. For bid work where the McNamara O’Hara Service Contract Act (SCA) or Davis-Bacon and Related Acts (DBRA) apply, one of the stipulations is that employees must receive holiday pay.
Had a change of heart on providing holiday pay? Better check state payroll laws. Many states have made “use-it-or-lose-it” rules illegal, banning businesses from reneging on previous holiday or vacation pay commitments.
In fact, printer manufacturer, LexMark International, recently lost a $13.6 million class action lawsuit after a California appeals court upheld the finding of a lower court that employees were due holiday and vacation back pay. Law360.com (free registration required).
An alternative for employers who no longer wish to pay out on holidays is to cap the ability to accrue holiday or vacation pay moving forward. Law360 noted:
An accrual cap is legal… because it prohibits the employee from earning vacation time in the first place, rather than taking away vacation time after the employee has earned it.
Which holidays should your business provide pay for? It’s a question for every company to answer individually. But many companies opt to provide paid time off coinciding with federal holidays. Here’s a list of the 10 most frequently business holidays in US & Canada:
|US Holidays||Canadian Holidays|
|New Year’s Day||New Year’s Day|
|Birthday of MLK, Jr.||Good Friday|
|Washington’s Birthday||Easter Monday|
|Memorial Day||Victoria Day|
|Independence Day (4th of July)||Canada Day|
|Labor Day||Labour Day|
|Veterans Day||Remembrance Day|
|Thanksgiving Day||Christmans Day|
|Christmas Day||Boxing Day|
For a more complete list of popular holidays: Public holidays in the United States, Public holidays in Canada (Wikipedia)
Progressive employers are increasingly augmenting their paid leave options with “floating holidays.” A floating holiday is a paid day off which can be utilized at the employee’s discretion. Technically, a floating holiday is functionally equivalent to a standard vacation day. But a floating holiday option can help companies with diverse employee backgrounds more visibly honor the desire of employees of all faiths to observe religious holidays.
Managing holiday pay for salaried employees is straightforward. Standard pay period compensation continues as normal without debiting vacation hours to cover sanctioned holiday time out of the office.
However, there are a couple of different ways to handle holiday pay disbursements for wage-earners.
The benefit of the latter approach is that it keeps holiday hours from getting mixed in with actual hours worked. Additionally, paying out holiday time as a bonus rather than “hours worked” can prevent the early onset of an overtime payout threshold.
As with any payroll task, the tools that you have at your disposal will greatly impact the efficiency and accuracy with which you complete the job.
A capable payroll software package can help you answer yes to the following questions:
Microsoft has a variety of Dynamics line ERP software products to fit the needs of different industries and company sizes. The most well-known of these solutions include Dynamics GP, Dynamics SL, Dynamics NAV, and Dynamics AX.
Today, NAV and AX, for the most part, have been replaced by either Dynamics 365 Business Central or Dynamics 365 for Finances & Operations.
Below we detail the differences between the various Dynamics line of products to help you choose the best solution.
|Dynamics GP||Dynamics SL||Dynamics NAV||Dynamics AX|
|Best for Company Sized:||Small-Mid||Small-Mid||Small-Mid||Mid-Large|
|Number of Users:||1 - 500||5 - 250||5- 750||5 - 2,250|
|Platforms:||Windows, Web||Windows, Web||Windows, Web||Windows|
|Deployment:||Hosted or Local||Hosted or Local||Hosted or Local||Hosted or Local|
|Industry Focus:||Distribution, Manufacturing, Non-Profit, Consulting, Service, Healthcare, Finance & Insurance, Construction, Government||Consulting, Construction, Manufacturing, Service, Distribution||Manufacturing, Distribution, Consulting, Construction, Service||Manufacturing, Distribution, Consulting, Construction, Service|
|Who Typically Uses:||Mid-sized companies that outgrew entry-level accounting software and need more advanced features.||Service and project-based companies looking to track expenses, resource planning, and billing.||Mid-sized companies with international business needing multi-language/multi-currency capabilities.||Large enterprise level looking for highly customizable ERP solutions.|
|Average Implementation Time:||3-6+ Months||3-6+ Months||3-6+ Months||3-12+ Months|
|Former Names:||Great Plains||Solomon||Navision||Axapta|
Some of the key functionalities available either built within the software or available as an add-on from a third party:
|Key Functionalities||Dynamics GP||Dynamics SL||Dynamics NAV||Dynamics AX|
|Bill of Materials||Yes||Yes||Yes||Yes|
|Customer Relationship Management||No||No||Partial||Yes|
|Point of Sale||No||No||No||Yes|
|Sales Order Management||Yes||Yes||Yes||Yes|
|Warehouse Management (Advanced)||No||No||Yes||Yes|
Microsoft Dynamics GP is best suited for small to medium-sized businesses. This solution is best for companys looking for strong financial management and reporting solutions. Dynamics GP is easy to install and maintain if you dont need too much customization.
The history of Dynamics GP:
Dynamics GP is still in use by many small businesses today. While Dynamics GP is still sold and supported by most resellers, Microsoft has been directing new software buyers to consider their Dynamics 365 suite.
Microsoft Dynamics SL is a little more specialized than Dynamics GP. Dynamics SL is primarily used by small to mid-sized project-based companies for financial and project management, whereas Dynamics GP is used as a more general ERP for many small to mid-sized businesses.
This history of Dynamics SL:
Most businesses have moved to Dynamics 365 because Dynamics SL is becoming dated and doesnt have as much support as it used to. Few vendors still offer Dynamics SL as an option.
Microsoft Dynamics NAV has many overlapping functionalities of Dynamics GP and is also suited for small to medium-sized businesses. However, Dynamics NAV is stronger at managing distribution and manufacturing than Dynamics GP. Dynamics NAV is much more customizable than Dynamics GP, making it a little more difficult to install and maintain. The toolset for Dynamics NAV lets you tailor the solution to your businesss needs.
The history of Dynamics NAV:
Dynamics NAV is no longer being updated starting in 2019 and has been replaced by Dynamics 365 Business Central.
Dynamics 365 Business Central will have the core functionalities of Dynamics NAV along with the ability to use a cloud-based platform.
This solution is ideal for large companies like multi-national manufacturers that have 100s of users. It can take over 1 year to implement and requires onsite, local project management to maintain the system. Top competitors include SAP and Oracle.
The history of Dynamics AX:
As Dynamics AX and Dynamics CRM have been combined to form the new Dynamics 365 for Finance & Operations, Dynamics AX is no longer sold or supported. The move to Finance & Operations includes additional modules available to tailor to specific industries including: