Union Payroll Processing: 3 Things to Know
union-leaders-meeting

Union Payroll Processing: 3 Things to Know

Labor unions have frequently been in the news over the past few years, as the administration and its appointees sought to limit union power. Rulings on collective bargaining and union regulations can have a big impact on the day-to-day running of businesses. HR departments need to keep a close eye on these laws, as the inclusion of union members can require substantial changes to how you onboard, train and pay employees.

Unions require heavy time tracking to ensure employees are not working more hours than permitted or working hours that don’t align with their schedules. But payroll processing for union employees does not have to be a major burden: having the right tools in place – such as time and attendance tracking or mobile punching functionality to help ensure that employees don’t clock in from outside of the building or geographic area designated by the employer – can make the process relatively simple.

Here are three important things to keep in mind when thinking about payroll processing for union workers:

  1. Union deductions
  2. The main difference between payroll processing for union and non-union employees is the union deduction. A predetermined portion of each paycheck is to be set aside for union dues. If your company employs both union and non-union workers, keeping track of deductions can be tricky. Further complicating matters, there are four types of union “shops” that can be found in a workplace:
    • Closed shop – Employees are required to join the union as a condition of being hired, and companies cannot hire a candidate not willing to join.
    • Union shop – Employees are not required to join a union as a condition of being hired, but they have to join within a certain time frame (usually 30 days).
    • Agency shop – Employees are required to pay union fees and dues, but they are not required to become participating union members.
    • Open shop – Employees are not required to join a union or pay dues and fees. Open shops are typically found in right-to-work states.
    Paycor’s payroll software automates this process so that the proper union deductions are always taken out on time and in full.

  3. Pay scale differences
  4. A number of factors go into determining the pay rate for union employees. These may include seniority, department and job performance. Most unions have specific requirements regarding pay scales and payroll processing, so it is important to take a detailed look at all of the rules and regulations put in place by each particular union. Because of this complexity, most unions prefer that companies use automated payroll processing software, as having a system makes it easier to implement specific payroll requirements. union-payroll-report

  5. Accurate time tracking reports
  6. While ensuring accurate tracking of hours worked and vacation time taken are always necessary tasks for HR departments, it is even more important for companies where union labor plays a significant role. Given the specific requirements surrounding the length of the workday and the workweek, a business that fails to accurately track hours worked could be putting itself at risk. Paycor’s time solution can track this data and use it to create quick and accurate reports. This makes it easy for business leaders to provide the necessary documentation during discussions with union leaders.

How Paycor Can Help

We offer the best HCM platform and the best proactive service, expertise and thought leadership for medium and small businesses. Our team of recruiting, HR, tax, payroll and compliance experts are dedicated to customer satisfaction and success. From proactive service to industry-leading thought leadership, we provide you with the tools you need to make a difference. Need help processing payroll complexities within your organization? Reach out to our team to learn how we can support your business.

Contact Our Team

More to Discover

Webinar: Vaccination Policy: What HR Leaders Need to Know - 2/9 @11AM ET

Webinar: Vaccination Policy: What HR Leaders Need to Know - 2/9 @11AM ET

With the vaccine rollout underway, it’s critical for HR leaders to know the impact to their organization. Join Paycor and the team from Constangy Brooks, Smith & Prophete for a webinar where we will cover employment issues related to the COVID-19 vaccine(s).Our presenters will cover: • How employers should think about structuring their vaccination policies • The impact of the vaccine rollout on employee safety • Reviewing the legal aspects of vaccine policies and the impact these policies will have on organizationsSpeakers: Lori Mans and Jonathan Yarbrough Partners with Constangy Brooks, Smith & Prophete LLPLori's primary focus of her law practice involves representing management in state and federal court employment litigation....

Webinar: Courageous Leadership During Challenging Times - 2/25 @2pm ET

Webinar: Courageous Leadership During Challenging Times - 2/25 @2pm ET

As a leader during these unprecedented times, you have been consistent and resilient. 2020 brought more than a virus to the world; it brought the challenge of isolation to many leaders supporting team members, families, and an extended network while adjusting to a new normal. Whether you are meeting significant goals or engaging in community work, you show up every day bringing creativity, insight and discipline to your team. But, how much are you investing in the care of your leadership so that you can lead others well? In this webinar, we will gather to discuss avoiding burnout, what it means to practice self-leadership and all the ways leaders can share resources and lift each other. Leadership is a journey that you do not have to...

Webinar: Virtual Demo: Workforce Management Solutions - 2/10 @1pm ET

Webinar: Virtual Demo: Workforce Management Solutions - 2/10 @1pm ET

Paycor’s human capital management software modernizes every aspect of people management, from the way you recruit, onboard and develop people, to the way you pay them, retain them and build a company culture. With a single source of truth for all employee data, you’ll never have to switch platforms, log-in to multiple systems, re-key information or open multiple spreadsheets. In this live virtual demo, our product experts will highlight Paycor’s Workforce Management Solutions, including Payroll, Time and Scheduling. Discover how HR Leaders can optimize productivity, track labor costs, confidently pay employees and ensure you have the right coverage when you need it. Speakers: Kim Saldana and Kyle Baker

Getting a Handle on Employee Absenteeism in Manufacturing

Getting a Handle on Employee Absenteeism in Manufacturing

Absent employees represent a significant cost to any business, but it poses a particular problem for manufacturers. In factories, employees fill more specialized and skilled positions that play key roles in the manufacturing process. An absent employee may not only impact his or her immediate function but every other function downstream in the process. Some experts estimate employee absenteeism can cost the U.S. manufacturing industry $3 billion every year in lost productivity.Common Causes of Staff Absenteeism Many factors can have an impact on employee attendance but some of the more common causes include: Illnesses or injuries Stress and depression Low morale, disengagement or general job burnout Caring for a sick child or elderly...