Throughout their work life, employees receive or must have access to a variety of documents. From work contracts and employee verification to company policies and performance reviews, these documents shape an employee’s paper trail of working with the organization.
HR must maintain accurate, well-organized documentation that is consistent for all employees. Keeping records can prevent disputes, clarify actions and policies, and answer questions employees may have. HR must understand documentation and how keeping it cleanly can help not only protect the company, but also simplify processes for workers. Here’s the information you should make sure your workers have access to:
Pay Stubs
Employees will probably agree that the most important piece of documentation needed is their pay stubs. A payroll check stub is available to employees with each pay they receive. They not only show an employee’s income, they also list tax withheld and deductions for insurance or retirement.
A paycheck stub can be given physically with the check itself or provided electronically. Electronic pay stubs are common if the funds are automatically deposited into one’s bank account. They can be emailed or accessed online if you use accounting software.
Pay stubs not only help employees understand their wages, they are also useful in budgeting. They display the net pay, which is often referred to as the take-home pay. This is the total amount earned after taxes, deductions, and other contributions are removed. Employees can use this amount to plan their weekly, monthly, and yearly budgets. They might also need to use a check stub as proof of income when renting a home or buying a car.
Time Off
Between PTO, holidays, sick days, and bereavement leave, time off work can be a lot to keep track of. That’s why it’s important for employees to have access to time off documentation. This information should include which days the office is closed, when they can take time off, and how much time is available. It should also clarify which days are considered paid time off and if the days rollover if they aren’t used.
Sometimes paid time off is not what is expected. Perhaps a company allows its employees to vote on which holiday they prefer. Maybe instead of taking Veteran’s Day off, they’d rather take the day after Independence Day, since it’s a late night. Keeping track of this information should be as easy as accessing documentation provided by HR.
Time off data could be kept in time off management software, HR information systems, shared calendars, or spreadsheets. The information should be easy to access and easy to update. It should ideally inform employees of changes automatically. This way, HR isn’t required to send out emails or contact team members with each update.
Benefits
An insurance benefits plan offers employees health and life coverage. Health insurance is offered by employers to help with doctors’ and emergency payments. Life insurance is to provide a financial payment to a beneficiary in case of an employee’s death. This covers the costs of bills, funeral or cremation, or other expenses. Some employers also provide accident insurance, which protects against accidental injuries or death.
Benefits are a great incentive when recruiting new employees. However, in order to keep employees happy, they need to be able to use the benefits they were promised. Many employees, as much as 86%, are confused about their benefits. They can find out information or get answers to questions from their HR department or benefits team. Usually during open enrollment, employees are provided with printed documents or online information. There may also be an employee portal or hub where they can research benefits and find answers to their questions.
Oftentimes, the insurance company will provide yearly or semi-yearly meetings to explain the available plans and answer questions. If employees have questions at other times of the year, they can still receive help. The customer service team will be happy to provide assistance through an online chat or toll-free number. Be sure that employees create accounts with the insurance providers’ sites so they have access to their benefits. They should also print their insurance cards for easy access when an emergency occurs or they have a scheduled doctor’s appointment.
Tax Documents
Whether your business sends W-2 forms or 1099s, or both, it’s important to provide access to tax documents so your employees have this information in plenty of time for tax season. Before the new year, reach out to all workers and ask that they review their address. HR needs to ensure that tax documents make it to each employee and verifying their address will help do this. Tax information is usually mailed to employees in January of each year.
Tax documents can be sent via the US Postal Service or electronically. Either way, be sure to promptly follow up before the deadline to verify that everyone has received their tax documentation. It’s best to require a response from employees, so that you are sure that they see your message. Reach out again to people who don’t respond at all.
If you have young employees and this is their first “adult job,” you might offer a few resources. Provide easy-to-understand guides that explain the different tax forms (W-2, 1099, etc.), what the various fields mean, and why these forms are important. You could also host tax preparation workshops that walk them through the process of filing taxes, highlighting common pitfalls and answering any questions employees might have.
Employee Documents
There are many documents that employees must have access to beyond these. They may need access to their job description, training documents, evaluations, disciplinary actions, or recognition for achievements. When you’re onboarding a new employee, teach them where this information is stored. Then, be consistent with your filing practices so everything is always where it should be.