When you first start a business, it can be challenging to set up a salary package for your employees and track the hours they work. While you want to avoid going overboard on your employee’s benefits, they must be fairly compensated.

Additionally, if you fail to track their hours worked, you could find yourself in a sticky legal situation. Below we will go into a few tips and resources that can help set up a salary package and properly track the hours your employees work.

Section 1: How To Set Up Salary Packages

Salary packages for new businesses can be challenging to set up since you do not have any employees. The base salary you give employees should be fair, while your other compensation expenses (like bonuses) should be related to the company's success. You need to consider various factors when creating salary packages, including:

• The demand for the job
• The skills and education required for the position
• How long it takes to train a new employee in comparison with current employees
• What other companies in your area are offering for similar positions

Section 1.1: The Salary Packages Components

Base Salary

The base salary is the minimum amount of money you will pay an employee over a certain period (i.e., per year). This number can change based on performance reviews and promotions. Use a paystub generator to create a salary package template to record all the components of an employee's pay.

Bonuses

Bonuses are the additional compensation you pay an employee over a particular time (i.e., per year). You can use bonuses to motivate your employees or reward them for going above and beyond. However, you should only give bonuses if your company makes enough profit to compensate your employees in bonuses.

Section 1.2: Other benefits you might want to include

Other salary package components you might want to consider including are

• Health insurance
• Time off from work (i.e., paid vacation)
• Pension plans

Include these benefits in your packages, but only if the company makes enough money to provide them. Offering such benefits can be a great way to attract and retain talent in your field.

Section 2: How To Track Hours Worked For Your Startup Business

If you do not accurately track the number of hours each employee works, you will risk paying them more than they are owed. Additionally, if an employee complains about unpaid overtime, it could end up being costly for your business. You can use a time and attendance tracking system to monitor employees' hours worked. There is software available to help you manage employee timesheets and track their hours worked for each day.

Use the system to keep track of employee’s:

• Onsite work hours (start and end times)
• Off-site work hours (start and end times)
• Time spent on breaks

Using an online, automated timekeeping system allows you to monitor and track employee hours worked quickly and easily. It is crucial to remember that each state has different laws regarding how many hours an employee can work in a day and week, so you must follow your local state requirements.

Section 2.1: The Importance Of Accurate Record-Keeping (For Tax Withholding, Etc.)

The Fair Labor Standards Act (FLSA) requires you to keep accurate records of the number of hours your employees work. Therefore, you should include time worked when determining how much you owe them for salary and benefits. You can track employee work hours by using a timesheet generator that is integrated into payroll software.

When deciding how to structure your employee's salary packages, it is essential to consider the factors suggested above. If you are prepared financially for that cost, you can include these components (i.e., base salary, bonuses, benefits) in each of your employee’s paychecks.

You should also track their hours worked with a time and attendance tracking system integrated into your payroll software.