Are You Ready for National Payroll Week?

September 04, 2012

Now that we’re all back to work after celebrating Labor Day, don’t let the fun stop – continue the celebration by recognizing National Payroll Week(NPW) at work. This special week celebrates the economic, cultural, and social achievements of workers and the significance of “an honest day’s work for an honest day’s pay.”  Started in 1996 by the American Payroll Association, NPW is a national campaign to help America’s workers understand more about their paychecks, the payroll withholding system and other payroll-driven benefits.  Shining a spotlight on employees’ paychecks is a great way to transition to your upcoming open enrollment by getting your workforce already starting to think about their paycheck and current deductions. 

The NPW website www.nationalpayrollweek.com offers great ideas for workplace activities, features several contests employees can enter for prizes, and includes an online survey to test the knowledge of your employees and to also get their feedback.  Here’s a sample of the questions:

The 2012 Olympic medal winners not only receive glory and fame, they also receive a very expensive medal. Should the winners pay income tax on the value of the medal?

Yes/No

Beginning next year, contributions to (FSAs) will be limited to $2,500 per year. Will you have to reduce your FSA contribution to meet this limit?

Yes/No/Not Sure

It’s amazing how much you can learn by just viewing someone’s paystub.  When I meet with employees for a financial coaching session, having a paycheck to review allows me to easily identify how much they are contributing to their 401(k) and whether their contributions are pre-tax or Roth.  I can also see what their witholding allowances are and if they fund an FSA or HSA. Educating your employees on the importance of correct tax withholding and the importance of payroll deduction towards their retirement plan is a critical component of workplace benefits communications, and many employees are amazed at the tax savings they can achieve from utilizing an FSA for medical or dependent care costs or by funding an HSA if it’s available to them.  However, these employees never even take the time to really look at their own paycheck, so with Labor Day fresh in their minds, celebrate National Payroll Week with your workforce and hopefully they, too will find their paystub as interesting as I do.