Payroll: Subway Sandwich Artist
Tracking Hours Worked
- Number combination, unique to each worker
- Pin is typed into cash register computer
"Time cards" are "punched" by typing pin into register at beginning and end of shift to track hours worked; a receipt is printed for the worker.
The register computer tracks the hours for the employee and employer.
- Sandwich artists are hourly workers
- About $7.50 per hour starting
- Overtime rate of 1.5x normal pay rate for more than 40 hours worked per week (follows MO regulations)
- Employees paid through a direct deposit every 2 weeks to an account that they register upon employment.
- Money earned is transferred directly into the worker's account
Subway restaurants are individual franchises owned/operated by separate owners. Most of these owners outsource financial services (like payroll services).
The company collects necessary information from Subway (hours worked, deductions for each employee) every pay period, and the company uses the information to calculate total pay for each employee (factoring in taxes).
The outsource company can then either deposits the checks for the proper amount into each employees' account or deliver the paychecks to Subway for authorization before the checks are deposited.
The Subway I visited did not describe a special payroll checking account separate from the general checking account. Instead Subway outsources their payroll. Instead of a check for total net pay being written from the business’s general checking account and deposited in the payroll checking account to be used to write individual checks for all employees, the outsourcing company takes care of the payroll procedure.
The outsourcing company probably has hundreds of different accounts for many different clients, and the separate accounts would help the company stay organized in order to prepare accurate payroll and tax reports for businesses it services, like Subways.