I administer payroll for several clients, and find that situations often arise that can delay payroll processing, and those situations can be anticipated and prepared for while writing the manual. Simple items such as what documentation should be obtained from the employee before start of work (W4, I-9, direct deposit information), when spelled out in the manual and put in a checklist, make onboarding employees systematic and painless.
Rate of pay, overtime policies (be sure they comply with state law!), vacation and sick policies, employee benefits are all considerations that should be documented.
Payroll administration is one reason for a manual, but in addition it will help to ensure fair treatment of all employees,compliance with state and federal laws and clarify expectations, all of which can contribute to a pleasant work environment, as well as potentially keep you out of court.
The Small Business Administration has good information on what should be contained in an employee manual (http://www.sba.gov/content/employee-handbooks), and the National Federation of Independent Businesses offers a model handbook (http://www.nfib.com/business-resources/business-resources-item?cmsid=28642) that can be used as a starting point.
Its' surprising how many things there are to consider when hiring employees. Planning ahead and establishing documented policies will help smooth the road.
