Standing data refers to master information about employees that is maintained in payroll systems. This foundational data changes infrequently and forms the basis for ongoing payroll processing.
Types of Standing Data
- Employee personal information – Details like name, date of birth, address, phone number, emergency contacts, and social security number.
- Tax details – Federal, state, and local tax jurisdictions, tax filing status, exemptions, and withholding allowances.
- Pay details – Hourly/salary rate, pay frequency, payment method, and bank account for direct deposit.
- Benefits – Health insurance, retirement plan contributions, flexible spending accounts.
- Time off – Vacation, sick time, and other leave accruals and balances.
- Company information – Department, location, manager, seniority date, etc.
Examples
- Jane Doe starts a new job on January 1, 2023. Her hiring paperwork includes standing data like date of birth, mailing address, marital status, federal tax exemptions, job title, pay rate, department, and direct deposit setup.
- Bob changes his mailing address in May 2023. The payroll system is updated with the new address as standing data. His pay stubs, tax forms, and other mail now go to the updated location.
- Sue gets married in June 2023 and changes her last name and tax filing status. These standing data fields are updated in her employee record before the next payroll run.
Importance of Accurate Standing Data
Maintaining accurate standing data is crucial for several reasons:
- Compliance – Incorrect tax withholding or benefits deductions can lead to compliance issues.
- Payroll errors – Faulty standing data often causes calculation errors resulting in incorrect pay.
- Tax forms – Inaccurate employee details lead to issues with printed and filed tax documents like W-2s.
- Reporting – Standing data feeds into analytics and external reporting, so bad data corrupts reporting.
Overall, standing data is the core employee information that underpins payroll operations. Keeping it updated and accurate is essential for avoiding major payroll disruptions or compliance problems down the line.