For most businesses, payroll management (and processing) is one of the monotonous processes where delays, errors, and legal issues are common. From processing those paychecks to issuing bonuses, making statutory deductions, keeping track of required documentation, and observing labor laws compliance, payroll management may not be a bed of roses or a walk in the park. A small mistake can lead to major problems.
For this reason, it is crucial for every business owner to have a payroll management plan that is organized and detailed. It should consider essentials such as payroll taxes, minimum wages, overtime, PTO, etc. Well, it can be a bit hectic if you don’t have an effective and efficient strategy.
So, is payroll driving you mad? Well, you are not alone. Many business owners and human resource managers face challenges when it comes to finding better ways of executing their payroll processes. When running your own business, here are some important tips on how you can better manage your payroll.
1. Invest In the Right Payroll Management Software
Truth be told, technology has made payroll processing and management easier than ever before. If you are looking for ways to better manage your payroll effectively, the answer may be as simple as adopting the right payroll management software tool.
Manual payroll systems are time-consuming and very much prone to errors. On the flipside, automating your business with the right payroll management software is more beneficial. It makes managing pay for your employees easier for your business by increasing accuracy while saving time, energy, and money. It comes with features that allow a wide range of functionalities. You can easily keep track of the time each staff member spends at work, employee time off, tax deductions, staff benefits, salary changes, and anything else relevant as far as payroll is concerned.
2. Keep Up With the Relevant Payroll Rules and Regulations
Payroll legislation keeps changing and may affect the way you need to manage your payroll. Therefore, it pays off keeping abreast of these ever-changing rules and regulations to avoid potential legal penalties and legal issues. Staying up to date with payroll regulations enables business owners to avoid costly processes like auditing and tax filing corrections. So, if you are not sure about the applicable regulations, it is prudent to consult a reputable payroll legal adviser.
3. Keep Calm and Consult the Experts
Managing your own payroll can be overwhelming especially when doing it in-house and by yourself. The good news, however, is that you don’t have to stress about it. There are plenty of payroll experts in this field. They are experts in what they do. Your business will always be on top of regulations and paperwork. Therefore, consulting a payroll expert will assist in streamlining your payroll, compliance, benefits, and much more while you focus on other productive aspects of your business. So, if managing your own payroll becomes a hassle, then you shouldn’t be hesitant on outsourcing to a reputable payroll company.
4. Keep It Simple
Even if payroll involves many steps and tasks, that doesn’t mean it has to be a complex process. A simplified payroll management process is actually the best to keep things running smoothly without much inconvenience to the entrepreneur or HR department. One of the ways you can simplify things is by doing away with writing checks and doing direct deposits instead. Through this, you don’t have to track down all the checks you have to prepare and issue. You can just keep a simple electronic bank transfer documentation. This makes the transaction much faster, time-saving, and cuts down on paperwork.
5. Always Maintain Your Employee and Payroll Records
As you may already know, the federal and state governments require you to maintain your employees’ and payroll records. This is mostly for tax issues and legal concerns. For example, you will find that some regulations require employers to store any payroll information regarding paid wages for at least three years. As a business owner, you may find yourself on the wrong side of the law in case those government agencies ask for that information and you fail to provide it. Also, regulations are in place for the process to be followed in disposing of payroll records after termination of contracts.
To conclude this piece, most business owners consider payroll management as one of the most challenging aspects of business management. However, it doesn’t have to be so frustrating. With the right information and tools as explained in this article, paying your employees should be easier, faster, and streamlined.