Payroll can be the most complicated part of running a successful business, but it doesn't have to be. If your company does not have a payroll management service to handle payroll activities, then that means you're essentially juggling the job on your own, and we want to help.
Here are some tips and suggestions that will make all the tasks leading up to payday a lot less stressful.
Carefully choose your payroll manager and software
Payroll needs to be a priority. Your employees are counting on their paychecks, so if there's one task that shouldn't be dropped in the whoever-has-time-for-it bucket, it's payroll. Plus, for confidentiality reasons, it's important to have a single qualified manager or management team overseeing your payroll activities and maintaining your employees' financial privacy.
Managing payroll usually requires some type of software. The software you choose must also be accurate, accessible, and secure.
- Accurate. The best software will allow you to automate your payroll process, eliminating the likelihood for human error.
- Accessible. Software that's hosted on the cloud can be easily accessed from multiple devices.
- Secure. With something as confidential as payroll, you want to be sure your software has sufficient cyber protection.
If your payroll software isn't making payroll easier, it's making an already complex process harder, and you should start researching other options.
Stick to a payroll schedule
Decide if payday is going to be once a month, twice a month, or every week, then make sure it happens on the same day for each employee.
Payday should not vary from one department to the next. It's much easier on your payroll manager and much less confusing for your employees if payday is consistent.
P is for paperless
Payroll is much simpler if you can avoid the paperwork. Direct deposit is one way to go paperless, and most employers enjoy its advantages as much as their employees do. With direct deposit, you don't have to worry about cutting and distributing paper checks every week, because pay period salaries automatically deposit into employees' selected accounts.
It saves on time and money — not to mention, trees.
Another huge benefit of going paperless is that employees always have access to their pay records online.
Track your process
As much as we support paperless payroll, some paperwork is necessary. By law, companies are required to hold onto certain documents such as W-4s, W-2s, and other tax forms for a certain amount of time. Make sure you're keeping track of the information you're legally responsible for.
Another part of tracking payroll is evaluating the efficiency of your payroll process. Find out exactly how many hours your payroll manager is spending on payroll each pay period, and calculate those hours into dollars (hourly rate multiplied by hours spent on payroll). If the total exceeds the cost of what it would take hire a payroll management service, then it's time to do just that — outsource payroll.
Once you outsource payroll, your previous payroll manager will have more time to focus on other activities that will have more efficient benefits for your company.
How do I outsource payroll?
If you've decided that outsourcing payroll is the most efficient next step for your business, let us know! With our Exclusive Managed Services program, you can enjoy the benefits of payroll management and much more. Click on the link below to learn more!