Whether you have started a business that is small or huge, keeping an eye on each and every thing is not possible. Keeping record of payroll in particular is a very time-consuming and stressful process which often ends up being a nightmare for you as a business owner.
Even a minor mistake in your payroll process can cost you a LOT of money, time and resources.
In fact, a small businesses taxation survey done by the National Business Association in 2016 found that around 65% of businesses have begun to handle their payroll processes payroll software to simplify the process.
Opting to utilise a software for managing your payroll simplifies your human capital management (HCM). Irrespective of the size of your business, it is necessary to have a well-organized payroll system in place to save you and your business from penalties and to assure your employees are paid on time.
You must keep in your mind that for managing payroll you need to have lots of patience, organisation, great strategy and software, and communication across your entire organization. These tips are going to enable you to streamline your payroll process and become more and more efficient:
1) Determine how your employees will be paid:
Putting employees on salaries is far easier to manage for most employers. A normal salary actually reduces your processes, as you can schedule payroll in advance (such as once in thirty days).
Other employers opt for bonus structures, which reward employees based on performance. This makes the workflow more complex.
If you opt hourly employees, you must make sure first that you have a great system or software in place for keeping track of compensation as well as time.
Regardless of which method you choose, keep everything consistent is important.
2) Elaborate every bit to your workers:
If an individual is performing work for your company, no matter whether you have hired him as a full-time employee, independent contractor, or intern, they should be classified as an employee. You must specify your payroll methods to all employees in the very beginning.
Don’t expect employees to automatically know and understand how and why your payroll system works in a certain way – it differs between each and ever company so you will need to include this in your induction process.
3) Choose a reputable software based on your requirements:
When you are opting payroll software or HRIS software for your company, you must choose an option that is hosted on the cloud. This is going to make it easier for you to access all of your payroll info in just one place, whenever you require it. It is particularly helpful to find a software which has interfaces that work on both desktop and mobile, so you or your employees can access it while on the go.
Also look for software that enables employers to integrate their payroll software into other systems, which boosts collaboration & improves communication during everyday business.
4) Do not make your process too complex; save time and money:
As per the National Business Association survey, 31% of small business-owners have been observed spending three to six hours every month on payroll; one-fourth of employers are spending around $500 month on their services.
That’s a lot of time to spend, particularly if you’re doing it yourself!
You may be best served in hiring a payroll manager and freeing up your own time to do what you do best – growing your business.
Utilise tools to keep each thing in one spot, which saves time as well as money in the long run. Think, how much you can save like this?
5) Keep record of everything:
In reality, there are few federal and state laws that make employers to hold onto few records for some time. For example, it is a great idea to keep track of W-2 and W-4 forms, benefits, tax forms, tax deposits, and vacation time.
Another fantastic way to not make your payroll system for your small business too complex is to keep your all records or documents in one place – for example, using an integrated payroll software.
6) Factor in raises and advantages:
Who does not desire to make it easier for himself to give his employees raises? You, too, must aim to give them additional remuneration as a kind of reward.
You can provide your employees a new laptop, or stipend for childcare, or additional insurance. These are only some of the tax-free options you can provide your employees, which is going to simplify tax paperwork on your end.
7) Make a budget:
When you are planning your payroll, you must be assured about your budget for wages and taxes. Employers have to pay Social Security, Medicare taxes, and (often) unemployment taxes. So make sure you have such a plan that focusing on their these expenses.