Payroll is an integral part of your business. It can often be complex, but it is necessary in order for your company to run successfully. It can become less of a frightening task if you look for ways in which you can reduce time, stress and errors related to the processing of payroll. No matter how large or small your company is, here are five tips to help you get the ball rolling on a smooth, proficient payroll system:
1. Get Properly Organized.
When it comes to payroll, there are a lot of moving parts and dates. There are due dates for payroll deposits, year-end payroll-related activities, distribution of payroll reports and more. All of this can be very difficult to keep track of, unless you have a to-do list in your calendar. A calendar can help you lay out the entire payroll process from start to finish, which can help identity exactly when certain tasks need to be performed per cycle.
2. Streamline Throughout.
There are a lot of company-wide factors that must be taken into consideration when doing payroll. This includes anything from commission and reimbursement of expenses to paid time off and attendance. Rather than having to go to 10 different programs in order to obtain this information, it is much easier to streamline it together so that the person who processes payroll has a much easier time handling the finances.
3. Embrace New Technology.
Accuracy and timeliness are two of the most critical components of payroll handling. Without these two elements, you could lose valuable company money. You are risking overpaying vendors and underpaying employees. It costs money and takes time to investigate these errors and then correct them. Therefore, the key to avoiding all of this is automation with a payroll company or a payroll software. This helps to keep payroll and taxes running efficiently and smoothly.
4. Get Rid of the Stubs.
While paper stubs may be beneficial for some, most people just throw them away or never look at them again. They are time-consuming on your end and simply an expense that is unnecessary. Electronic paystubs are more efficient in virtually every way. You'll be saving money for your company, while also providing your employees an additional layer of protection in terms of confidentiality. If an employee wants that paper stub, they can print it out and save it for their records.
5. Look Ahead to the New Year.
The IRS releases tax-related information that will have a direct impact on your payroll processing at the end of each year. Take the time to become familiar with this information, which will include new deduction amounts, changes regarding tax withholding percentages and even new employee forms, early on. By doing this, you will help the payroll process move much more smoothly in the new year.
Although you can tackle payroll on your own or have a designated employee in your company to handle the processing, it may be easier and more cost-efficient if you choose to hire a payroll service to handle your company's payroll. Contact a payroll service company like Blueback Accounting to find out more on what they can offer you.