6 tips for an easier payroll
6 tips for an easier payroll
Processing payroll can be very frustrating and stressful; however, it is a critical and essential part of your business.
Employees are valuable assets and should be paid correctly and on time. Payroll can be a big expense for a company; it can be downright financially costly if mistakes are made.
Making mistakes with payroll can be costly for your employees and your business too. Errors may include overpaying or underpaying taxes, paying employees late or incorrectly, and much more.
Presented below are 6 payroll tips to help smooth out your payroll process.
- Understanding your payroll responsibilities
A clear understanding of your payroll processing responsibilities is vital to success. An employee’s financial well-being is at risk if part of your role is missed or mistakes are made. Payroll departments thrive on clarity and organisation. Every month, you must be aware of any employee bonuses, changes in pay, hours worked and entitlements in order to record and process their salary.
- Choose a system that’s right for your business
Whether you choose to process payroll yourself, use software or outsource to a third party or accountant, it is vital that whichever method of processing payroll you select is suitable for your business and your employees.
While outsourcing payroll to a third party can alleviate a lot of the stress of processing payroll, it can be costly and still require your involvement.
Payroll software can help manage hundreds of employees as it can handle the majority of calculations, deductions and submissions.
Regardless of which method you choose to process payroll, it must be manageable and suited to your individual needs as a business.
- Keep payroll policies simple
The more complicated your attendance, paid leave, commission structure, expenses and mileage, and other policies are, the more complex your payroll process will be. Where possible, keep your policies as straightforward as you can.
Different payroll policies for different levels of your employees or complicated policies will only make your payroll process unnecessarily complex.
Keep your company payroll policies simple, easy to understand and straightforward for all employees. Not only will your employees appreciate the clarity, but it will minimise the volume of administrative tasks that form part of your payroll process.
- Use electronic payslips
Paper payslips are a thing of the past. Most payroll software will automatically generate and distribute electronic payslips to your employees without you having to lift a finger.
- Use a payroll calendar
A payroll calendar can help you stay on track when processing payroll. A calendar can help you keep on top of your pay periods, cut-off dates for commission payments, expenses and mileage claims and help you to manage the tasks that need to be done each month.
With a clear picture of what needs to be done and by when, you can keep track of every stage of your payroll process. This will keep your payroll department on the same page and aware of what has been completed and what is yet to be done to process this month’s payroll.
- Having a partner on your side
Having a software provider that takes the time to understand your business – its challenges and your goals – will enable a better result when choosing the right payroll software.
Thrive are the experts when it comes to finding the right software for your situation – we spend the extra time getting to know you, your staff and what you need to achieve – before suggesting products that we think will be the best fit for your specific situation.
If you want to talk to a team that will partner with you, not just give you a sales pitch, give us a call today and let’s chat about how your business could be even more successful. We hope you have found these 6 payroll tips helpful.
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