Whether you have four employees or 500, payroll may be one of the most critical operations of your business. If you’re running your own business and managing payroll, check out below tips to help make it as simple and painless as possible:
1. Align or Combine Your Different Pay Schedules
Stay organized by decreasing pay cycles and supporting the same payday for all employees. Maintaining a single payroll schedule is more effective and can avoid confusions. Create a payroll calendar to help you stay on track when processing payroll.
2. Keep Your Payroll Policies Simple
Try to keep your company payroll policies easy to understand and clear for all employees. Because the more complicated your attendance, paid leave, commission structure, expenses and mileage and other policies are; the more complicated your payroll process will be.
3. Upgrade Your Payroll Software
There are lots of software out there to make payroll more manageable. Select and install the right software suited for your business. This tool can automate redundant payroll tasks such as updating timesheets, filling up hours, forms, employee time off, and much more.
4. Opt for a Paperless Payroll Process
Take advantage of improved technology, “go green", and cut costs. Nowadays, most employees prefer receiving electronic payments.
5. Obtain Proper Training
Educate yourself and keep track of all the deduction rules, understand the tax procedure, and more to effectively carry out payroll management services.
6. Consider Outsourcing
To save time, you may turn to the experts. Outsourcing your payroll functions can reduce your stress level, and give you the opportunity to focus and grow your business. If you need a referral to a great payroll outsourcing company please do not hesitate to reach out to us.
The bottom line is that payroll is one of the most important functions of your business. There are steep IRS penalties related to noncompliance for payroll taxes and forms. If you’re not well versed in payroll or it simply isn’t your thing, our team at Allison L. Reynolds, CPA PLLC is here to help!