Nearly 40 percent of small business owners say that bookkeeping, including payroll processing and taxes, is the hardest part of owning a business. Are you looking to take this stress out of payroll processing? If so, we have some tips for you.
You shouldn’t spend hours or more of your time trying to complete payroll. Keep reading to learn ways to help you complete the payroll process without frustration and time.
Table of Contents
1. Consolidate Pay Schedules
If you have both salaried and hourly employees, you should not have different pay schedules. For example, some companies pay salaried employees bi-weekly and hourly employees weekly. This might sound like a great idea, but juggling the two schedules sets you up for errors.
You should pay all employees on the same set schedule. This will help you cut payroll costs and improve employee satisfaction.
2. Use Direct Deposit
Paying employees by using direct deposit saves a significant amount of money and labor costs. By using direct deposit, your employees’ pay goes directly to their bank accounts through an ACH file.
By using direct deposit, you can eliminate some expenses like printing costs, stamps, printed checks, and envelopes. You also won’t need the labor to stuff and mail paper checks. You can also allow employees to view their pay stub materials.
Use a check stub maker, so employees can view their pay and double-check their pay and deductions.
3. Use Technology to Manage Compliance
It is hard to keep employees up with the constantly changing compliance regulations. Applying and understanding legislative changes can be rather time-consuming.
By using technology, you can automate your tax calculations to save time and reduce risk. This is also a great idea if you have plans to go global with other regions and their changing regulations. You can automate your tax rules in all these jurisdictions to keep up with changes.
4. Use Payroll Processing Software
Payroll processing software is not difficult to use, and it is not as costly as you think. Even with subscription fees, the software pays for itself because you get more time to focus on your company.
You can also use software to help your employees track and request paid time off. You can also automate scheduling, check employee time, and have all this information in one central location.
5. Centralize Your Records
Speaking of a central location, you need to keep your employee records up to date. You don’t want to be sorting through stacks of documents and trying to scroll through massive spreadsheets to find the information you need.
You also should have one system to find and enter this information to make it more efficient for you or your payroll teams. By storing all information in one place, you reduce the risk of losing important information and you also save time.
Learn How to Process Payroll With Ease
Running a business is fun and can be challenging. Use these tips to help you with your payroll processing, so you can take that stress away. By investing in software, automating your processes, and centralizing your records, you can save yourself time and money. There are some great payroll processing services available if you need additional help.
Need more business finance advice? We’ve got you covered. Check out our Corporate Finance section.