Payroll management can be a difficult task. Although payroll solutions should be simple and straightforward, it is not the case with many small businesses. As the business gradually grows up, the manual method of tracking, reporting, and recording becomes quite cumbersome.
There are some specific tips that a small business can follow to excel in payroll management tasks. It is significant to know exactly what changes are necessary and how to implement them. To make overall payroll solutions more effective, one needs to address the entire process, including technology and other related practices.
Below given are the ten small changes that can have a huge impact on payroll solutions:
Streamlining the Payroll Systems
It will be problematic if the payroll software package does not match the company’s accounting system. One needs to simplify, consolidate, or streamline the existing payroll systems.
This is a very efficient method to improve the entire payroll management process. It is quite helpful to review all the steps involved and take time to analyze the process from a different perspective.
Combining Different Pay Schedules
A lot of companies maintain different pay schedules, for instance, weekly or bi-weekly pay periods, monthly paydays for management, etc. This may lead to lots of errors in the payroll process. It is helpful to minimize pay cycles. This will prevent the duplication of multiple processes.
Hence the payroll department will be able to operate more efficiently. Every employee must get payment on the same pay schedule. This enhances efficiency. Thus, the payroll department will be able to focus on one task at a time.
It is much easier to maintain a single pay schedule as compared to multiple pay schedules. This will also minimize the chances of mistakes during the payroll process.
Upgradation of the Payroll Software
One should upgrade the payroll software to quickly streamlining the payroll processing of his/her business. There are many new, advanced, and state of the art payroll technology that helps in reducing the time spent on payroll processing. This will also ensure a higher level of accuracy in data entry and processing.
Maintenance of Regular Training and Education
It is significant to continue training and education, especially for payroll professionals and HR. It will be wrong to say that payroll management has been a static profession. In fact, it is ever-evolving and so much dynamic. Because of changes in the tools, services, available technologies, rules, and regulations, a professional payroll needs to be always vigilant and up-to-date.
Also, the role of an HR manager is expanding rapidly. It is becoming an ever-evolving job profile. This shift is taking place because of the changes in business, technology advancements, and so on. Thus, ongoing education is extremely necessary for HR professionals.
Opting for a Paperless Payroll Process
Because of advanced technology, businesses now have access to the paperless payroll process. This can prove helpful in expediting the payroll operations. A business organization which is trying to go green, maintain the security of the company’s data and cut on expenses, will find paperless payroll process really beneficial.
One can achieve a paperless payroll process by eliminating timesheets, time cards, physical paychecks, and paper pay stubs. Most of the employees nowadays prefer to receive their payments electronically. Thus, if an organization implements the paperless payroll process, then it will be a win-win situation for everyone.
Outsourcing the Entire Payroll Process
If a small business owner does not have enough time and resources to invest in the betterment of the payroll system, then he should think of outsourcing the service from a professional, full-service payroll management company. This strategy will prove to be quite cost-effective and time-saving too.
The latest trend in payroll management is to outsource these functions from a payroll management service provider. Both small, as well as large businesses, are indulging in outsourcing payroll services. This step allows them to cut their expenses to a great extent.
They have realized that their savings thus outweigh their investment. Larger companies are more likely to opt for outsourcing payroll management services.
Latest Updates About the State and Federal Tax Requirement
It is very critical to stay updated about the wide array of IRS and other government agency compliance rules, policies, and regulations. A busi8ness which fails to file certain forms or meet the required deadlines can face devastating consequences.
Smaller businesses, especially face a higher amount of risks. It is the necessity of the business to file payroll taxes. But one can avoid the excessive burden associated with it.
One should try to make it a compulsory element of the ongoing payroll management processes to review and have knowledge about the latest State and Federal payroll, tax, employee regulations, and modifications.
Conducting Regular Audits
If the payroll department is vulnerable to frequent employee complaints, then it is high time to conduct an audit. The best way to recognize a problem is to conduct regular audits. During the audit, one must ensure that all processes are working without any obstacle or hassle. There should also be proper testing of payroll software.
Transparency in Payroll Policies
It will be very difficult when an employee is unable to understand the payroll system correctly. If company pay policies are not accessible enough for the employees, then there is a higher chance of misunderstandings. Hence, there should be a transparent payroll policy in the company. The transparency will clear out any chances of doubts and misunderstandings.
Creating a Monthly Payroll Calendar
It is essential to create a monthly payroll calendar and follow it with the utmost strictness. Moving deadlines, again and again, compels the payroll managers to go through stress and lots of confusion. This, in turn, can result in mistakes and errors. Therefore, it is advisable to create a calendar. One must add all the steps of the process in the calendar. The last thing to do is to stick to the calendar.
If business brings in the above-given ten changes in its payroll policy, then it will definitely be able to climb the ladder of success soon. It is essential to keep in mind these significant points.
I’m currently working as a Chartered Accountant with Payroll Outsourcing Company. I have a great passion for outsourced accounting services. In the previous couple of years, I have worked with big and small clients across numerous continents. I have a keen interest in CPA payroll services, outsourcing accounts receivable, BPO outsourcing, accountants outsourcing, outsourcing bookkeeping, offshore Back office services, etc.