For business owners and organizations with employers, payroll is a significant task. It is an equally time-consuming task requiring compliance with various laws and regulations. Payroll affects every area of a business from employees’ trust to the financial stability of the company. Whether the payroll process is done manually or through computer software, it is essential to eliminate errors and ensure 100% accuracy by maintaining the necessary procedure or checklist for the payroll period.
Before processing starts:
If ‘you’re looking for effective ways to make payroll less time-consuming, here are useful ideas you can put to good use.
Employee onboarding is the key to effective payroll processing. The moment a candidate accepts an ’employer’s offer, the onboarding process begins as a company employee. Right from company completing new hire paperwork to learning the company software and systems. If you hire employees, empower them, and encourage them to do relevant paperwork. A top payroll system lets employees to “onboard” quickly.
Given below are employee onboarding best practices crucial for payroll processing
Integrate Employee Benefits
Rather than hiring different companies to handle benefits, some payroll systems seamlessly integrate benefits solutions in one dashboard. In such a way, there is no need to re-enter employee data in multiple systems. The integration of deductions and payments can also save accounting time and hours.
Ensure Benefits compliance in Payroll Processing
It can be often overwhelming for small businesses or firms to ensure compliance with mandates and regulations across different states in the US.
Delegate Timesheet Entry
Require non-exempt employees to enter their own time. All you need is approve it, and the right timesheet application will take care of the rest. A great timesheet application lets employees record time from multiple options such as…
Eliminate the Annual ‘Worker’s Compensation Audit
Collaborate ‘worker’s compensation vendor to your accounting system. This step will eliminate the time-consuming annual reconciliation report required by ‘worker’s compensation insurance company and avoid large yearly payment because the insurance will be removed from each payroll cycle.
Reduce the Frequency of Payroll and synchronize Pay Schedules
Some companies have maintained varying pay schedules for employees such as Weekly, Biweekly, Semi-monthly, or monthly. Part-time employees might receive paychecks once a month. On the other hand, full-time workers get paid bi-weekly. Multiple payment cycles result in extensive administrative work for payroll staff. By synchronizing all pay schedules, team can spend less time processing paystubs and sending out checks. While it might not be always possible, but if you can pay employees less frequently, you might be able to reduce payroll time and related resources significantly. Reducing payroll frequency increases cash flow.
Here is the checklist to maintain for payroll processing
Get all paperwork completed for new hires?
Checklist which includes information regarding:
Do you have any employees terminating? If so, has the distribution ”Stop Date” been entered?
Keep Up with Tax Requirements
Payroll can often be a maze as state and federal tax requirements consistently change as the IRS and government agencies update compliance rules and regulations. In such a dynamic scenario, create a process to stay up-to-date of the latest requirements for payroll processing. Failing to do so could be a costly headache. Alternatively, you can find a payroll outsourcing companies that will deal with compliance for you.
Upgrade Your Payroll Software
With newer, state-of-the-art integrated payroll software such as Xero, QuickBooks, Clover, and more, businesses can streamline the processing of payroll while ensuring greater accuracy in data entry and processing. Integrated platforms help reduce the time spent processing payroll. However, a computer program alone will not solve all your process issues.
Why Outsource Payroll Processing?
As a business owner, if you are running short of both time or resources in building an entirely new payroll system or updating an existing one, outsourcing to a professional payroll management company can be a strategic move and cost-effective option. To get a competitive edge, find a reliable payroll outsourcing partner consisting a team of dedicated, trained, and experienced payroll professionals focused on providing fully managed payroll services.