If you're looking for the best payroll advice for starting online business, small business, startups, and entrepreneurs. Explore these essential tips to manage your small business payroll hassle-free.
Payroll management is a management system to process employee paychecks including salaries, bonuses and deductions, maintaining adequate documentation, and putting up with required labor laws.
If you have started a small business, you might wonder if you’re doing it right. So, here are some tips to manage your small business payroll effectively.
8 Small Business Payroll Tips
Below are the best payroll advice small business owners should know during tax season:
1. Payroll calendar
Creating a payroll calendar is one of the best payroll advice for small businesses.
It helps the payroll staff with planning and implementing the payroll tasks. It also helps the employees understand when they will be paid.
Since the payroll calendar shows all the fiscal dates, it reduces confusion among the employees and in turn simplifying the payment processing for the organization.
Once you have a template of a payroll calendar, you can then update it wherever it is necessary.
2. Consider payroll training for the staff
Although the HR and payroll departments have distinct roles in an organization, they also share certain similar functions.
Thus, considering the payroll training for HR as well as the payroll departments is quite beneficial.
It does not just help prevent conflict in the organization by avoiding misunderstandings between the HR and payroll workers but also improves collaboration by creating a more cohesive team.
3. Select the right accounting software
While selecting payroll software for small business, it is extremely important to take into consideration all the features of the software before buying one including its mobility, integration capabilities, user-friendliness, and employee access.
If you are finding software that is good enough but difficult to use, consider taking a short training course.
This will later save your time and will help you get more efficient with the processes.
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4. Stay updated on the latest payroll rules
Business owners must be aware of all the labor and employment laws to comply with them.
Never make an assumption that rules won’t change. The rules keep on changing almost all the time.
Staying updated and complying with these rules will help you save time and money in the long run.
There are a number of sources that can help you stay updated, including government websites.
There are also a number of news sources that keep you updated with the changes in policies or any payroll related changes.
You can also have an in house payroll helpdesk that will also help the employees to stay updated with their payroll related queries.
5. Audit your payroll process
We often hear occasional complaints about payroll management. Thus, there arises a clear need to conduct regular audits for the entire payroll process.
Although automated systems can also get affected by certain data entry errors, it is mostly the case for small businesses that process their payroll manually.
You should audit the entire payroll process or hire a payroll administrator to verify the payroll, test plugins to ensure the software is integrated and make sure the values match across all records.
6. Automate the payroll process
Payroll processing takes a lot of time and money when done manually. It can also lead to errors in the documentation that might cost you a huge amount of money later.
Payroll processing becomes a challenge with a limited staff, thus automating your payroll process is the best way to keep up with this time-consuming process.
With an automated payroll system, you can process the payroll with least or no errors. This will also save your time considerably and the entire process will be seamless.
7. Outsource your payroll tasks
The employees must be paid accurately on time to avoid problems. This can become a challenging task for an organization where payroll processing takes a lot of effort and time.
At this point, you should consider outsourcing your payroll tasks to a professional payroll company. Since it is their full-time job, it would save you a lot of time and paperwork.
It not only minimizes the chances of fraudulent activities but also cuts down the costs of running the payroll yourself.
8. Set a budget
Setting a budget plays an important part in planning a payroll. Keep a check of all the employee wages and their taxes and insurance.
Since changes in the economy have a direct impact on employee payroll costs, it is important to take all these aspects into consideration.
There is no fixed percentage that you follow while budgeting for the payroll. Instead, determining your necessary costs and eliminating the ones that are not required is the way forward.
You can manage it like a pro by a simplified 4 step process which includes, organization, investigation, information, and communication.
To sum it up, according to DSD, payroll processes account for up to 35% of an average HR department’s time.
Handling payroll is an essential part of a business but if you follow the aforementioned steps, you can make your way through this significant task hassle-free, saving ample time.
We hope you liked the above payroll advice for your business to maximize growth.
Are you looking for a professional payroll small business services? Get in touch with eBetterBooks accounting and bookkeeping experts today!