Whether you employ two workers or 200, you need to pay your staff in full and on time, no matter what. Payroll processing delays can open you up to lawsuits, resignations, and worse, it can have devastating impacts on the lives of your employees.
It may seem like a relatively straightforward practice, but payroll processing is more than just cutting checks. Without a solid payroll system in place, simple inefficiencies can balloon over time and equate to big losses in productivity, resources, and profits. Studies show that a quarter of all payroll managers admit to spending at least half of their workday on daily payroll tasks.
Being mired in daily maintenance means you aren’t concentrating on efficiency and accuracy—the pillars of an effective payroll program.
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Clean up your payroll process and stop wasting valuable time with these five easy steps:
Map out critical dates on a payroll calendar
Payroll processing is not nearly as simple as it sounds—it involves careful coordination between multiple departments and a close eye on important deadlines. Without the right level of organization, payroll errors occur and employee dissatisfaction ensues. So stay on track by mapping out critical dates on an internal payroll calendar. Viewing the entire cycle from start to finish will help ensure that no loose ends are left untied.
Keep payroll policies simple
Complex workplace policies often translate into complex (and time consuming) payroll processing. Simplifying and streamlining policies related to attendance, leave requests, paid time off, commissions, and expense reimbursements will help alleviate the heavy administrative burden this can create for your payroll team. If more complex policies are necessary, make sure that important details are clearly defined to eliminate confusion and help move the payroll process along.
Review employee classifications
Since employer tax laws and payment methods vary based on whether a worker is an employee or independent contractor, it’s imperative to ensure that workers are correctly classified under Fair Labor Standards Act (FLSA) regulations. In addition, certain types of work visas may exempt employees from paying taxes. A misclassified worker can delay timely payroll processing, require time-consuming corrections down the road, and result in hefty fines and penalties.
Switch to paperless payroll
Aside from the obvious savings in paper and delivery costs, employers who opt to transition to an electronic payroll system also enjoy the benefits of having their payroll data all in one place, the freedom to process payroll on their own time, and the option to easily automate their state and federal tax filings. As an added bonus, the majority of employees actually prefer to review their pay stub electronically.
Outsource payroll processing to a bigger team
While critical to running a business, the simple truth is that payroll, like many other employee administration tasks, never generates revenue or delivers direct value to customers. For that reason, employers should consider outsourcing their payroll by leveraging the skills and assets of a payroll provider. It can seem daunting to entrust this important obligation to a third party, but many payroll providers, like simplicityHR by ALTRES, offer a wide range of payroll and HR services to meet your company’s individual needs.
If payroll is eating up valuable company time, contact us today!
Our knowledgeable team can help ease the administrative burden of not just payroll processing, but compliance, HR, and benefits administration, giving you peace of mind and time to get back to doing what you do best—moving your business forward.
Save up to 90% on payroll processing time
Finance Manager Sharon Santiago reduced payroll processing time by 90% at Waolani Judd Nazarene School with simplicityHR.
This article is for informational purposes only and does not constitute legal advice. Readers should first consult their attorney, accountant or adviser before acting upon any information in this article.