Getting your payroll right and delivered on time each pay period is a must. While this may seem like an afterthought for large companies, it can actually be challenging for small businesses, especially those that are experiencing rapid growth and are changing quickly. Not paying your employees on time can create an avalanche of issues.
The good news is that if you are worried that your payroll process is becoming too complex and difficult to manage, there are a number of easy and effective ways to simplify the process.
5 TIPS TO SIMPLIFY YOUR COMPANY’S PAYROLL
1. SIMPLIFY YOUR PAYROLL POLICY:
Over time, things can become muddled and more confusing than they need to be. Take some time to review your policy to ensure it is clear and concise in terms of how employees are paid, commission, expense reimbursements, sick days, and more.
2. PAY EVERYONE THE SAME WAY:
Paying all your employees (and contractors, if applicable) on the same day, using the same pay structure and process will make things easier to manage. Consolidate your pay models for simplicity and uniformity.
3. PROVIDE PAYROLL INFORMATION ONLINE:
Your employees will have payroll inquiries. They will have questions about the payroll policy and guidelines, and request access to previous pay information, all of which can take up a lot of time. Providing online access to this information and encouraging your employees to check online first, can save time and simplify payroll information requests.
4. USE DIRECT DEPOSIT:
This is much more efficient than cutting checks. It’s faster, accurate, and is more convenient. Employees will know that their pay will be in their account on the same day(s) each pay period.
5. OUTSOURCE PAYROLL:
Most small businesses don’t have a payroll department; they have someone who handles the payroll function. Payroll processing can be complicated and takes up a lot of time and resources. Rather than trying to do it yourself, or having an unqualified employee handle the process, outsourcing payroll will free up valuable time and it ensures it gets done correctly. Outsourcing also reduces the need for you to invest in specialized software programs and other resources to execute payroll. Plus, it will be one less thing you have to manage.