Staying atop of payroll is processes that can be both time consuming and stressful, even more so if you take care of your payroll in-house. In no time at all this can become a nightmare for business owners.
Irrespective of the size of your business, it is important to have an organized payroll system to safeguard your business from potential HMRC penalties and to make sure that your employees are paid on time.
Here is a list of 9 essential tips and tricks to simplify managing payroll processing:
Generally, for most employees it is simpler to manage employees who are on a salary. If your employees are kept on a salaried basis, it takes out the stress of determining how much they are paid every month and keeps everything constant.
2. Fix how often your employees are paid
As an employer you need to fix a general and uniform pay period for your employees. Pay periods can be on a weekly, bi-weekly or a monthly basis. This will assist you in staying organised and smooth down payroll processing for you.
3. Categorise your workers
Another important essential to strictly adhere to is to properly categorise your workers. Irrespective of you hiring full-time employees, interns or independent contractors, if the person is performing tasks for your company, they generally will have to be categorised as your employee.
4. Choose the best software for your business needs
While picking out payroll software for your company, try and go with an option that is hosted on the cloud. This will simplify the process of accessing all the payroll related information in one place, whenever you need it.
Moreover, invest in a management program that eliminates stress out of payroll processing for you. Software that integrates the system, amplifies collaboration and enhances the flow of communication during payroll processing is an ideal choice.
5. Save both time and money by simplifying your process
Studies carried out have shown that many business owners spend three to five hours every month on payroll processing. To ease out tasks for yourself, employ an HR task manager as this tool allows employers to keep everything in one spot which saves both time and money in the long run.
6. Keep a record of everything
Another brilliant way to make the payroll system simpler is to keep all the records and documents in one place. In fact there are laws that require employers to store records for a specified period of time. Always keep promotional pens and notepads ready to make note of anything that crops up. You can later on record it all in the system.
7. Automation of taxes
Find out if your payroll software automatically takes care of the taxes that you are supposed to pay as an employer. This can prevent you from forgetting about payroll tax deposits and tax deadlines and make sure that the process is completed in a timely manner.
8. Factor in raises and benefits
Do you wish to simplify the process of giving raises to your employees? Consider giving them additional benefits as a means of reward or appreciation. You can dispense a stipend for childcare, additional insurance or a new laptop to your employees. These are few tax-free options which you can present your employees with as it will simplify tax related paperwork on your end.
9. Don’t submit payroll without cross checking time cards
In case you have employees on hourly basis, you should double-check the time cards when punching in details in your payroll system. Depending on the type of time and attendance system that you use, employees may at times make mistakes. These mistakes may include forgetting to clock in or out at the beginning or the end of their shift.
These may result in them being underpaid. Even if the employees commit mistakes, it is the duty of the employer to make sure that the correct pay is credited in accounts of every employee. Along with cross checking for these errors to ensure correct pay, you also need to keep in mind to include pay for mobile employees. This can comprise of travel time and reimbursement of travel money.
Managing payroll requires patience, organisation and open communication across the entire company. By incorporating these tips you will be able to make your payroll system more efficient and easy to work with.