One of the most crucial business operations is payroll management. In fact, it can be a challenge even if your business uses the best software available. However, it requires more than a software to implement cost-effective, efficient, and accurate payroll management processes.
Fortunately, there are many ways on how to manage your payroll system properly and these include the following:
1. Use Time Tracking And Employee Scheduling Software
When processing payroll, accuracy is very essential and it starts with monitoring your employee attendance by setting up time clock software. Take note that even the simplest error may create problems, which may result in poor feedback for the business.
By using time tracking and scheduling software, it can help save time, improve the productivity of your payroll staff, and increase efficiency, which ensures accurate payroll reports.
At present, there is a variety of time tracking and employee scheduling software, which offers seamless integrations for simple and quick migration of employee time data. This kind of software also enables you to calculate automatically and manage paid time off and employee leaves. Depending on your chosen software, some also feature a downloadable mobile app that sends alerts to employees regarding their work schedule.
2. Automate Your Payroll Process
It takes a lot of money and time to process payroll and once done manually, it’s susceptible to mistakes that may result in fines. This is true for all growing businesses that have an increasing number of employees. With limited payroll staff and HR, payroll processing may be a challenge. Automating the payroll process is the simplest way to keep up with the time-consuming tasks.
You can automate your payroll process by using accounting tools like payroll software, which enables you to calculate payroll taxes, create paychecks, send deposits, and so on.
3. Hire Qualified Payroll Staff
Payroll staff should handle the demands of their work or they’d risk making some errors, which can lead to job dissatisfaction and expensive compliance penalties. Therefore, it’s crucial for businesses to create a payroll team with skills needed to handle the level of the payroll tasks that your company requires. Take note that it doesn’t just refer to the candidates with great credentials, but also to those who can adapt to your work culture and learn quickly.
There aren’t any essential industry standard qualifications for payroll positions, but you may always look for essential payroll accreditations, which prove their math skills. Other important qualities may include integrity, experience, and adaptability.
4. Make A Payroll Calendar
Payroll calendars help employees understand when they’ll be paid and when the timecards are due. Moreover, it helps payroll staff with executing and planning payroll tasks. Many payroll programs can help you make your own payroll calendar, but you may also use an Office Suite program or a spreadsheet to set up one.
When creating a payroll calendar, there are several guidelines that you should follow. One of these is to use a regular calendar to analyze particular dates that could require a particular lag to give enough time to process payroll. It’s also a good idea to use colored fonts for emphasizing particular information like early time card deadlines because of a holiday.
Payroll calendars must show every fiscal year pay data. These simplify payment processing and reduce employee confusion regarding when they’ll be paid and the time frame that the paycheck covers. Once you have a payroll calendar template, save it for you to updater it whenever necessary.
5. Document Your Payroll System
One of the payroll tips you may consider is documenting your payroll processes. It may help when auditing and analyzing your payroll system because it highlights every step and makes it simpler to know the weak points in the process. When you make a payroll process that works great for your business, remember to document such procedures and share them with your payroll team to ensure that your members understand their role.
6. Audit Your Payroll System
It isn’t unusual to hear occasional complaints regarding payroll computations. But frequent incidence is an indication for the need to conduct audits of the whole payroll process. It’s true for the companies that make use of manual timecard systems as they’re exposed to high risk for any discrepancies. In addition, automated systems may be affected by data entry errors like recording the tax status of the new employee or inputting old pay rates.
7. Consider Payroll Training
Managing your payroll system properly may not be easy. Luckily, there are payroll training programs that you can consider for you to be more knowledgeable about effective payroll management. Just make sure that all of your payroll staff will participate throughout the training, so they can determine the key to an efficient payroll system.
Effective payroll system management can benefit you and your business a lot. One of these is that you’ll be able to maintain high employee retention. Plus, it means more convenience and peace of mind on your side. So, make sure to keep in mind those ways mentioned above to manage your payroll system properly and see the difference.