5 Essential Payroll Tips
Do you own a small business? Yes? Then you are probably well aware about the pain of doing payroll. Unless you have got a financial background or training, payroll can seem like a tricky task. To some business owners, payroll is a necessary task that they do not look forward to as they fear the risk of doing something wrong. No one wants to make mistakes with payroll as employees are often highly dependent on getting paid on time in order to meet direct debit and other financial arrangements. Are you one of those managers or business owners who detests even the mere thought of doing payroll every week/month? This blog post offers you 5 essential tips to make payroll a much easier and faster task to conduct.
1.Decide on a Set Pay Period Interval
Every employer needs to decide on a set pay period for their employees. It is important to do so in order for you and your employees so that everyone can plan around the designated pay period. Typical pay periods for both salaried and hourly rate employees can be weekly, bi-weekly, or monthly. Ensure to mark any bank holidays in your calendar which may interrupt a pay period to ensure that you make provisions that week to pay employees at an earlier/later date as agreed with staff.
2.Develop & Communicate a Clear, Pay Policy
Most payroll issues arise because of misunderstandings and lack of communication between employer/manager and employees. Employees may often encounter confusion about a process, e.g. filling out their timesheet, cut-off dates etc. Come up with a policy that describes the bases for giving bonuses, rises and promotions. Create a clear, concise FAQ’s type document to answer their questions and provide a guide to all staff regarding the payment process.
3.Use Payroll Software
Payroll software can be a blessing in disguise for small business owners and managers. For a relatively inexpensive monthly fee, you can avail of a payroll software program which can be integrated with your management system. All the staff details you require to conduct payroll are readily available to hand and using payroll software eliminates a number of the steps usually involved in this daunting task.
4.Keep a Record of Everything
It is advised to keep hard and soft copies of any payroll records and documents. There are some laws which require employers to hold onto some records for a certain period of time such as completed W-4 and W-2 forms. Try to keep all soft copies in one folder and keep hard copies stored safely in the office so that they can easily be referenced to if ever required.
5.Create & Issue Pay Slips
Whether by e-mail or via a paper slip, it is important to issue pay slips to employees in advance of wages being paid. That way, employees can raise any potential issues with you before wages are paid into their bank accounts – this can save both parties a major headache!
By following these few examples, you’ll be better prepared when payroll times comes around, and the end result is that everyone in the workplace will know when to expect it.