There’s no question that trying to keep up with all payroll activities can be a stressful and time-consuming process. This is especially true if you happen to handle all your payroll activities in-house. As your staff and business grow, the entire process can turn into a real nightmare.
According to a recent survey, up to 60 percent of all small businesses still handle all of their payroll duties internally. It doesn’t matter how big or how small your business is, you need to have an organized, efficient payroll system to use to help protect you from serious penalties and losses.
While a great way to minimize the hassle of payroll each month is using professional software, such as Accuchex, there are some other tips you can implement, as well. Keep reading to learn what these tips are.
1. Determine if Your Workers are Paid by the Hour or Receive a Salary
For the majority of employers, putting their workers on a salary is much easier to manage. With salaried workers, there isn’t as much stress figuring how much each person receives on a monthly basis. It also helps to keep things consistent.
However, if you do have employees that are paid by the hour, make sure that you have a concise system in place regarding how you keep up with compensation and time.
2. Figure Out How You Plan to Pay Your Employees
As an employer, it is up to you to figure out when your employees are going to be paid. You can choose to pay once a month, bi-weekly, or weekly, as these are the most common arrangements. By figuring out how often you are going to pay your workers, you can make the process more organized and ensure everything runs much more smoothly when pay time comes around.
3. Make Sure Workers are Properly Classified
When it comes to your workers, you also need to figure out how you are going to classify them. It doesn’t matter if you hire independent contractors, interns, or full- or part-time employees, you need to determine how they are classified.
If you need more information about how to classify your workers, you can utilize the Employer’s Tax Guide, which provides information and guidance for any business.
4. Simplify the Process You Use
Up to 27 percent of all small business owners have reported that they spend between three and five hours each month just handling payroll. Also, up to 33 percent of all employers spend over $500 to get payroll done.
If you want to simplify this process, then it is a good idea for you to invest in the services of a payroll manager. By doing so, you can keep everything together and minimize the amount you are spending on getting payroll out to your workers each month.
5. Be Sure to Track Everything
If you want to ensure that payroll for your business is as simple and streamlined as possible, then it is a good idea for you to keep documentation and records for everything together. The fact is, there are actual state and federal laws that require you to maintain some records for a determined amount of time.
If you want to simplify your business’s payroll processes, then it is a good idea to use the tips and information here. Doing so will help you save both time and money.