One of the most important tasks of any business is to pay their employees on a consistent and timely basis. However, if you are a small business just starting out, that might be easier said than done. Having an efficient payroll management system involves patience and having an extensive knowledge of state and federal tax requirements. Luckily, there are a few simple tips to improving your payroll process so that your employees can get paid consistently and accurately.
Minimize Pay Cycles
In some companies, it is common to pay employees at different times depending on their level or rank. It is common for management to be paid on a monthly basis and midlevel to entry-level employees to be paid on a bi-weekly basis. However, it is more efficient to pay every employee at the same time. This prevents the payroll department from duplicating multiple processes so that they can focus on one task at a given time. Combining pay schedules also decreases the chance of errors made during the payroll process.
One of the most effective ways to improve your payroll system is to eliminate paper during the payroll process. You can start by eliminating time cards and timesheets, physical paychecks, and paper stubs. Having an online portal system for payroll makes the paying your employees easier, it also allows your company to go green. It is also in your employees best interest for them to receive their pay stubs and pay information electronically. Make sure that every employee can be paid through direct deposit.
Stay Up To Date On Tax Policies and Requirements
It is critical that you stay up to date on the current IRS regulations and tax laws. You need to make sure you are filing your payroll taxes correctly and on time. States and Federal tax regulations are always being updated, so make sure you are aware of the changes when you are filing.
PL Consulting Can Help You Plan Your Budget!
PL Consulting offers a diverse range of bookkeeping and other financial services. Each of our services is customized to fit the needs of our client and his or her business plan. Our team can help you with each step of your business from organization, to budget, to financial maintenance. We are located in Pikesville at 119 Old Court Rd Baltimore, MD 21208. Contact us at 410.764.3731 or firstname.lastname@example.org so that we can assist you with your bookkeeping needs. Remember to stay up to date with everything PL Consulting by following us on our social media platforms via Facebook, Twitter, and Google+.