Paying your employees consistently and promptly is important for your business. Small businesses and startups may struggle with an efficient system. A streamlined payroll process is something that any business needs to have.
Choose a Paperless System
Many small businesses still use paper checks, time cards, and paper stubs. An online system for payroll makes paying your employees easier. This is also an opportunity for your business to become sustainable.
It is in your employees’ best interest for them to receive their pay stubs and pay information electronically. Make sure that you can pay every employee through direct deposit.
Choose a system that integrates your time log software and payroll software. This minimizes the time spent manually logging hours into the payroll system. All the data transfers automatically. Because of this, human error is less likely.
Minimize Pay Cycles
Some businesses pay employees at different times depending on their level or rank. It is common for management to be paid monthly 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. Combining pay schedules decreases the chance of errors made during the payroll process.
If you own a small business and do not have the means to pay for a payroll department, it is often better to do it yourself. There is great payroll software that will keep adequate track of getting payroll out on time. Find one that has the correct information for taxes.
Stay Current on Tax Laws and Policies
You must stay up to date on the current IRS regulations and tax laws. 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.
Get Payroll Help
If your business is growing and you find it hard to keep up with payroll on your own, it is important to send it to an outside contractor. The last thing you need is your employees noticing you are not paying them on time because you are too busy. This gives you time to focus on what is more important to running your business.
If you submit payroll to a bookkeeping firm, keep track of your employee’s working hours. Input a time clock so you have the most accurate data. It is easy for your employees to manage the time clock, and motivates them to come to work on time.
Are you considering outsourcing your payroll process or have further questions? PL Consulting is here as your business’s go-to resource for bookkeeping. We customize our services to each of our clients and their business plans. Call us at 410.764.3731.