What to Know About Managing Your Payroll

Learn a few tips to managing your business’s payroll.

Starting a business is not easy, but maintaining a business can be even harder. As you are experienced in what your business offers, there is a lack of knowledge in successfully running a business like HR, taxes, and payroll. If you want to expand your business, but still pick up basic knowledge about the payroll department, here is what you need to know about managing your payroll.

Time-off Policies

Time off policies are usually yours to make. When making time off policies, it is first important to give time off that you are comfortable with down the line. Once you give someone time off, it is very hard to take that back. Also, offer a pyramid of how time off is associated with each employee, basing it off how long each employee has worked for you. If they are a new hire, offer them 1-2 weeks vacation time. If they have been with the company longer, their vacation time goes up each year until you reach your max limit. Not only will this keep employees excited to stay within the company, but you will also have a low turnover rate.

When deciding how much time you want to give off for paid holidays, make the same question as stated before. To save for troubling times, skimping back on paid holidays can save you in the long run. The last time off policy to consider is sick days and personal leave days, which you should follow from other businesses. Again, having a low turnover rate is very important, but at the same time, you don’t want your employees to take advantage of you.

Processing Payroll

Processing payroll will be the most important factor within a business as this is a means of how your employees get paid. If you have a smaller business and don’t have the means to pay for a payroll department, it is often better to do it yourself. There are great payroll softwares on the market that will keep adequate track of getting payroll out on time and having correct information for taxes.

If your business is growing and you find it hard to keep up with payroll, it is important to send it to an outside contractor to take care of. The last thing you need is your employees noticing you are not paying them on time because you are too busy. This takes care of that area and gives you time to focus on what’s more important.

Because you want to submit payroll to an outside contractor, keeping track of adequate working hours of your employees is important. We suggest inputting a time clock so you have the most accurate working hours, and it’s easy for your employees to manage. It also motivates them to come on time.

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 info@www.plcfo.com so that we can assist you with your bookkeeping needs.

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