How to streamline your company’s payroll process
Entrepreneurs or human resources staff go through the preparation process of payroll to pay the employees of companies for the work or service they rendered. This activity includes a list of payable workers with their monitored hours worked and calculated exact pay. After collecting this list, they can issue salaries within a reasonable period and document payroll expenses.
The primary purpose of the payroll process is to ensure that all employees will receive accurate compensation for their tasks performed. When business owners comply with this vital activity, they can reduce employee turnover, creating continuous workflow productivity. In addition, they can boost their reputation, which attracts more prospective investors and top talent.
This article provides you with five tips on streamlining your company’s payroll.
Review payroll data
Payroll data are indicators that affect the overall company costs of generating work for pay. This information includes hourly pay rate, piecework compensation, overtime wages, voluntary and mandatory deductions, and gross salary. When entrepreneurs analyse these data over time, they can prepare their budget for their workforce while complying with the law.
When reviewing payroll data, you must identify this activity’s time frame. After that, you have to create a payslip template to ensure that all details perfectly match the ones each employee receives. Then, you have to report the findings to relevant stakeholders and organizational decision-makers to prepare for financial issues and lawsuits that might arise in the future.
Apply for a separate payroll bank account
A payroll bank account is a savings tool that allows business owners to separate funds and only limit access to relevant financial department staff. The primary purpose of this payment channel is to help business owners set internal controls, including privileges and permissions, based on the accounting duty structure. Investing in this account can prevent miscalculations and possible theft and fraud from your in-house employees.
However, take note of factors when choosing a banking institution for your payroll account. You must check their credibility, the minimum balance to earn interest and its rate, account closure fee, and withholding tax for generated interest. You should also select the one with trackable transactions using a downloadable reports feature and data encryption to protect processes.
Automate staff timekeeping
Timekeeping is tracking employees’ entries and leaving time to report the number of hours rendered daily. This activity aims to help employers keep an eye on the productivity of their staff so they can pay them depending on their availability. Similarly, this process is helpful for workers because it allows them to defeat procrastination and motivates them to work efficiently.
When time tracking at your workplace, you have to eliminate manual attendance tracking to reduce fraud in timesheets. Instead, you should automate this process to reduce time theft, lessen payroll errors, boost employee morale, and improve compliance. As you choose a modern timekeeping system, you must look for advanced features like a functioning dashboard, payroll management, mileage tracking, time change requests, and biometric settings.
Manage payroll compliance
Payroll compliance is the ability of businesses to adhere to all state, federal, and local regulations that control how entrepreneurs must pay their staff. When employers violate labour laws, they will receive lawsuits from their employees and damage the overall credibility of their brand. This situation may lead to lost staff, poor productivity, fewer loyal customers, and bankruptcy.
When managing payroll compliance, you must regularly monitor regulatory payroll policies and labour law updates. If you’re outsourcing employees from different countries, you must understand international legislation because each country will have various rules and regulations. Moreover, encourage your staff to voice out any payment concerns and take necessary actions to resolve their complaints to avoid costly lawsuits.
Outsource an accountant
An accountant is an expert who keeps and interprets different transactions on behalf of the company. The purpose of this individual is to prepare ledger entries that include earnings and deductions and record and implement payroll files. When entrepreneurs hire this accounting professional, they can ensure that they will have accurate calculations before distributing payments.
When looking for a payroll accountant, you must consider outsourcing this employee from credible service providers. Instead of having in-house accounting newbies, you can benefit from the expertise of those with years of experience managing a payroll system. In turn, you won’t have to train them and you can save money on errors or late tax submissions.
As a business owner, you should ensure you’re paying your employees properly and comply with labour laws. Thus, consider following these tips to streamline your company’s payroll process. Once you do so, you can avoid getting multiple lawsuits from underpaid employees and reduce employee turnover in the long run.