7 Tips to Make Managing Payroll Easier
Running a business is a rewarding job. Although you may love leading a team and providing job opportunities in your community, managing a business also requires a lot of administrative work — including payroll management.
Without an efficient payroll process in place, you may find it hard to retain the best talent. No employee is going to work for a company where their paychecks are wrong or delivered late!
That’s why you must look to improve your payroll management process. Follow along as Hafen Buckner walks you through seven tips to make managing payroll easier.
7 Tips to make managing payroll easier
To accurately run payroll at your company, you need to have up-to-date records of your employees’ basic information. This includes their mailing added, Social Security number, deductions, benefits, employee classification, and more.
Without an efficient way of tracking and updating this information, your employees’ information may become outdated. Create a process to capture basic employee information during the onboarding process and set up rules for how an employee should notify you of any changes to these details.
Tax season comes once a year, and your company needs to be prepared. Not only will you need to file annual corporate taxes by March 15th each year, but you’ll need to provide W2s and Form-1099s to any employees and subcontractors working for your business.
Your accounting team should set internal deadlines that allow you to meet the important deadlines set by the Internal Revenue Service to avoid any costly penalties.
Depending on the available resources on your team, you may be strapped tight for time. As a result, payroll may fall to the wayside — but it’s important that it doesn’t!
To save your team time, automate your payroll process. Automating payroll processing will help you avoid missing deadlines, save money on severe penalties, and improve the accuracy of your payroll data.
Many companies have made the switch to paperless payroll. If your company still relies on hardcopy checks, it’s time to make the switch to expedite your payroll process.
Most employees prefer checking their pay stubs online for convenience, which allows you to eliminate paper paycheck or pay stubs — saving you both time and money. Plus, it will enable you to reduce your company’s carbon footprint by eliminating paper usage from your payroll process.
When it comes to payroll, mistakes happen. We’re only human. However, the Internal Revenue Service will require you to fix these errors. Left unfixed, your business could face a hefty fine.
As soon as you recognize that an error with your payroll has been made, get ahead of the problem and notify the IRS before it gets any bigger.
Taxes can be overwhelming. With so many rules and requirements to follow, it’s hard to know how to work your way through the process. When managing your company’s payroll, it is recommended that you become comfortable with all the State and Federal tax requirements so you can feel confident come tax season.
The Internal Revenue Service provides various resources, tools, and guidelines to get you better acquainted with the requirement. Staying up-to-date on any State and Federal tax requirements can save your business money in the long run.
When your business is first starting, you probably are the wearer of many hats. As your business grows, it’s best to find an individual best suited to manage your payroll and accounting.
If you’re not quite ready to hire an in-house payroll administrator, consider outsourcing your payroll tasks to an experienced team like Hafen Buckner. Working with an outsourced payroll team will allow you to focus your efforts on the front end of the business while we handle the administrative work going on behind the scenes.