End the Grind: Tips for Efficient Payroll Processing
Payroll processing may not be the most glamorous aspect of a business, but it’s a complex and extremely necessary element of a successful operation. Because payroll has a specific level of importance within a company – large or small – a certain amount of respect is in order regarding the intricacies involved.
Finding ways to reduce stress, time involvement and margins of error is critical in the payroll processing scenario. Thus, there are a number of clever tactics to consider in order to make the process more efficient, including:
Get organized - Payroll processing has a variety of moving parts, including due dates for allpayroll tax deposits, quarter and year-end activities and processing tasks, such as check roll-out dates and distribution of reports. To help keep track of it all, create a to-do list of sorts in calendar form. Looking at the whole process spread out from start to finish will help the payroll processor identify when, where and how all the loose pieces come together within each cycle.
Simplify Throughout - Payroll processing has to take into consideration other factors within the company, such as attendance, paid time off, commission, expense reimbursement, etc. To make the filing process as streamlined as possible, keep the these kinds of exterior policies simple and straightforward. This will make it easier on the payroll processor, as well as employees.
Embrace Technology - The payroll gurus at Webster Buchanan Research note that when it comes to payroll processing, timeliness and accuracy are critical. Having these two elements under your belt helps the business avoid loss through overpayment or creating unnecessary tension with employees through underpayment. These elements also reduce the cost of administrative resource required to field inquiries, investigate and correct errors.
To get a firm grasp on payroll processing, the pros suggest automation. As Webster Buchanan Research explains, the more automated your payroll system, the better. When it comes to payroll processing there are virtually endless options, from a full-service payroll company to payroll software, that will help you with running payroll and payroll taxes. Thus, finding the right fit for any business is literally a click away.
Snub the Stub - It's well-documented that paper pay stubs are time-consuming and an unnecessary expense. What's more, while the norm remains that employers still provide paper pay stubs, going the electronic route is hands-down more efficient. Digital stubs save the company money and provide an extra layer of confidentiality for employees.
Don't Forget to Look Ahead - Start each year on an organized note by doing your homework. Each year, new information is released that impacts payroll processing. This info - which is typically released by the IRS by early December - includes income tax withholding changes, new benefit charts or deduction amounts and new W forms. Get familiar with these essentials early, and sail smoothly through the next 12 months.