It is not simple to stay on top of payroll and this process can be very time consuming if you don’t have enough experience. As a business owner, you need all the help you can get when it comes to this task. That is why we have prepared a couple of tips that should help you with the payroll process.
After you do that, it is time to make the payments to employees, and set aside the deducted amounts. Once you are done with the entire process you must pay attention to recordkeeping. It is essential that you keep track of everything.
You can choose to handle things internally. This means that you should hire someone in-house to take care of this. Payroll is something that can be easily handled by your finance team.
It is also possible to hire an external accountant or bookkeeper to help you with your financial records. If you have a larger business you might want to consider hiring a payroll service provider. They provide services for business of all sizes.
Make sure that you hire someone who is professionally qualified. You will be responsible for everything that goes wrong.
The best way to get rid of all these are to invest in HR task manager. Such tools help employer to keep track of everything at the same place.
9 Top Company Payroll Tips to manage payroll better
Let's start and see some of the top tips which you should follow to make it better and employee satisfied.#1 Steps of the payroll process
The first step of the payroll process is calculating the earnings for each employee. You need to calculate everything, and add things such as overtime hours. In most cases you also need to calculate the deductions and taxes.After you do that, it is time to make the payments to employees, and set aside the deducted amounts. Once you are done with the entire process you must pay attention to recordkeeping. It is essential that you keep track of everything.
#2 How frequently are you going to pay your employees?
There are different options for payment. Each business needs a different pay period and you should decide how often you will pay your employees. You can choose between weekly, bi-weekly and monthly pay periods. After you decide on a pay period, things should become simpler.#3 Who will handle payroll?
As a company you should also decide who will take care of payroll management. While you might handle things on your own at first, you need to learn how to delegate the work. There are various ways to do that.You can choose to handle things internally. This means that you should hire someone in-house to take care of this. Payroll is something that can be easily handled by your finance team.
It is also possible to hire an external accountant or bookkeeper to help you with your financial records. If you have a larger business you might want to consider hiring a payroll service provider. They provide services for business of all sizes.
Make sure that you hire someone who is professionally qualified. You will be responsible for everything that goes wrong.
#4 Keep all records
Financial documents are very important for your business, including the ones related to payroll. You must keep track of everything and each document should be preserved for at least a couple of years. Documents can also be used for tax deductions, which is another reason why you should keep them.#5 Payroll taxes
Payroll taxes are another confusing subject. Payroll taxes need to be calculated correctly, which can be a bit of a problem if you have a business growing fast. If you can’t handle that on your own, you can also hire a professional to help you with the company payroll tax.#6 Simplify process and save money
According to the survey of National business association, around 27% small company’s owners are spending 3-5 hours on payroll. Also, one third of those employers are spending over $500 per month on their services.The best way to get rid of all these are to invest in HR task manager. Such tools help employer to keep track of everything at the same place.
#7 Factor in raise and benefits
Usually, almost all companies provide raise to their employee annually. You can make these also automated with the help of tools. The best you can provide to your employee is, give them some additional benefits. For example, you can offer them free laptop or subsidy while purchasing it. Similarly, you can look for other employee benefit programs.#8 Keep second business bank account
Every business should have a secondary business bank account which will be dedicate for processing the payroll of the company. This way, you’ll be easily able to differentiate the funds available for payroll and general work.#9 The difference between contractors and employees
When you are doing your payroll you need to make the difference between employees and contractors. Most businesses employ them both. Full-time employees, part-time employees and contractors are paid differently and there are different situations for both of them. For instance, some of them might be eligible for benefits, while others aren’t.Wrapping it up!
These were some of the best company payroll tips which you should follow to get it done in a better way. Managing the payroll with these company payroll tips will help you pay the salary on time, going with less manual work, and pay the taxes on time.
Ashutosh Jha
Ashutosh Jha is a professional blogger, Blog and IT Consultant. He writes about Blogging, SEO, Making Money, Internet Marketing and Web Design.
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