Managing your payroll can be a total nightmare, especially when you’re starting to grow your business. What’s more, payroll affects your organization’s cash flow, risk profile, and employee engagement if they aren’t paid accurately and on time, which could lead to low morale.
Companies are putting greater emphasis on reducing inefficiencies, including moving away from outdated approaches to payroll. Here are 5 ways your organization can leverage its workforce, software, and technology to save time and money on your payroll processes.
1. Use a Reliable Timecard App
Employee time tracking is typically more time-consuming than it has any right to be. Instead of relying on a traditional punch-card system, use time card apps like BuddyPunch. With GPS tracking and geofencing, time card apps can keep your team accountable and ready for work.
Time card apps also help your business run payroll by integrating with accounting software, like Paychex, QuickBooks, and ADP, or by calculating equations on your Excel spreadsheets.
2. Streamline Compliance
Failing to comply with federal and state payroll regulations could lead to costly penalties, both from your wallet and reputation. Unfortunately, maintaining compliance is a never-ending process. If you can establish a compliance strategy early, you’ll streamline the process.
- Utilize Audit Trails: Audit trails allow you to link each transaction, such as purchase orders and invoices, with supporting information. This helps you validate payments.
- Maintain Accurate Records: Keep your personnel records up to date with relevant details, as some of these details are likely to affect payroll, like a change in salary.
- Research the Latest Payroll Legislation: Payroll legislation changes constantly. Make sure you and your team research the latest payroll regulation updates frequently.
3. Consolidate Pay Schedules
There’s no reason why your employees should be paid on different days, weeks, or payment schedules. Although it may make a new hire wait an extra week for their first paycheck, establishing a consistent schedule that doesn’t change will ensure you never miss a payday.
Payroll can use software, templates, or calendars to consolidate their pay schedules. For example, Google Calendar allows you to set reminders for crucial dates. You can also share browser-based calendars with your HR teams and admins to keep them in the loop.
4. Centralize Your Systems and Records
Using separate systems for your payroll process will complicate your workflow, which keeps your teams from working as efficiently as possible. It makes more sense to integrate your systems into a single source as that provides better visibility and functionality.
One way businesses do this is by integrating their payroll, HR, and time data all in one system. This cuts down on reporting time and makes data management a much simpler process.
Although centralizing your systems and records will cost you some time, you’ll thank yourself during tax season. You’ll be able to update your data in bulk, which reduces potential compliance errors regarding earnings, deductions, benefits, taxes, leave, and other information.
5. Digitize Workflows
While you may need to keep physical copies of your cheques and tax reports, you can still handle most of your payroll processes online. Paper-based payroll will only slow you down.
Digitizing your payroll can include everything from using online forms for leave requests to using your computer calculator for complex calculations. However, you’ll benefit the most by using direct deposit to pay your employees, as it’s more efficient than printed cheques.
Payroll should always file their taxes electronically using software like Quickbooks. Since payroll software lets its users integrate other third-party apps, you could use a payroll system to pull necessary tax information, which will populate onto required tax forms and documents.
Michael Dunlop is the Chief Operating Officer of Paradigm Digital Ltd and has extensive experience in business consultancy services.
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