By definition, Payroll is the employer’s list of entitles employees and the amount that is to be paid to each. It involves employee information, hours worked, leaves, salaries or wages, overtime, benefits, other pays, deductions and taxes. It is a cumbersome task and calls for timely and accurate completion. The following tips will be helpful in streamlining the payroll management process:
Opt for payroll calendar
It helps to schedule employees pay and let all concerned know the time frame of things like, processing of time card, payslip etc.
Employ mostly salaried employees
It is much easier to manage the payroll of salaried employees compared to hourly employees. If you cannot do without hourly employees or daily earners make sure to have a good system of measuring time and compensation.
Form easier policies
Complex policies increase the burden of payroll management. Have simple and effective policies for attendance, leave or absence, reimbursement, commission etc. Pursue employees to consult written policies thoroughly so that less queries are generated.
If you opt for a service provider some pertinent questions to the provider and their clients, will help you understand the effectivity of their policies:
-What is their turnaround time
-How frequently you will hear from them and receive reports
Help of Technology
Choose the right payroll software like Kronos, Ascentis, Sage, QuickBooks etc. Cloud based software are easier to handle as you can get all your payroll information in one place as and when needed. Make sure the software take care of the taxes on time. Also opt for tools like HR task manager to organize and streamline your payroll activities.
If you are choosing a payroll management service provider, don’t forget to know directly and through clients the following:
-Do they integrate their system with your accounting software
-What are the back office technologies do they use
Online information service
To save time and remove the distraction generated from employee’s payroll enquiries, provide online access to payroll information.
Prioritize accuracy
Accuracy cannot be compromised for the sake of speed or anything similar. Inaccurate information can prove to be very costly by creating trust deficit and hostility. Only people with great attention to detail should be in charge of such work. Who is liable for a mistake and how long does it take to rectify a mistake should be known prior to appointing a service provider.
Tax-free raise
For a raise, give the employees tax free benefits like, laptop, an amount for childcare, newer insurance etc. This will ease the workload of tax paperworks.
Involve the employees
Engage the employees where possible. Ask them to record attendance hours, sign on paid leaves, verify the expenses etc. This way employees become more responsible of their activities and lessens the burden of payroll work.
Use direct transfer instead of issuing cheques
For faster, accurate and more convenient payment process direct deposits are more preferable. Pay cards are an option for employees who do not want direct deposits. To issue cheques avoid manual writing.
With all the above ideas employ best payroll competencies that match your business size and needs. Patience, clear communication and good organization is capable of carrying a smooth payroll management process.
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