Payroll is the lifeblood of any organization. Ensuring employees are compensated accurately and on time fosters trust and morale within the workforce. It also plays a crucial role in maintaining compliance, as accurate payroll processing ensures adherence to tax laws and labor regulations. Payroll is a complex and time-consuming process, but it’s imperative to get it right.
Here we present five tips to achieve accurate payroll and streamline the process, to help keep your employees happy and your company out of court.
Get Organized
There are a lot of due dates, tasks, reports, etc. to keep track of when processing payroll. Find a system for organization that works for you. This could be a calendar, weekly or monthly planner, or a simple to-do list.
Having a visual reminder of what is coming up can help you avoid missing a deadline and help you handle all payroll tasks more efficiently. This step is important to avoid penalties, interest charges, and compliance issues.
Simplify Your Policies and Procedures
There are many policies that contribute to payroll—attendance, paid time off, expense reimbursement, and commissions, to name a few. Review your current policies to ensure they are clear and concise. By making an effort to simplify your policies, while complying with all labor laws, you can make the process easier for you and your employees.
Develop documented payroll procedures outlining each step of the process, including data collection, verification, calculation, and distribution of paychecks. Clear procedures help maintain consistency and reduce errors.
Provide Electronic Pay Stubs
Foregoing paper stubs by providing direct deposit with online pay stubs can save your company time and money. Although employers in many states can’t make direct deposit mandatory, the benefits for both employers and employees make it an appealing option.
Aside from convenience, electronic pay stubs minimize errors, ensuring accurate wage calculations and tax withholdings. They are also safer and more secure. Electronic pay stubs are encrypted and stored securely, reducing the risk of theft, loss, or unauthorized access to sensitive payroll information.
Keep Up with Changes
Legislation affecting payroll and taxes is ever-changing, so you need to keep up to date on all relevant laws affecting your organization. The IRS typically releases new information in early December for items in the coming year, such as tax withholding changes, new benefit charts, or deduction amounts and new W forms.
Know what these items are and what deadlines you will have to meet throughout the year.
Utilize Technology
Leveraging payroll software and technology can deliver huge benefits. These solutions can streamline payroll processing, automate repetitive tasks, and reduce manual errors. Choose a reliable provider that aligns with your organization’s needs and offers robust reporting features. Intelligently connected platforms can address other human capital management (HCM) needs like time & labor management, benefits administration, onboarding, talent acquisition and management, and more within a single solution.
If processing payroll is keeping you from focusing on the bigger picture, or if you’re reconsidering your current solution, click here to request a call today!
