What’s the worst part of owning a small business?
If you’re like 40 percent of owners, bookkeeping and taxes are your worst nightmare. Between keeping up with the complex and ever-changing bookkeeping and payroll regulations and shuffling through lots of administrative paperwork, the whole thing can be a pain in the ass.
One thing is paramount, though. You must process your workers’ salaries – and on time.
To save you the trouble, we’re sharing 5 things you can do to make employee payroll easier. Keep reading!
- Understand the Payroll Management Process
As a small business, you’re probably running on a shoestring budget. This means you don’t yet have sufficient funds to set up a payroll department or invest in payroll management software.
If you do payroll yourself, it helps to gain some knowledge on the payroll management process.
Read books on the classification of workers and administration of an employee’s financial records, including wages, salaries, deductions, and benefits. There are also several online video tutorials that will help set you up for payroll success.
- Settle on a Suitable Payroll Schedule
You can pay your employees as frequently as you wish, but it’s crucial to find a payroll schedule that works for your workers and your business.
Sure, most workers will prefer getting paid as often as possible, and you might want to meet their wishes. However, increased payroll frequency usually results in increased costs and you’re more likely to make errors.
With this in mind, it’s advisable to choose a monthly payroll schedule, or bi-monthly if it’s necessary.
- Invest in Payroll Management Software
As your business grows and profits increase, don’t hesitate to buy payroll management software.
Although various software have different capabilities, expect it to automate most of your payroll tasks. In most cases, all you’ll have to do is enter employee data and it will do the rest.
When shopping for payroll software, ensure one of the features it offers is a check stub maker. You need this to effortlessly generate pay stubs for your employees.
- Hire a Payroll Specialist
Although payroll management software will make your work easier, as your business expands you’ll need to keep your feet on the ball.
After all, you’re an entrepreneur. Your expertise is developing new products and services, not calculating employee salaries. As such, it’s time to drop the payroll hat and hand it over to a specialist.
A payroll manager (could be an accountant or bookkeeper) will free up your time so you can focus on what you do best. You’ll also rest easy knowing the task is in the hands of an expert.
- Outsource to a Payroll Service Provider
If your business isn’t quite ready to hire an in-house payroll manager, the best alternative is to outsource the task to a payroll service provider.
Outsourcing is usually more cost-effective than hiring an in-house person, but you have to find a competent payroll company. To do this, create a shortlist of 3-5 providers and then start vetting them based on experience, reputation, and cost.
Employee Payroll Made Easier
Staying on top of employee payroll will not only keep your team happy and satisfied but also ensure your business stays compliant with the relevant laws.
However, as a small business owner with many tasks on your plate, you might not have the expertise or enough time to handle payroll accurately. Fortunately, we’ve fleshed out the various steps you can take to make the task easier.
Keep tabs on our business category for more insights.