Payroll is one of the most despised parts of running a business, with 40% of business owners saying that it’s among the worst things about owning a business.
Business owners that do payroll themselves feel stuck with the systems they have. You might find yourself in a similar position.
Don’t fret because help is on the way. Do you want to take the first step toward improving payroll management?
Read on to learn some concrete actions you can take to streamline payroll.
1. Have a Set Policy and Schedule
Do you have a set payroll policy and schedule? Your business may treat classes of employees differently by processing payroll for part-time employees and full-time employees during different weeks.
You should treat everyone in your organization equally and process everyone’s payroll on the same day. This will save you time and headaches.
2. Don’t Fall Behind on Taxes
Payroll taxes are one of the major drawbacks of having employees. It may be tempting to just classify your employees as contractors, but that will catch up to you eventually.
Make a concerted effort to understand your tax obligations and plan to pay payroll taxes in the worst of times. You don’t want to fall behind on your taxes, but the IRS doesn’t play around with late and outstanding payroll taxes.
Avoiding late payments is a priority for you. You’ll be fined and penalized, which will add up quickly.
3. Ask Employees for Feedback
You have some ways to show employees that you value their contributions. They give you the best they have to offer, and you pay them.
There could be little details in your payroll systems that can make your employees feel undervalued. It’s best to survey your employees and uncover any issues.
4. Audit and Update Systems
Improving your systems means that you need to set a baseline for your business. You’ll need to take a close look at your existing systems.
You might find that there are processes in place that slow down payroll. For example, doing everything on a spreadsheet and handwriting checks is a slow process.
You should consider upgrading to a paycheck generator that takes care of the work for you. That type of system will limit your mistakes, too.
5. Outsource Payroll
One other option is to outsource payroll processing to another provider. About 60% of small business owners don’t want to handle payroll, but they’re afraid of the costs.
If you’re in this situation, you have to remember that you can focus on activities that generate revenue for your business instead of processing payroll.
Outsourcing has the potential to generate revenue, as long as you use your time wisely.
Improving Payroll Management One Step at a Time
You don’t have to dread doing payroll anymore. You just need to make an effort to improve your payroll processes.
Improving payroll management starts with having a standard payroll policy for all employees. You’ll need to make sure you pay your taxes on time and upgrade your systems when necessary.
For more tips to build a more efficient business, visit the Business section of this site.