Payroll is a necessary part of your business. It’s how you reward your employees for their hard work. However, keeping up with payroll is both time-consuming and complex. It can turn into a significant challenge if not done correctly. Fortunately, there are steps you can take to make payroll easier. Here are our best practices for creating and implementing a seamless payroll process for your employees.
Establish a Payroll Calendar
Create a payroll calendar that shows pay periods, the dates payroll will be run and other pertinent information. Outline which input is needed for processing, when it will be completed and when tax deposits are due. Your payroll department will stay informed on when tasks need to be completed, so payroll is processed on time.
Implement Payroll Software
Using payroll software significantly reduces the time needed to calculate pay and withholdings. Many online versions are available. After entering employees’ information, including how much they make and how much they chose to withhold, all that needs to be entered each payday is how many hours each employee worked. Overtime hours, vacation and sick days, commissions, or other information may need to be added as well. The software calculates the net pay and creates a pay summary for each employee. It may automate the direct deposit process or create paychecks as well. Since the software retains electronic payroll records, there is no need to file paper copies, saving on office space.
Streamline Processes
Automate payroll processes whenever possible. For instance, provide electronic pay stubs rather than paper ones if state law allows. Many staff members prefer electronic pay stubs to keep for their records. Also, pay employees by direct deposit rather than printing and delivering checks. If an employee doesn’t have a bank account, offer them a pay card.
Pay Certain Employees a Salary
When possible, put employees on a salary rather than an hourly wage. Because salaried employees typically earn the same amount each week, their gross pay, tax withholding and net pay can be determined once and copied for each pay period. Keep in mind that bonuses and other incentives require additional figuring. Also, follow all laws regarding who can be paid on a salaried basis.
Outsource to a Payroll Provider
Make your employees’ jobs easier by outsourcing your payroll to Red River Payroll. Our trained professionals have the expertise necessary for payroll and tax compliance to ensure your employees are paid timely and accurately. Get started with us today!