It can take a lot of time to stay on top of your business payroll and can be time-consuming if you don’t have the proper tools. According to the Small Business Taxation Survey conducted by the National Business Association, over 60% of small businesses internally handle their payroll processes. No matter if you’re running a small or large business, you should have an organized payroll system to prevent IRS penalties and to ensure timely payment to your employees. Here are some of the tips and tricks to remove the stress of payroll management –
Are your employees paid hourly or salaried?
It is always easier to manage for an employer by keeping their staff on salary basis. Employers don’t have to determine how much they have to pay their employees every month and it keeps things consistent when it comes to payday.
But you should still have a proper time tracking system if you have staff that work on an hourly basis. It is important to keep track of their compensation and time.
What Pay Period has been Determined for Your Employees?
Pay period varies from employer to employer for their staff. You may want to pay your employees weekly, monthly or bi-weekly. Try to keep every employee on the same pay period as it will help you keep things organized for a smooth payroll run.
Choose the best Payroll Management Software for Your Business Needs
When picking the best payroll program for your business, it’s always suggested to choose one that is cloud-based. This way, you can easily access all the data of your payroll at once, whenever you need it. Along with finding a payroll program, choose a time management program which can remove stress off running accurate payroll. Sometimes, employers can integrate their software into the vendor’s system to improve collaboration and communication in the process.
Another important tip for payroll management is to classify your workers properly. Whether you hire your independent contractors, full-time staff, or interns, they must be considered as employees if they are working for your company.
Ease your process to save money and time
The National Business Association survey has reported 27% of business owners spending up to 3 to 5 hours in a month on payroll management, and 1/3rd of employers spending over $500 per month on services. So, it is better to invest in an HR task manager to ease your payroll process. These tools will help you arrange everything at once. It can save both money and time in the long run.
Keep all your documents and records at one place to ease your payroll management. Employers have to secure some records for some time period as per the government requirements.
Choose payroll software which can take care of state and central government taxes for your business automatically. It can secure you in case you forget about tax deposits. It completes the process on a timely basis.
Consider benefits and raises
Give your employees additional benefits as reward to give employees raises easily. For example, you can give them a new device, extra cover, stipend for childcare etc. These are a few of the options that can save your taxes and ease your tax paperwork.
Do you need an employer ID?
In some places, you may have to obtain employer ID to process taxes. A lot of entities and businesses have ID numbers already. Contact the IRS if you don’t have one.
Plan a budget
Consider the budget for taxes and wages to plan your payroll. Employers have to pay Medicare and Social Security taxes. Most have to pay taxes for unemployment. You need to plan ahead for such kinds of expenses.