For the uninitiated, payroll might seem a
pretty straightforward process. Pay all the employees their salary at the right
time is the assumption. That is just the beginning. Anyone who is familiar with
payroll operations,will know that the process is anything but simple.There are
a number of things that can go wrong. There are many risks, penalties and
consequences companies may have to face if payroll is not managed accurately.
Due to these complexities, it’s common for the
payroll process to turn into a weekly ordeal
that everyone dreads. But there are several ways your business can speed up the
payroll process and transform it into something much more efficient.
Adopt new technologies:
To streamline the processing of payroll, consistently adapt to
newer technologies and update all systems. It can help to significantly
decrease the time spent processing payroll and at the same time ensure greater
accuracy in data entry and processing.
Understanding Tax Policies:
Even tiny errors payroll can result in huge
penalties and subsequent ramifications. Chances of failing to comply with
Government norms are usually high and companies would have to fix their errors
along with the penalties. To avoid such penalties, it is critical to understand
all tax compliances and incorporate them in the payroll process. Employees need
to be trained on a regular basis to keep themselves up to date on the various
laws. Employees may have the right to file a lawsuit against an employer if
payroll errors put them at a disadvantage. For example, employees who are
incorrectly paid over a long period of time may not notice the error until they
are owed hundreds of dollars. This situation puts both the employees and the
company in a bind.
Minimize Pay Cycles:
Minimizing pay cycles can help to minimize
errors in payroll processing. Generally, companies
follow the practice of paying on roll employees on a monthly basis while part
time employees are paid on a weekly or fortnightly basis. When you have
different pay schedules for employees on roll and part-time employees,
duplications may occur. To avoid this, implement the policy of single pay
schedule for all employees
Having an online payroll system that is state-of-the-art
can still be problematic if it doesn’t work with your company’s accounting
system, for example. And having a multitude of systems for capturing, tracking,
inputting, and processing employee hours, etc. can create a multitude of
“pain points” – steps where mistakes are often made or data lost.
Once companies adapt to newer technologies,
their payroll is bound to go paperless within a very short amount of time that
eventually helps to expedite all payroll operations. It also has the added
benefit of enabling companies to go green and reduce wastage of paper in the
Outsource Payroll to the experts:
If you’re a small business owner and you don’t
have the time or resources to invest in building a new payroll system or
updating an older one, outsourcing to a professional, full-service payroll
management company can be a strategic and cost-effective option. Today,
businesses of all sizes are outsourcing all or part of their payroll functions.
The most commonly outsourced functions include: year-end tax form printing,
payroll tax preparation and filing, year-end tax form distribution, check
printing and garnishment administration.