5 Important Payroll Management Tips for Small Business Owners
Did you know 25% of people have dealt with paycheck errors at some point?
As a small business owner, payroll errors have the potential to make or break your company. So effectively managing payroll is key to keeping your business running smoothly and keeping your employees happy.
Continue reading to learn five tips for payroll management.
1. Create a Schedule
If your employee payroll gets handled in-house, creating a schedule to ensure things are completed on time is crucial. All it takes is forgetting the day payroll needs to be processed one time for your employees to get paid late.
Establish a pay schedule (weekly, bi-weekly, etc.) and create a schedule in a calendar to make sure payments will go out on their scheduled dates. Then, if a holiday or anything else will result in a delay, you’ll be able to notify your staff ahead of time and avoid creating panic.
2. Double Check Everything
One of the most crucial payroll management tips is double-checking everything before it gets finalized.
Human errors like adding an extra zero can create big headaches down the line. Issues like this are entirely avoidable if the work is double-checked.
It’s best to have a fresh set of eyes go through and check everything because a new person will be more likely to catch errors.
3. Keep Updated Employee Records
When you manage payroll, many different things impact each individual within the company. For example, if someone has a new child, an extra dependant can affect their tax rate.
Raises also need to be kept track of and implemented for tax purposes. So keeping detailed accounts of employee records and making it easy to update them on a regular basis is crucial.
4. Carefully Track Hours
When completing payroll, the number of hours an employee worked determines their overall pay. Therefore, you need to have accurate information about how many hours each person worked so they’re getting paid the appropriate amount.
You don’t want to give them more or less money than they’ve earned.
Typically, it’s better to have an electronics hour tracking system versus having people handwrite their hours for accuracy.
5. Don’t Handle It All Yourself
At times hiring payroll services is the only option. If you’re too busy to deal with payroll or don’t feel confident you know how to do it correctly, hiring someone to handle it for you is best.
Take a look at this link https://www.ignitehcm.com/blog/5-things-to-look-for-in-a-payroll-specialist to see what things you should look for in a payroll specialist. Keeping these things in mind will help you choose someone trustworthy and knowledgeable to handle this important task.
Consider Switching to Payroll Management Services
Payroll management is no easy task. It takes knowledge and an eye for detail to handle it appropriately.
Whether you choose to manage payroll on your own or hand it off to a payroll specialist for peace of mind, your employees will be thankful for their prompt and accurate pay.
If you found this article helpful and would like to hear more business tips and tricks, please take a look around the site for more articles like this!
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