Payroll is an essential business function, and likely one of your organization’s greatest expenses. It’s a complex and time-consuming process, and it’s imperative to get it right.
Late or inaccurate paychecks not only affect employee morale, sloppy practices could jeopardize the future of your business. Failure to adhere to the rules set forth by the Fair Labor Standards Act (FLSA) could result in hefty penalties.
Here we present five tips to streamline the process, to help keep your employees happy and your company out of court.
There are a lot of due dates, tasks, reports, etc. to keep track of when processing payroll. Find a system for organization that works for you. This could be a calendar, weekly or monthly planner, or a simple to-do list. Having a visual reminder of what is coming up can help you avoid missing a deadline and help you handle all payroll tasks more efficiently.
Simplify Your Policies
There are many policies that contribute to payroll—attendance, paid time off, expense reimbursement, and commissions, to name a few. Review your current policies to ensure they are clear and concise. By making an effort to simplify your policies, while complying with all labor laws, you can make the process easier on you and your employees.
Provide Electronic Pay Stubs
Foregoing paper stubs by providing direct deposit with online pay stubs can save your company time and money. Although employers in many states like New Jersey can’t make direct deposit mandatory, the benefits for both employers and employees make it an appealing option. Aside from convenience, electronic pay stubs are safer and more secure.
Prepare for the Future
Legislation affecting payroll and taxes is ever-changing, so you need to keep up-to-date on all relevant laws affecting your organization. The IRS typically releases new information in early December for items in the coming year, such as tax withholding changes, new benefit charts, or deduction amounts and new W forms. Know what these items are and what deadlines you will have to meet throughout the year.
Automating payroll can deliver huge benefits. Choosing a trusted provider to handle your payroll eliminates tedious administrative tasks and allows you to focus on more strategic initiatives. Seek a provider that addresses other human capital management (HCM) needs like time & labor management, benefits administration, onboarding, talent acquisition & management, and more within a single solution.
If processing payroll is keeping you from focusing on the bigger picture, or if you’re not satisfied with your current solution, click here to schedule an appointment with a Balance Point HCM Consultant today.