6 Ways to Speed Up Your Payroll Process
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. There is always a higher probability of failing to comply with Government rules and regulations and as such they will have to not only rectify those mistakes but pay huge penalties for it. It is better to avoid such situations by carefully understanding all the rules and regulations and subsequently integrate them with the process of payroll and tax compliances. Every employee needs to be educated about the ever-changing compliances and norms.
Minimize Pay Cycles:
Reduce the duration of all pay cycles so that there is a significant reduction in payroll processing mistakes. Usually full-time employees should follow a monthly pay cycle whereas on-contract of part-time employees can follow a bi-monthly cycle. Although maintaining varied pay cycles can lead to duplication of employee records which should be actively avoided. A solution here could be to maintain only type of pay cycle for every employee within the organization.
Irrespective of a technologically advanced online payroll system it should be able to work with the company organization’s existing systems. If there are multiple systems that take care of attendance, leaves, number of hours worked, etc. it can be difficult to integrate all this data to derive any meaningful analysis out of it.
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 office premises.
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.