Payroll processing is one of the most crucial aspects of any business. Before the end of every month, you’ll have to consider many factors such as your employees’ time cards, minimum wage, employee output, overtime, payroll tax and PTO to roll-out payrolls. Every business looks for fast and effective ways of processing payrolls.
If you’re a growing business with limited employees and heaps of unfinished work, here are some tips to help you manage payroll more efficiently:
Create a clear payroll policy
Having a payroll strategy in place will help everyone at your workplace understand how remuneration works, what the payroll period is, and the employee benefits you offer. To develop an effective payroll policy, you should stay up to date with the laws and make sure you aren’t violating any. This will also ensure your business complies with the IRS.
Decide on salary status and pay schedule
Pay schedule covers the information regarding the frequency of payday. Check the federal and state laws in your operational area to figure out minimum payday laws. It’s crucial that you pay your employees on time and as frequently as the payday schedule outlined by the law.
You can choose between an hourly rate for nonexempt employees and a fixed salary for exempt employees. Depending on your businesses’ profit, growth and employees’ position, you can decide on a salary status.
Set up a payroll system
A payroll system helps you track your employees’ payrolls and manage timely disbursements. Generally, you can choose from three types of payroll systems:
Manual
Some small businesses choose to carry out their payroll process manually. This means they will track their employees’ working hours and generate payrolls by hand. Manual payroll processing can be the most tedious and time-consuming activity and it’s also prone to error. Therefore, most businesses move on quickly to other ways of generating payroll.
Software
Having an efficient software that takes care of all you payroll woes in record time is one of the fastest and secure ways of generating payroll. However, small businesses don’t usually have the budget to purchase an expensive software that comes with a wide range of features. And spending a massive amount of money on a limited number of employees isn’t the most cost-effective way of running a business.
Outsource
Outsourcing your payroll generation can help you save time and money. You can rely on a reputable payroll processing company to take care of your financial tasks such as handling tax deposits, processing paychecks and employment taxes.
If you’re looking for an expert bookkeeping service, reach out to us. At 3Alpha LLC, we provide legal tax advice for businesses and prepare tax return documents to reduce your tax burdens. Connect with our friendly customer care today for more information.