Payroll is one of the more dreaded tasks that a business undertakes, but it is essential. Making payroll smoother and more reliable should rank highly on your list of priorities. Ensuring seamless and on-time payments keeps your employees feeling happy and appreciated, and it ensures the continued operation of your business.
#1 Check and update records
Perhaps the easiest starting point, make sure that your employee’s personal information is correct and up to date. Employee status can change quickly with promotions and paid leave – they might even move to a different address or change their bank details. All of this needs to be kept up to date. Failure to do so makes for a much more stressful payroll experience.
#2 Use electronic payslips
Paperless offices are undoubtedly the future. Aside from the obvious environmental imperative, using electronic payslips is just more convenient. It saves on printing costs and even saves on delivery since the slips can be dispatched at the touch of a button. It’s much easier to generate electronic payslips, and employees are far less likely to lose them amongst a mountain of other paperwork.
#3 Stick to a schedule
Big businesses invariably streamline their payroll processes via a payroll calendar. This cuts out the mad scramble for last-minute submissions by ensuring cut-off dates for things like mileage claims and expenses. Calendars help both you and your employees keep track of exactly what needs to be done and when. They break payroll down into an easy-to-follow, step-by-step process that’s clear to all involved.
#4 Use software
Given the arduous nature of running payroll, many businesses nowadays turn to software to at least partly automate the process. Payroll software varies in scope and design, but it will usually allow you to manage direct deposits, contractor payments, general ledger reporting, and much more in one place. Having a unified system where you can manage payment schedules and rates takes all the pain out of the process.
#5 Simplify
There’s no escaping the sometimes complex nature of payroll. Factors including paid leave, expenses, mileage, and even freelance work all combine to make a system that can seem myriad. That doesn’t mean that you shouldn’t try to simplify the process, though. Keep policies as straightforward as possible and avoid a tiered approach for different levels of employees. Make sure that everybody is aware of how payroll will work and the policies involved. Simplicity benefits your employees, saving them time, and it benefits you, too, since it cuts down on unnecessary administration.
#6 Let employees know what’s expected of them
You can’t do everything. Every business has different employee expectations, but your staff will probably be tasked with reporting their own over time, sticking to/detailing expenses, and updating you if their circumstances change. Make sure that this is all clear and that every employee knows their duty. The last thing you want to do is chase people up during the payroll process.