Trying to organize payroll is a lot like baking a cake; every ingredient must be measured and completed effectively to make the whole recipe come together. One small mistake like using baking soda instead of baking powder and your cake could be ruined. Although sometimes overwhelming, baking can be simplified if given the right system and organization. Managing your payroll is no different and as long as you have the right systems in place, your ‘kitchen’ will run smoothly. Keep reading to learn 5 tips that can help you manage your payroll with ease.
1) Create a payroll calendar
Creating a specific calendar for your payroll can organize and simplify your process. This also allows you to easily track pay periods and ensure that all of your employees are paid on time.
2) Automate payroll related taxes
By creating a system that automatically accounts for payroll taxes, you can help ease the burden of payroll management. This automation can also decrease the risk of mistakes and takes away the stress that comes with handling tax payments manually.
3) Classify all workers
The rules and pay schedules can vary based on employees’ classifications. As we mentioned in our previous blog post, gross pay is calculated differently for salary and hourly employees. It is important to be diligent about updating and maintaining records of employee classifications to ensure that pay cheques and taxes are calculated accurately.
4) Find the right software
Using software can streamline the payroll process for your business. The right payroll software is easy to use and can save you valuable time and energy. That being said, it is also important to not rely entirely on software. You still need to be informed on the goings-on of your payroll.
5) Keep all records
Keeping updated and accurate payroll records is not just recommended but legally required. Recording all of your information also allows you to maintain organization and compliance. When storing these records, it’s a good idea to have clear privacy policies and a secure storage environment.
All in all, failing to maintain a strong payroll system really can be a recipe for disaster. We understand that as a small business owner you have limited time, and that the payroll process can easily become a source of stress. If you are finding payroll overwhelming and time consuming, there are services available to help you. Here at STEPS, we offer many payroll services that can make your payroll process effortless. Learn more on our payroll tab or send us a message through our contact page.
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