Three Tips for Effective Payroll Management

Three Effective Tips to Streamline Payroll

Posted by on January 10, 2017
payroll

An efficient payroll system plays a key role in employee satisfaction. As an employer, you are expected to set up a system of payment that would hold itself regardless of the complexity of the process.
The system generally includes processing of payroll forms, payment to employees and payment of liabilities. What makes it complex is the fact that variables keep changing. Taxes changes regularly, as do the regulations and the employees’ own lives, altering their payroll requirements. Incorrect payroll taxes would attract hefty penalties and fines. You have to stay compliant to stay out of trouble. Moreover, you need to make sure that your staff is always on top of payroll tax policies and it is imperative for maintaining compliance.

Here are three effective tips to ensure a hassle-free payroll:

Regular Audits

If there are frequent employee complaints about payroll, it is a signal that you should conduct regular audits of the entire process. Comprehensive workflow analysis, involving each step of the process from beginning to end will help identify issues. Automated systems aren’t a guarantee against mistakes. Your staff may incorrectly classify a new employee’s tax status or forget to adjust pay rates after an employee’s salary is hiked.
Audit must include all paperwork and processes to determine that everything is streamlined. You need to make sure that payroll software is well integrated with your time and attendance system. Install a check-in system and/or biometric sign-in hardware rather than relying on a manual system. It would automatically feed in the times when an employee signs in or swipes a card.

Transparent Payroll Policy

Employees need to be well informed about the payroll system. Problems arise when pay policies of the organization are either not accessible or inadequately presented to the staff. Instituting a transparent payroll policy would help tackle payroll issues, such as underpaid taxes or employee mis-classifications.

You need to draft a payroll policy that includes the working of payroll process, classification of employees, determination of salary, employee reporting responsibilities, procedures for handling payroll mistakes, levels of vacationable earnings, and process of calculating wages and promotions. Ensure that each employee has a copy of the policy.

Improve Efficacy of Payroll Process

One of the best ways to augment the efficiency of payroll process is to seek the input of employees. People would not fully understand the complexities of payroll processing, a policy of transparency notwithstanding. Continued communication will help you identify areas of confusion and misunderstanding, and explain these.

If needed, you may call an all-staff meeting to discuss payroll issues. Use the meeting to get employee feedback about payroll process and their suggestions regarding improvement. You may also consider having a company-wide survey of all employees to determine their satisfaction level with the procedures.

Wrapping Up

Most businesses now prefer to outsource the payroll process, recognizing the complexities involved. Identifying an outsourcer specializing in payroll and outsourcing the process to them will enable you focus on your core job, while the experts take care of the payroll related payments and compliance

REQUEST A CALL BACK

Share your details to get a Call Back from us

+1-