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
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.