Keeping your payroll in order can be one of the most challenging aspects of owning and operating a small business. Between taxes, deductions, and staying out top of each employee’s unique situation, it’s a lot to keep track of!
Fortunately, you don’t have to do payroll management on your own—and there are a few simple tips and tricks to help streamline and simplify the process.
With that in mind, here are five recommendations we have for paying your employees.
Use the Best Payroll Management Software
If you’re still managing payroll with paper and pens, or a big spreadsheet on your desktop, then it’s time for you to enter the 21st century.
There are plenty of affordable—and even free—software options out there that can help keep your payroll in order and even help you create a paystub for your employees.
Technology makes nearly every aspect of life easier, and the same can be said for creating employee paystubs.
Do you know what the state income tax rate is where you live? Are you sure you understand how deductions work? And what are you supposed to do if you make an error on an employee’s paycheck?
You don’t need to become a full-on accountant—but having a basic working knowledge of how payroll works in your state will be helpful in a couple of different ways. First, it will make your regular payroll duties a breeze, and, even better, it will keep you and your business legally protected.
Are you the type of worker who has papers and post-its scattered around on your desk and a million different files chaotically arranged on your computer’s desktop?
If so, it’s time to clean up your act. This won’t just help when it comes to keeping your payroll in order—it will also help in virtually every other aspect of your business as well.
Synchronize Your Payments
Some businesses have different pay schedules for their salaried workers and hourly workers or other quirky payroll schedules.
If that’s the case for you, you should consider putting everyone on one streamlined payroll schedule. It might take a little extra work up front, but it will make things a lot easier in the long run.
Use a Payroll Service
Is your business rapidly expanding? Do you find yourself so bogged down with payroll management that you can’t focus on growing your company’s more essential aspects?
If so, you should consider outsourcing your payroll to an independent payroll service. Let them sweat the small stuff so that you can focus on the big picture.
What’s Best for Your Business?
We’ve given you a few payroll tips—but when it comes to payroll management, you know what the best choices are for your business. The most important thing is that you take charge to create a reliable, streamlined system that you can rely on.
If you found this payroll advice helpful, feel free to check out more business-focused blogs on our site.