Payroll can cause a lot of stress to both your payroll management team and your employees. However, taking the time to find the optimal management system for you and your business will result in a smoother payroll process and happier staff members.
How To Manage Payroll
The following will look at some of the things you can do to make your paystubs management more efficient and less frustrating.
Reduce Or Eliminate Paper
When managing payroll services (and other services, for that matter), one of the first things you can do to make everyone’s life easier. Optimize the process, and reduce the risk of important information being lost is by going digital with your payroll services. It is estimated that each paystub cost an average of $3. This is money you could be easily saving.
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Further, switching to an electronic payroll system means that your employees get paid more quickly and more accurately. When paper is reduced, there’s also the reduction in the risk of needing to cancel the payment and provide a new one, which can happen if a check is misplaced.
Moreover, this helps your employees out, as often the wait time to access funds at their personal banks is lower for funds transported electronically than by funds deposited with a check.
Finally, reducing paper payroll services is great for the environment (fewer trees or tree products used) and safer for your payment data.
Fires, floods, earthquakes, and other disasters can result in the damage or loss of important payroll information if you’re storing everything in hard copy on site. Even something like a spilled cup of coffee can result in lost information.
Payroll Management Software
Once you’ve made the switch to digital payroll, you’re going to be looking for the right payroll management software. There are many options available here depending on the specific needs of your company (customized options are also available).
The team behind www.zenefits.com/payroll points out that no matter the specific needs of your company. There will be payroll software that suits your staff and industry. There are tips for reporting software elements (making everyone’s lives easier come tax season) and options to include a message with a digital pay stub (in the event that something needs clarification this can save everyone a lot of time) just to name a few.
This software reduces the risk of error and helps make your payroll staff’s lives easier. Redundant tasks are eliminated, and there is space for automation regarding some of the more repetitive manual tasks.
Moreover, payroll software has the added benefit of being able to present all your payroll data to you. This information can be used to understand how your money is being spent and whether there is any room for improvement.
Schedule Your Payments
This step is crucial if you want a smooth and easy payroll process. There needs to be a standard schedule with predictable dates where payment can be expected by your staff. This way, your payroll team understands their deadlines, and your employees can better plan their financial decisions.
While it might be tempting to issue paychecks less frequently to reduce the amount of work and possible errors that can occur. Studies have found that employee satisfaction is increased by more frequent payments.
Think about human evolution; people are supposed to be working and seeing the results of their work almost immediately. Seeing the results of your work immediately produces a big dose of feel-good chemicals in the brain.
Feeling rewarded for a day or week of work can help increase employee satisfaction and motivation. Resulting in better work performance. It is completely okay to do a little trial and error here. Making changes when you’re not happy with the results.
Just be sure everyone is aware of the changes and given time to adjust their spending or work to suit the new structure.
Understand Your Legal Obligations
Every state has different rules and regulations when it comes to payroll. To make things even more complicated, different work structures have different legal standards as well.
This means that within your company. You might have different legal requirements to meet for people depending on their job title and position. Stay up to date on all the requirements and be sure you’re meeting these legal regulations. Making a mistake in this regard can result in legal repercussions, including brutal fines.