Being responsible for managing the payroll within a small but ambitious business can be a daunting prospect. A lot is riding on you getting it right, and there are serious consequences associated with any mistakes you make.
You can lighten the burden a lot if you take heed of the following pieces of payroll management advice, whether you are a newcomer to the world of business ownership or a veteran who is eager to make improvements.
Make use of paystub creation tools to save time & avoid errors
Providing employees with paystubs may or may not be a requirement in your state or region, but it is both good etiquette as an employer and also has other advantages, such as making it easier to keep track of any tax payments you make and expenses you pay back.
Manually doing this is clearly a time-consuming and complicated process, so using a paystub generator instead will be a wonderful efficiency saving, while also driving down the likelihood of errors occurring. This all comes down to the way that calculations for deductibles, benefits and anything else that is factored into the pay of each employee will be done automatically within the software, leaving you free to reap the rewards.
Ensure employee data is correct & up to date
Of course even if you use a paystub generator, it will not be effective if the information you enter into it is wrong in the first place.
This is where attention to detail becomes a skill you really need to foster when managing your small firm, or when delegating payroll duties to someone else.
If personal information is not correct and this is identified, then it should be changed as soon as possible. Likewise if some aspect of an employee’s info alters, such as after a house move or a marriage-related name change, then your payroll systems need to be updated to reflect this, otherwise they will become incorrect through inaction.
Add key dates to your calendar
Effective payroll management has a lot to do with getting the timing right, and if you are blindsided by the sudden arrival of a deadline that you did not realize was on the horizon, it can cause all sorts of chaos.
To protect against this, the simple act of adding calendar reminders for the most important dates throughout the year will be a sensible step.
This not only applies to things like taxation, but also to dates relating to employee payments; for example, if your team members earn a commission and there is a set point at which this is paid out, popping this in your schedule will prevent any forgetfulness creating consternation in the ranks and improve job satisfaction.
Choose consistent pay periods for everyone
While you might feel that you can handle a multifaceted approach to employee pay periods, perhaps paying some team members weekly and others monthly according to their roles, in reality this will just create confusion and more work at your end.
Unifying pay periods so that everyone including freelancers is on the same page is a far better strategy, and one which is especially worth implementing in a small business.
Look into outsourcing options
Another thing which smaller firms can do is outsource payroll management to a separate provider. This has become less essential in an age of comprehensive payroll software suites being more affordable, but nevertheless there are still merits to outright outsourcing as well.
Overall you should be aware of the challenges and limitations of payroll wrangling so that you can cope with them in a way that suits your needs and your budget.