5 Steps to Stress-Free Payroll
By
Taking care of payroll can be an overwhelming
task for small business owners, but the good news is that it doesn’t have to
be. Payroll is probably one of the most tedious jobs you have to do, so doing
it yourself might seem appealing, but it can take up lots of your valuable time
and isn’t always the best option. The following are 5 steps to helping you take
the stress out of payroll so you can focus on growing your business, rather
than worrying about how much money you owe in taxes or what you’re going to do
with your employees’ money.
File
your taxes on time If you wait until tax season is upon you, you
might not have enough time to gather all your paperwork and receipts. The IRS
will often waive interest and penalties if you're late filing because of
circumstances beyond your control, but that doesn't mean it's not better for
your bottom line to file early. Depending on how much you earn, procrastinating
could cost thousands of dollars. If it seems overwhelming, call a professional
or go into a local branch with questions—the IRS also has plenty of online
resources that can help simplify things.
Use
cloud software Cloud software is a relatively new method of
payroll administration. To be sure, it’s not for every business, but if you
have more than a handful of employees and need more sophisticated payroll
processes, cloud software could be a perfect fit. The basics of how it works:
Your employees access a secure online portal that logs their hours and
automatically updates payroll information in real-time. You can access your own
account anywhere from any device with an internet connection. Best of all,
everything is updated instantly so you can sleep easy at night without worrying
about missing information or incomplete reports on payday. Automating your
payroll is often more reliable and takes less time than filling out paper forms
manually or paying high fees for human administrators.
Automate
what you can It’s easy to spend hours every week doing
payroll manually, entering each employee’s hours and payments into a
spreadsheet. The problem with that approach is that it requires a lot of time,
and employees who work remotely don’t have a way of keeping track of their own
time—and managers usually don’t have a good way of tracking whether remote
workers are following policy. Automate your payroll system by signing up for
services such as UZIO These tools automatically calculate wages based on hours
worked, company policy and other factors. Plus, they send out W2 forms directly
to employees so there’s no need for you to manage paperwork or file them in
folders in case an audit happens down the road.
Integrate
your Payroll system with HR Organizing payroll can become incredibly
complicated as you scale. Having one system that is integrated with Human
Resources makes it much easier to handle everything in one place, reducing
errors and ensuring you're compliant with employment laws. For larger
businesses, consider building your own payroll
software (or at least integrating it yourself).. Keep compliance in mind:
The last thing you want is getting dinged for missing a payment or failing to
pay an employee on time. Paying someone late could also mean paying higher
interest rates on business loans, which hurts your bottom line even more than
late payments.
Keep
Things Organized One of the most common headaches small
business owners face is how to effectively track employees' hours and make sure
they're paid correctly. If you're running a successful company, time is your
most valuable resource. The more efficient you can be with your time, whether
it's in payroll or something else, will ultimately help determine your success.
By creating an organized system for tracking hours and compiling reports, you
can save yourself valuable time that would otherwise be spent logging
information in spreadsheets or on paper—time that can be better spent elsewhere
in your growing business.
There
are plenty of business payroll services out there that promise they can handle
every detail of your payroll with ease. The truth is, though, that complicated
software and confusing terminology can turn what should be a simple process
into a stressful one. With so many options available, it's hard to find a
service that works for you—but there's no reason you have to put up with
needless hassles. When it comes time for your next payroll, give a closer look
at a professional payroll solution from a reliable company.
