Make Your Payroll Process Easier with These Three Steps
Improving the efficiency – and subsequent profitability – of a business remains the goal of nearly all managers. One way to accomplish this sometimes-daunting task involves applying process improvement principles to routine functions within the office. The simple task of paying your employees is one area worthy of exploring to make it more efficient.
With an eye towards boosting your company’s operational efficiency, here are a few tips aimed at improving the organization’s payroll process. Leverage these insights to make the business more profitable and ultimately more successful.
Pay Your Employees on Time and Keep Accurate Records
At the risk of stating the obvious, it’s vital to follow a regular payroll schedule with all employees, including temporary contractors. Your staff needs a regular pay schedule to help manage their own finances, and any late payments are likely to lower the overall employee morale. In some states, these late payments are against the law. Scheduling payroll on a bi-weekly or semi-monthly basis works best for most companies and their employees.
Additionally, a key part of any payroll schedule involves keeping accurate records on your staff, both permanent and temporary. As part of this effort, keep track of each worker’s exempt or non-exempt status.
Track All Employee Payroll Deductions Accurately
Sure, an employee’s W-4 form helps ensure your company deducts the proper amount for federal and state taxes from each paycheck. Your HR staff needs to fully understand the legal requirements for payroll deductions, both federally and in your state. Additionally, other deductions might be necessary for insurance premiums and other reasons. These extra deductions and signed consent forms from the employee, if required, need to be tracked accurately.
Give Your HR Staff the Proper Training in Payroll Processing
Ultimately, the right training helps make your HR staff more efficient and productive, especially when it comes to payroll processing. When considering the regular changes in federal and state tax laws, consider holding recurring training classes to ensure your staff stays up to speed. A well-trained HR team is critical when your company has a lot of remote workers in different states.
Understanding how to handle and pay tax-related withholdings to federal and state agencies is another important topic for which your HR team likely needs training. In the end, a smooth payroll process leads to happy employees and a more productive office.
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