[fusion_text]Payroll is one of the greatest expenses for any organization, but it’s also a necessary element of a successful business operation. Payroll is often complex and time consuming, and it can quickly turn into an administrative nightmare if not done correctly. Businesses of all shapes and sizes are always looking for ways to make payroll more efficient and accurate. It’s important for businesses to find ways to reduce stress, time involvement and error when processing payroll, but doing this isn’t always an easy task. Here are some tips to help enhance your organization’s current payroll process in order to make it more efficient.
Adopt a self-service model
Employee self-service helps manage many HR related tasks that would usually have fallen to management or administrative staff. Employee self-service allows the staff that usually handles payroll to focus on other tasks while allowing employees to manage their personal information. Adopting a self-service model helps to streamline administration of payroll because the HR department doesn’t have to spend time updating employee information, giving them time to focus on other tasks.
Keep policies simple
The more complex your attendance, paid time off, expense reimbursement and other policies are, the more complex your payroll process will be. Keep your policies simple and concise. Also, don’t overcomplicate policies by creating different policies for different levels of staff or create strict, detailed guidelines that will add more administrative complexity to payroll.
Provide electronic pay stubs
Delivering paper pay stubs is time consuming and expensive, and most people don’t even keep paper pay stubs anymore. With the rise of technology, many people prefer to store their pay stubs electronically. For employers, using electronic pay stubs is a way to streamline the delivery of pay stubs.
Use direct deposit
Direct deposit is quickly becoming a standard in many businesses, and if you’re not already using direct deposit for paychecks, consider adopting this model. Many businesses worry about cost, but studies have shown that employers actually save money by offering direct deposit. Although it’s uncommon, you may hire an employee that doesn’t have a bank account. If this is the case, look for a new, more efficient way of paying them, such as offering pay cards.
Establish a payroll calendar
If your business does payroll in-house, consider creating a payroll calendar that lists pay periods, when payroll will be run and other facets of the payroll cycle. You may want to outline what input is needed for processing, when it will be completed and due dates for all tax deposits. This will help everyone in the department be on the same page when it comes to processing payroll, and it allows everyone to see what needs to be done for payroll.
Consider outsourcing your payroll
Outsourcing payroll is increasingly common among businesses today. Processing payroll is time consuming and complex and can cause a headache if not done correctly. Outsourcing payroll is ideal for businesses that don’t have in-house staff to manage payroll or businesses that have limited HR staff. Outsourcing payroll ensures that you remain compliant with all laws and regulations, and it can help increase productivity within your office. When you outsource your payroll, your staff has time to focus on more important business-related tasks while someone else handles payroll.