5 Small Business tips for a Streamlined Payroll Process
5 Small Business tips for a Streamlined Payroll Process
If you are like most small businesses, you spend a ton of time and resources on payroll and paying your employees. As most entrepreneurs have found, it is full of booby traps and ambushes when talking about taxes, fees, unemployment and other government regulations. We are here to help our fellow customers by outlining five of the most efficient and helpful tips.
Use Direct Deposit
Believe it or not, some businesses still write payroll checks by hand. But the thought of employees losing the check, or making an error on the check certainly goes through the check writers mind. Although it may make sense for a staff of 5 or less, it is not practical for a larger organization. The ability to deposit funds directly into employees bank accounts most certainly has streamlined the process. Designed to keep the books organized and mostly error free.
Easy to Use Payroll Software
Not to be confused with “Payroll Software Degree from MIT”. Most companies have a pre-conceived notion that payroll software is expensive and hard to learn. The newer software on the market is click and play friendly. You can calculate, file and pay your payroll taxes, automatically. Some are made for mobile where you can run payroll in minutes right from your smartphone.
Hire a Payroll Company
Why would you want to do this? Three good reasons. 1) Free Up Your Time, 2) Reduce Costs, 3) Avoid IRS Penalties: Payroll processing by hand is a time-consuming process, which would be better served pursuing revenue-generating activities. The direct costs of processing your payroll can be greatly reduced by outsourcing. On average a small business with 10 employees can spend $2,500 per year in direct labor costs associated with payroll. Payroll can be a complex adventure and it changes from year to year, so working with an experienced payroll provider can protect you from costly mistakes and IRS penalties.
Electronic Tax Filing
Switching to paperless is a must if you want to make sure you meet tax deadlines. No need to worry about long lines at the post office, postage costs, or your mail getting lost. Most online filing companies will give you instant confirmation of delivery. As we wade deeper and deeper into the technology pond, all states will eventually be requiring online filing. Another great reason to keep your company ahead of the curve.
Consolidate Your Pay Schedules
This comes into play when there are both salaried and hourly employees. They are usually on different pay schedules since hourly workers are paid every other week and salaried workers are payed bi-monthly. This sounds easy but there is still room for errors. A good software will keep you on the straight and narrow. By paying all your employees on a set schedule, you’ll can easily cut payroll costs, alleviate employee frustration and sleep better knowing you are compliant with all regulations.
Moving Forward
In an ever changing business environment, you need to keep up with technology and innovations. This could be what separates you from your competition. This could be why your employees chose to work with you. Your younger employees have relied on technology and are comfortable knowing that this technology is what is responsible for their pay checks, deposit and tax filing. Even with these five tips, a business owner needs to be involved and provide routine checks to make sure the machine is well oiled.
Need help with payroll or your day to day operations? We have spent the last 20 years building relationships with local companies and are proud of the networking circle we are involved in. We would be happy to refer you to one of our strategic partners.
Our motto is “Moving Forward” and it is our desire to help your business positively grow in many ways. Get started today by calling us at 608-819-8666 or visit us online anytime at www.MotusCC.com.
