On the surface, payroll might seem like a pretty straightforward process but once you actually start working on it, you’ll see how complex things can get.
If you feel overwhelmed with all the payroll formalities, don’t worry- you are not alone. Almost every company leader or manager experiences hectic payroll systems.
In addition to errors, companies that have less than 20 employees tend to get their paychecks late. So how do you ensure that the payroll process in your company is smooth and accurate? Here are some helpful tips for you.
1. Track tax due dates
The first step to make things easier is to keep a track of the tax payment due dates. You have to report and deposit your income, social security status, and medicare taxes to the concerned authorities all year. This will, of course, depend on the size of your payroll.
For example, if the payroll is large, you’ll have to make tax deposits almost every week. If the payroll is much smaller, you can do it once or twice a month.
Additionally, don’t forget about the dates for the federal unemployment taxes, as well as the local and state-level tax-filing payments. If you want to keep a proper track, maintain a calendar and mark down these important dates.
2. Consider outsourcing
If you feel that managing everything on your own is too hectic, you can consider outsourcing your payroll processes. Not only will outsourcing reduce your payroll costs but will also help to lighten the burden from your shoulders. For the best-outsourced payroll and HR firm, consider https://aurion.com/.
Aurion is Australia’s number one trusted brand and has been supporting all kinds of companies for more than three decades. You get a 100% guarantee of safe and secure data so that there is no data leak or breach and there are all-in-one solutions for every employee’s life cycle!
3. Process the payrolls early
As with anything else, being early for your payroll processing is always the best option. The ideal time is to start processing it about three to five days before it’s actually due.
If you do this, your pressure will be much lower and you won’t have to scramble at the last minute to get things in order. When you process the payrolls early, you get enough time to go through everything and check if all your documents are accurate or not.
Even if there’s a mistake, you can rectify it with a calm mind since you have time. When you plan, keep in mind not only the payday but also any administrative tasks that are required to complete the payrolls before submitting the files to the bank.
4. Document everything
As you might already know, payroll involves a lot of paperwork. Not documenting everything can land you in a big mess.
From the very beginning, make it a habit to keep proper records on paper or on digital files. Start your employees off the right foot by ensuring that all their paperwork is accurate when they join the company.
This will include Federal W-4, State withholding forms, local withholding forms, and Form I-9. While taking care of this, you also need to remember that exempt and non-exempt employees are paid differently according to payroll. So keep documenting everything as accurately as possible.
5. Follow a routine
Lastly, to help you manage your payroll in a stress-free manner, make a routine and follow it as dedicatedly as possible.
Following the same kind of routine can seem boring but will instantly help you to find any data errors and make your work much faster. Make a copy of the routine and check off boxes if necessary.
For example, in round 1, you can verify if the pay period is mentioned correctly or not. In round 2, compare the calculation and verification journal of each employee to the timesheet provided. In round 3, check this journal for any errors and check the total amount of payroll.
Over to you…
Payroll involves processing your employees’ personal cash flows and the seriousness of it all can make any manager anxious. But remember to keep a calm mind and work through it in a proper manner.
Many companies outsource their payroll procedures because it makes everything so much easier. If you want to do the same, look no further than Aurion. Get in touch with Aurion today and check out its amazing features for both payroll and HR!