Business owners have a lot on their plate. They’re managing employees and tracking business goals, all while handling any curve balls that come their way. Owners want to spend as much time as possible on their principle tasks, and dedicate the smallest amount of time to their administrative duties. This has never been more evident than in the payroll department, which is known to be notoriously tedious and time-consuming.
There are solutions. Below are 7 ways businesses can improve payroll efficiency.
1. Get Your Employees Involved
Staff can offer valuable opinions and new ideas to improve payroll efficiency. Communication with employees pinpoints areas of confusion to specifically outline where improvement is needed. Ask for feedback, weak spots, and areas that are working. Consider training employees in different aspects of payroll and administering minor responsibilities that are easy to do, and ease the burden on the payroll department.
Payroll directly effects everybody in the company. When the whole team has a say in the process, it’s easier to know how to enhance payroll efficiency.
Payroll software works wonders by automating the repetitive tasks so it’s easier to calculate wages. A software platform means less time spent on manual data entry, and less chance of error from hand calculations. Businesses can even use the payroll software concurrently used with other relevant office programs and integrate a less complicated technological solution. Adding payroll technology eases the process of entering hours, benefits, tax deductions, and other matters in this department.
3. Hire A Payroll Clerk
Employ an in-house bookkeeper trained to handle any emergencies, questions, and other issues that arise. Duties in that department won’t have to be divided among staff with a payroll clerk managing it. Companies’ payroll efficiency increases with a knowledgeable expert who understands compliance, calculations, deductions, and anything else thrown their way.
4. Simple Policies
Miscommunication happens easily with hard-to-read policies. When the rules regarding submitting timesheets, expenses, and claiming vacation pay aren’t clearly outlined, more time will be spent cleaning up errors that could’ve been avoided in the first place. Transparent, easy to understand policies won’t have staff confused about how their pay is determined.
Don’t assume all employees know the ins and outs of payroll. A straightforward policy outlining responsibilities for pay, vacation earnings, classification, and the process itself, will have everyone on the same page.
If employees are misclassified, the wrong taxes are deducted, the wrong salaries paid, and the incorrect benefits or expenses are distributed. Employers will then be stuck fixing these errors and readjusting salaries.
On top of these problems in-house, it causes problems with the Canada Revenue Agency (CRA). The CRA doesn’t take worker classification lightly, and errors here result in fines and penalties. Business owners do not want to be responsible for back wages, so ensure employees are labeled correctly at the start.
6. Know the Rules
Payroll compliance is complex and includes a lot of information, which needs to be clearly and fully understood to distribute wages and deduct taxes correctly. On top of comprehending legislation, business owners need to be aware of its amendments, alterations, and new ones created. It’s vital to keep up with to ensure it’s handled properly.
Noncompliance is an even bigger headache. While it’s a pain and time-consuming, it’s worth it for payroll efficiency. The CRA is strict about following government regulations. Employers need to be aware of all their obligations to ensure compliance.
There’s no need to struggle through it alone with trained professionals willing and available to handle this process for you. Outsourcing to a payroll provider provides business’ relief and eases the burden of payroll duties as related to compliance, regulatory agencies, and other aspects. Outsourcing provides peace of mind for companies knowing experts have this department under control.