If you’re not sure how to manage payroll effectively, you’re not alone. Many business owners and HR managers are unsure of the best ways to execute their payroll processes. It’s especially challenging, since HR best practices are always changing, and payroll rules are always being updated.
If you’re looking to maximize the efficiency of your HR department, use these five tips.
1. Stay Organized
Organization is essential when you’re hoping to maximize your payroll efficiency. When your payroll processing documentation is arranged in an orderly fashion, your tasks become much easier to complete in short order.
Your business also needs to be organized to avoid missing important dates. A payroll calendar could help you keep track of important dates, such as when you must remit payroll taxes or when certain forms are due.
Not only will this remind you of your deadlines, it also provides a visual reminder of when tasks need to be completed to meet those deadlines. With a calendar, you can plan your time more effectively and limit stress related to payroll tasks.
2. Get Technical with the Right Software
Technology has made payroll processing easier than ever. If you’re searching for ways to manage payroll more effectively, the answer might be adopting the right software.
There are many different kinds of software your company could use. Payroll tax deduction calculators can help you determine how much you’ll need to deduct for your staff. This includes calculations for federal and provincial tax withholding. It may even help you calculate deductions for benefits or social programs like the Canada Pension Plan.
Other payroll software reaches beyond math. The right software could assist you in tracking employee time off, generating reports, and even managing forms, such as records of employment, Canadian T4 slips, or American W-2s. When everything’s consolidated, it’s easy to verify information, track tasks, and resolve any discrepancies you might spot.
3. Stay on Top of Relevant Payroll Rules and Regulations
Legislation surrounding payroll is always changing. In order to avoid potential penalties or legal issues, you need to stay up to date on all relevant payroll rules and regulations. Staying up to date can also help you avoid costly processes like auditing or correcting tax filings when tax season rolls around.
Luckily, there are many resources you can draw on to keep up with your payroll compliance. In Canada, you might look to the best practices issued by various organizations like the Canadian Payroll Association. You may even want to call on the expertise of a professional employer organization (PEO).
4. Keep It Simple
Payroll itself has many steps and tasks, but that doesn’t mean your processes have to be complex. Simplifying your payroll process can help keep things running smoothly, with less effort from you and your HR department.
One example is switching from checks to direct deposit. Instead of having to track all the checks you need to prepare, issue, and hand out, you can keep a simpler electronic documentation of your bank transfers. This cuts down on paperwork, makes the transaction faster, and even helps you save on supplies.
5. Keep Calm and Get Help from the Experts
Managing your own payroll may be stressful, yet many business owners feel they have to handle this task in-house. The good news is you don’t have to.
There are plenty of experts out there who could help you streamline and simplify your HR and payroll tasks. A PEO, for example, can assist with payroll, compliance, benefits, and so much more.
Getting this outside assistance is even more beneficial for international employers. Since the expert professionals on the team already know their way around the payroll system, they can help you navigate with ease.
Ready to start managing payroll more effectively? Get in touch and discover the difference expertise can make for your business.