We know! You aren’t looking forward to your payroll duties. Payroll is one of the most important obligations that a company has. You want to make sure you issue payments, file taxes, and record finances without delay.
But these obligations are time-consuming and many companies fall behind.
So what can you do to improve payroll efficiency?
This guide will show you the top tips to ensure you meet payroll obligations in an efficient manner.
Let’s start with maintaining payroll records.
1. Paycheck Stubs
You should create a paycheck stub every time you pay employees. This is a record of how much an employee earns each pay period. It will also include taxes withheld from federal, local, social security, and medical taxes.
This is an important record for both the company and the employee. Make sure to create this paycheck stub as soon as you issue a payment.
2. Always Update Your Payroll Records
One of the biggest issues occurs when you send a W2 to the wrong address. Or you forget to update an employee’s bank account and they don’t receive their paycheck on time!
To remedy this, you want to always update your payroll records. Create a spreadsheet where you have a list of all your employees. This spreadsheet should also include their mailing address and bank account information. Whenever either of these changes, you must change it in your spreadsheet.
3. Keep a Payroll Calendar
If you’ve ever missed a payroll deadline, you have to create a payroll calendar. In this calendar, you have to mark the cutoff date to issue payments.
You also should write down all IRS deadlines for payroll. As taxes take time to complete, you can schedule days to work on tax filings. Spread these out over several days until you complete them.
You also want to keep track of when to issue W4 and W2 forms. W4 forms should get issued as soon as you hire a new employee. W2 forms should get sent shortly after the new year.
4. Consider Streamlined Payroll
If you want efficient payroll you want to consider the benefits of streamlined payroll. This means that you have a dedicated payroll department to handle different payroll tasks.
For example, you can have a payroll manager to oversee all tasks. The payroll manager will also revise all work. Everyone under the payroll manager must notify them when they complete their tasks. One group can focus on paying payroll taxes.
Another person can be in charge of the payroll spreadsheet. A third person can keep track of all employee expenses and should share this with the accountant.
When several team members work on payroll obligations, you can be sure that it’ll be an efficient payroll process. There will be less stress and fewer errors as well.
Ensure Payroll Efficiency
If you follow these 4 tips, you can ensure greater payroll efficiency at your company. You might also want to consider a great payroll software to help you complete these tasks.
Please share this guide with your fellow business owners. You can also find more great business tips on our website!