Payroll is quite often the most considerable expense any business will have to manage. While it’s true that wages and employee taxes make up the lion’s share of payroll, the hidden costs of payroll processing are still overwhelmingly impactful to your company’s bottom line. Here are four ways you can reduce your overall payroll burden.
1. Consider outsourcing
The fact is, while payroll processing is essential to your business’s survival, it is not a revenue-generating function. Outsourcing payroll to your favorite accounting firm can free up your time to focus on the growth-driving factors of your business. Here are a few ways you can save on your payroll expenses.
2. Avoid payroll errors
Overtime, commissions, deductions, PTO, and more have to be taken into account when calculating pay. These many variables put a lot of pressure on your payroll admins, especially if they have other duties within your organization.
3. Utilize direct deposit
Direct deposit is good for your business, good for your employees, and a boon to privacy all the way around. One lost paycheck on behalf could lead to a lot of risk for your company and your employee’s privacy.
Skip the hassle of printing, signing, stuffing, and dispensing checks. Set a timeline for when all of your employees need to provide their banking information to you, then make the switch to direct deposit.
4. Quantify your time
Compensation packages are essential to keeping the best employees on your team. However, many payroll tasks can burn a lot of time for minimal benefit. How much time do you spend calculating raises for low-level employees? Could your payroll provider offer you a range of percentages to reduce the hands-on time requirements you have to put in on every employee?