Are you a Canadian business owner? Check out our 2020 article: Calculating Payroll Tax in Canada: A guide for small businesses.
Payroll can be a daunting process, especially for those small businesses that decide to complete the task in-house. Companies are always looking for ways to streamline this responsibility, making it easier for the staff in charge of completing the procedure. There are many methods enterprises can adapt to simplify payroll. Let’s take a look at five:
1. Keep policies straightforward and transparent
To keep payroll aspects as easy as possible, business owners should analyze their current company practices. If policies including expense reimbursement, attendance and paid time off are over complicated, it’s safe to say payroll will be, too. Entrepreneurs should make sure these procedures are concise and transparent to all employees. Furthermore, creating one policy for workers at all levels of an enterprise will streamline the payroll process even more. Having to deal with different allowances for people in various roles can give staff a headache.
2. Get organized
Without pre-planning, payroll staff will be overwhelmed. Companies should maintain a level of organization to make sure all important moving parts are taken care of and accounted for. Any necessary paperwork should be kept together to avoid an end-of-month scramble. Those in charge of payroll should also consider creating a helpful internal calendar with all due dates. This schedule should be posted where all members of a department can see it, making everyone aware of critical deadlines. Giving workers a in-depth look at how staff manages the payroll process can help people better understand its difficulty.
3. Go electronic
In-house payroll is difficult enough with its various responsibilities. When paper documents, receipts and pay stubs are added on top of everything else, the process becomes even more difficult. Businesses should contemplate a transition to electronic records. This change will simplify payroll for staff, while also saving employees time and money. Direct deposit is just one way to make the procedure more accurate. Enterprises can simply add a worker’s earnings to his or her bank account and receive an electronic receipt of the transaction.
4. Don’t fear outsourcing
Payroll is a necessary responsibility for any company, but the procedure doesn’t have to be stressful. Businesses need to realize when outsourcing these duties is the smarter, more time- and cost-efficient way. Although it can seem scary for enterprises to lessen their control over this task, payroll specialists can make sure figures are accurate and everything is accounted for. If business owners still fear handing over all payroll obligations, they can decide to outsource specific responsibilities instead of the whole process.
5. Plan for the end of the year
While monthly payroll can be challenging, end-of-year obligations can be even more nerve-racking. Staff should prepare for this period as well as the new year in advance. Payroll teams should make sure they’re up to date with important tax information, including forms that must be distributed to all workers in a timely manner for personal tax filings.
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