Payroll software is a program or application designed to ensure smooth, accurate operation of a company’s payroll process. Working in conjunction with time and attendance software (otherwise, manual data entry is required), payroll software performs all necessary calculations for preparing and distributing employees’ paychecks, eliminating clerical errors and increasing overall company efficiency.
How to get the most from your payroll software
By following these housekeeping rules, you can keep your employees happy, ensure each pay run is accurate, and get more from your payroll software.
Keep accurate personal records
It's good business practice to check that you have the right personal information for each employee. It’s your responsibility to maintain employee records accurately for the duration of their tenure.
Personal information that affects payroll can change regularly. But every employee change, like annual leave, promotions, maternity leave or even retirement, must be processed accurately and run like clockwork. Payroll software will help you keep on top of your requirements and work more closely with HR.
Manage employee expectations
Ensure your employees understand their obligations in terms of remaining compliant, such as adhering to your expenses policy or keeping overtime records accurately.
Explain how to document expenses and overtime properly, so your employees don’t leave you exposed. Create a comprehensive set of policies and practices for all issues that affect employees’ pay. This provides a useful guide for employees to follow when inquiring about additions or deductions to their earnings.
Take care of your company's pension or 401(k) obligations
What about the open enrollment period? Depending on your company size, you may be required to enroll your employees in a pension or healthcare benefits package. You may also voluntarily offer new employees a 401(k).
Either way, you need to keep proper records of the contributions made by you and your employee. US government websites are a good place to start when it comes to checking what plans employees need to be enrolled in and the respective contributions.
Ask your bookkeeper for advice
Your company bookkeeper will have a thorough knowledge of payroll compliance and will be well versed with the latest payroll regulations.
They can help you maintain up-to-date records, remit taxes, and file returns.They can also find solutions for discrepancies in records or provide valuable advice on payroll. If you don’t have a full-time bookkeeper, look out for bookkeeping firms that hold business and tax workshops in your area.