Managing payroll is a critical component of your company’s operations. It can involve several requirements, such as processing employees’ paychecks (including salaries and bonuses, as well as tax deductions), complying with labor laws, and maintaining adequate documentation. Company leaders and managers must effectively manage the payroll process because it can directly impact the business’s financial health.
How to More Effectively Manage Payroll
In 2020, it was estimated that the IRS (Internal Revenue Service) assessed over $31 billion in civil penalties from companies that did not comply with employment income tax requirements.
Will your company be next on their list?
IRS tax penalties can significantly reduce your company’s revenue if you do not adequately process employee payroll. With that in mind, there are several processes that your company could use to manage its payroll system better. These can include one or more of the following:
- Creating a payroll calendar
- Allowing Human Resources staff to attend payroll training events
- Staying updated on the federal and state tax procedures
- Standardizing turnover processes
- Automating the payroll process
- Not borrowing from payroll tax funds
- Distributing payroll duties among your company’s Human Resources Department staff
- Observing transparency in your payroll process
- Documenting your payroll process
- Using employee scheduling and time tracking software
- Auditing your payroll process
- Hiring qualified payroll staff
- Completing onboarding paperwork on time
- Soliciting feedback from employees regarding your company’s payroll processes
- Outsourcing your company’s payroll tasks
Accurately delivering your employees’ pay can represent your brand and signify your organization’s ability to maintain high employee retention. This, in turn, could help to attract good quality workers who remain at the company for the long term, which reduces the cost of regularly training new employees.
Learning how to manage your company’s payroll system should be at the top of all managers’ to-do lists. Developing a payroll strategy that supports your company’s culture can help your firm always stay on top of payroll tasks.
Is Your Company Using the Best Payroll Processing System?
If your company’s payroll system is outdated, it could be why employees leave the business and look for other opportunities where their pay is more reliable. Many resources are available to help you learn more about bringing your business up to date with payroll processing.
