Consider these Payroll Best Practices…
Many employers don’t take the time to evaluate their payroll system on a regular basis, which can result in using archaic methods (like paper time cards) that end up costing more in time and money. To ensure that your payroll process is the most cost- and time-efficient, evaluate your current process against the following payroll best practices.
Set Up a Payroll Schedule to Protect You from Unforeseen Issues—Be sure to incorporate a realistic time buffer between the end of pay period and the pay date to protect against unexpected problems (e.g., power outage, flooding, and employers’ absence for vacation or sickness) and to assure timely delivery of checks. Many employers use a 5-7 day buffer.
Implement an Electronic Pay Method—Simplify payroll distribution across all categories of employees, including unbanked, contract, temporary, part- time, and remote by implementing an electronic pay method. Studies show that the replacing costly checks with electronic method of payment can reduce cost for both employers and employees. Direct deposit or pay cards are convenient and far more secure—no more lost or stolen checks that can result in a fraud. Pay cards are also great solution for non-bankable employees and can help eliminate check-cashing fees.
Use an Automated Timekeeping System for Ultimate Efficiency—Tracking and reporting time can have a big impact on the entire payroll system. Employers who implement automated timekeeping systems significantly reduce the cost of employee labor, and often minimize human error and the time required to calculate employee time cards. Automated timekeeping streamlines the entire payroll process and allows for better labor management. Automated systems also open the door to using portals and mobile apps, which are exceptionally convenient for both employers and employees.
Outsource Payroll to Ensure Compliance—Filing payroll taxes accurately and on time continues to be a challenge for many businesses. Successful business owners often outsource payroll for this reason. Enlist the help of a payroll/HR consultant to keep you in compliance with constantly changing tax mandates and HR regulations.