My business has been growing at a rapid rate and I am hiring a good amount of new employees. I’m a little concerned about how this is going to affect my payroll process. Do you have any advice for me on how to reboot my payroll?
Managing the payroll of a large company can be overwhelming. Your employees depend on their paychecks and their accuracy. Below are some key things for you to consider.
It May Be Time For Software
If you are manually managing the payroll of your expanding business, you and your Human Resources department should be ready for an influx of new paperwork. Frankly that’s an overwhelming burden to a lot of your team and opens the door to a room of potential errors. The smallest mistake in your data entry could cause your company to lose money, not to mention time. If your business is expanding that quickly, it may be time to invest in payroll software, QuickBooks for example. This will help you save funds, time, and headaches.
Choose Your Best Schedule
In rebooting your system, it is important to choose the most effective schedule for distributing pay. The most common frequencies of pay are weekly, biweekly, semimonthly, and monthly. Choosing the right schedule for your company will help streamline your process and aid your in organization. My team would be happy to help you figure out the most effective schedule for your business.
One of the most common mistakes that occur is the misclassification of employees as independent contractors. When this happens, your company ends up avoiding paying certain taxes, and your employee’s taxes not being properly withheld. Your employee might also lose out on important benefits like protection and health insurance. It can be a fine line between an employee and independent contractor, so be sure to have every employee classified correctly.
Communication Is Key
No matter how small your business is right now, it is vital that you have written communication available to all of your employees. A policy handbook that details your rules and guidelines regarding payroll is a good way to go just in case a complaint is ever filed.
Did you know that over 40% of small businesses pay about $1,000 a year in payroll related penalties? You don’t want to be in that 40%, so f it all seems to much to handle, you can always utilize our remote services for your payroll needs. My team and I are here to hold your hand through the payroll process by working together to assure your stress free success. We supply remote payroll services for you, as well as provide up to date reminders regarding taxes. Contact Margo’s today to find solutions to any of your payroll and bookkeeping concerns.