How to Manage Employees’ Payroll Properly

Without an effective payroll processing system or the proper payroll software, your business will struggle to keep things rolling on a daily basis. Your employees are the backbone of everything your company offers, but they will only do their part if they get paid for it. 

The good news is there’s a lot you can do starting today to ensure your payroll procedures are working in your employees’ favor. When they win, everyone wins! 

If you’re just starting to hire employees for the first time, you’ll need some help in creating a procedure from scratch that works for both you and your employees. As your business grows, you’ll be hiring more people to join your team. As your employee numbers rise, you’ll have to make minor tweaks to those procedures in order to accommodate the change. 

No matter where you currently are with your business, I am going to give you the three most important pieces of advice I have for any business owner when managing their payroll daily. 

#1. Utilize a Calendar for Everything

They say the best time to plant a tree was 20 years ago, but the second-best time to plant a tree is right now. If you aren’t currently utilizing a calendar to manage your payroll dates, there will never be a more opportune moment than right now. 

A payroll calendar allows for transparency among owners, partners, managers, and employees, while also avoiding confusion among everyone. Your team not only wants to know when they’ll be paid but also what timeframes that payment will cover. 

Don’t be scared to get creative with color-coding and different software. Trust us, your team will appreciate it and you’ll feel more organized throughout the year.

#2. Automate When You Can, However You Can

Automation continues to take over every industry as business owners look for more effective and productive ways of meeting their clients, customers, or employee’s needs. Manual payroll processing is a thing of the past and timecards have proven to be invaluable in recent years. 

With the right automation software, you can free your payroll or accounting team of a large weight off their shoulders. They’ll be more productive at their job by not wasting time writing checks, calculating taxes, ensuring direct deposits are sent, and much more. 

Automation isn’t just the future, it’s what’s happening right now and your company needs to take advantage of it!

#3. Keep Payroll Funds Separate From Everything Else

One of the many horror stories when dealing with payroll is having all of your employees wondering why their checks or direct deposits aren’t going through. You should have a fairly accurate idea of what your monthly payroll expenses will be at all times so you can ensure you have enough cash flow to cover it. 

The same will go for payroll tax funds, which should be kept separate from everything else. When you start dipping into these funds for other things, you open up the possibility of not having enough cash to replace it when it’s time to.

If you would like to learn more tips about how you can take control of your payroll procedures, I’d love to help! Don’t hesitate to contact me and I’ll give you a free consultation. 

References 

Dizon, Anna. “15 Tips For Managing Payroll Effectively.” Fit Small Business, 10 Dec. 2019, fitsmallbusiness.com/tips-for-managing-payroll/.