Payroll is the biggest concern for all business however it is difficult for the small businesses to get everything right and the people always struggling in payroll processing every month. Payroll processing is tedious and time consuming process. It is tough but it is necessary because you have to process salary every month. Every small business owner is seeking ways to make their payroll process accurate and efficient.
Following are some tips to manage and enhance the process of payroll services of the small business:
Create a policy for payroll
The company must be familiar with all payroll related laws and their rules & regulations. The company should create and implement HR & Payroll policy from its starting to ensure that all employees are aware of what company expect from employees, how the salary will be process, what is the payroll period, what types of benefits company offering or what is the policy related to leave, overtime, bonus, reimbursement etc. A good policy always builds trust in employees and they always feel satisfied from the company.
Set up a payroll system
The aim of a payroll management is to manage and calculate pay checks of employees whether it will be done manually, through in-house automation or through outsourced. Many small businesses are still doing the payroll manually. This process is complex, time-consuming and there are more chances of error. The automation of payroll saves energy, cost and time. If there is a staff shortage and you don’t want to spend money on separate payroll staff, the best solution is to outsource payroll processing.
Small businesses must distinguish between regular employees and contractors employees. Remuneration will be provided to all employees as per minimum wage, payment for overtime, etc. In nut shall all the labour laws etc have to be followed by the company.
Adhere to deadlines
The company must known in advance and list out the important deadlines related to all phase of payroll processing and related compliances. The company must ensure to put in place a good system which alerts about crucial dates for any quick action is required.
Use payroll software for automation
The whole process of employees payroll processing can be automated using the software. These software take care of many things like: employees master data, attendance, payslips, leave details and all payroll related compliances like PF, ESIC, TDS etc. Time tracking module can be used to track the employee productivity, give real-time data on employee attendance, use biometrics, etc.
Correct Employee details
It is crucial to capture the correct information related to employees in Employee Master Data. This includes Employee Name, dates of birth, up-to-date addresses, joining details as well as details of job like attendance, leaves, overtime pay, etc. Any mistakes in employee information will pose potential problems.
Working Capital Requirement
Sometime business is not getting money on time from its customers but company can’t delay the payment of its employees. It will harm the company reputation. The business could be in trouble if customers fail to pay and owners are not able to pay salary to its employees. The company must plan its working capital requirement carefully to avoid these situations
If company is still facing problems in payroll processing even after automation than it will be beneficial for company to outsource the payroll function to a company specialized in payroll management.