Perfecting your payroll management processes is important if you want to streamline cash flow within your company, keep employees satisfied by paying them on time and avoid the wrath of regulators.
Because of all this, it makes sense to prioritize improvements where possible, so here are just a few best practices to adopt if you are not doing them already.
Don’t cut corners with documentation
Arguably the most essential part of any payroll management strategy is to make sure that you actually document the details of the policies you put in place. If you don’t, it’s hard to ensure that they are being followed by team members.
Writing up a manual which outlines the ways you want things done may sound tedious, but it will deliver excellent results in the long run.
Single out significant dates in the payroll calendar
Deadlines can fly by if you do not make a point of noting them all clearly well in advance, rather than trying to tackle them one at a time.
Each financial year, go out of your way to highlight significant dates, such as deadlines for tax return submissions and other types of regulatory reporting including certified payroll reporting.
Part of putting major deadlines in your diary must also revolve around setting alerts and reminders so that they aren’t forgotten. There are all sorts of software solutions to enable this, so there really is no excuse.
Embrace payroll automation
Many of the must-do duties in payroll are mind-numbingly boring and repetitive, which of course means that human error is a major factor to keep in mind.
Thankfully you can make your payroll processes far more precise and efficient if you adopt solutions which automate the more menial, manual tasks.
Again, there are a cavalcade of competing payroll software packages which aim to handle automation for businesses. It is simply a case of comparing your options, considering your needs and finding one that fits the bill and your budget.
Use real-time data collection
Another common complication that comes with payroll management is finding that you have a deluge of data to deal with at the end of each month. If employees all submit claims for expenses, overtime, or simple attendance information simultaneously at this point, it is easy to get overwhelmed.
Using solutions which monitor and collate this information from moment to moment will save you from this scenario, and also make your tracking of how employees use their time more precise, which can tie into performance monitoring as well.
Lastly, it makes sense to throw off any vestiges of the old, analogue approach to payroll practices, because these are almost universally less efficient than their digital equivalents.
Providing digital paystubs, digital money transfers for salaries and eliminating physical paperwork will be crucial to effective payroll management in 2022 and beyond.