Let’s accept it. Payroll processing is challenging. Your payroll processing team has to gather employee information, calculate employees’ gross and net pay, and ensure they are withholding the right amount of money for federal and state taxes. These are time-consuming tasks.

Changes in the tax structure, employee regulations, and compliance issues can make payroll processing time-consuming and difficult to execute. It is important that you revisit your payroll processing at regular intervals to weed out operational inefficiencies and replace them with efficient processes.

Here are some ways to improve your payroll processing from Virtual Jeannie Bookkeeping.

Align Different Pay schedules

Many businesses maintain different pay schedules (such as weekly or bi-weekly pay periods for contract employees and monthly paydays for management). Maintaining different pay schedules is time-consuming and can also lead to errors.

To prevent errors, minimize pay cycles. Make sure all your employees are paid on the same pay schedule. This will prevent the duplication of processes and resulting confusion. Your payroll processing team will be able to focus on having accurate payroll statements by consolidating pay periods to be uniform across the business.

Stay up-to-date With Federal and State tax requirements.

Every year, numerous businesses fail to meet filing deadlines or miss certain filing documents and are slapped with hefty fines. To steer clear of penalties, you need to stay abreast of tax rules and regulations.

Periodically visit your payroll processes to ensure they are in compliance with the most recent tax laws. Make sure your employees engage in ongoing learning on a regular basis to stay up-to-date with tax laws.

Simplify Your Payroll Policy

Your payroll policy should be simple to understand. Make sure you have clear and brief policies for attendance, expense reimbursement, and leave of absence. Consolidate or streamline your existing systems. Look for and plug loopholes before they become a major headache.

Implement a transparent payroll policy. Make sure every employee has information regarding employee classifications, how salaries are determined, the functioning of the payroll process, payroll error rectification process, and how overtime wages are calculated.

Outsource Your Payroll

If you do not have the time or resources to streamline your existing process or build a new one from scratch, consider outsourcing your payroll to a payroll processing company near you.

You can outsource your entire payroll processing or certain processes to a payroll specialist with in-depth knowledge of payroll processes, bookkeeping, and accounting.

Outsourcing services will save your business in human resources costs as you will be able to operate with a relatively smaller team. Outsourcing also enables you to leverage the expertise and experience of subject matter experts, which leaves your employees with more time to focus on their core competencies.

Virtual Jeannie Bookkeeping Services, Inc offers cost-effective bookkeeping and payroll processing services. We have a package for every budget. To discuss your requirements with our team, call (707) 664-1425.