Image Source: Amy Hirschi
No matter what type of business you may run, you will undoubtedly spend lots of time processing your payroll. This is because processing payroll is a task that requires multiple steps, such as double-checking all submissions, taking the time to ensure all employee information has been entered accurately, and more. Therefore, payroll has developed a reputation for being one of the most tedious and time-consuming tasks within the business realm. With that in mind, here is a list of eight ways to save time processing payroll.
1. Get Organized
Just as with many other tedious tasks, taking the time to get organized now can save you lots of time and effort in the future. To do this, you simply need to make a list of the various tasks you need to complete, and when they need to be completed. Ideally, you will store this list on a digital device that will then send you notifications and reminders to help you stay on track.
2. Tips for Creating the List
When it comes to creating lists of any kind, the devil is always in the details. The more details you include while making the list, the easier it will be when you are completing the tasks. Here are some details you should be sure to include when you make a list of tasks to complete your payroll.
- Review time and attendance.
- Review and verify the hours for each employee.
- Calculate payroll/withholding taxes.
- Pay employees using their preferred method of payment.
- Provide employees with pay stubs.
- Double-check everything.
3. Verify All Employee Information
No matter what type of company you work for, employee information is always subject to change. Moreover, these changes sometimes go into effect without notice or warning. For instance, an employee may have a change of address, phone number, or bank information between the time you onboard them and the time that their information is input into the system. Sending incorrect information may cause you to have to redo various aspects of the process. However, by taking the time to verify all information before adding it to the system and encouraging employees to reach out with any relevant changes of information immediately, you can avoid this issue.
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Centralizing your records can be an incredible method of saving time on processing payroll. This is because having records that are not centralized means that you will have to take the time to deal with piles of documents and/or spreadsheets, manually enter various types of data, and more. This makes the payroll process much more tedious and time-consuming. However, by going digital or switching to payroll outsourcing, you will be able to access all of these things at the click of a button. This also helps to reduce the possibility of losing files and other pertinent information.
One of the top ways to save time processing your payroll is through automation. By automating as many aspects of your payroll processing as possible, you will save lots of time and effort. For instance, you can invest in full-service payroll outsourcing, which can handle tasks such as calculations, as well as collecting and remitting payroll taxes. Alternatively, you can also automate other payroll-related tasks such as the number of hours worked and attendance.
Streamline Your Payment Methods
Although the various methods of payment have evolved over the years, many companies still use antiquated payroll systems, which includes sending out paper checks. While some may be much more comfortable using older payment methods, doing so is one of the top ways you waste time in terms of processing payroll. By switching to more modern payment methods, such as cash, pay cards, direct deposit, mobile wallets, and others, you can drastically reduce the amount of time you spend on payroll processing.
Say “No” to Manual Calculations
Another way in which some companies are still wasting time on payroll is by relying on manual calculations. This is also due to the fact that many business owners feel safer using the methods they have been using for decades. Despite the peace of mind some may feel by requiring manual calculations, doing so is one of the biggest time-wasters when it comes to processing payroll. While it may be uncomfortable at first, switching to software or payroll outsourcing can be one of the best things you can do to boost efficiency and optimize the time being spent on processing payroll. By using payroll outsourcing, software, and other digital options, you will not only save time and money, but you will also reduce the risk of human error.
Switch to Salaried Positions
Although it is not always possible, if you can switch to salaried positions, it can save you lots of time in terms of payroll. Since salaried positions do not require payroll calculations, you will eliminate a lot of the work being done in terms of payroll processing. If you have positions that could benefit from switching to salaries, this is definitely something worth considering.
Offer Unlimited PTO
Although this may sound a bit unrealistic, the concept of unlimited PTO is one that is slowly gaining traction. Also, this notion is not as wacky as it sounds. Offering unlimited PTO can provide companies with tax breaks while also limiting the number of codes involved in payroll processing. If you are struggling to find ways to save time on payroll processing, this is definitely an option to consider.
How America’s Back Office Can Help
Overall, if you are trying to think of ways to save money on payroll or other related tasks, we’re here to help. Serving medium and small businesses for tasks such as tax management, payroll outsourcing, human resources, employee benefits, and more, America’s Back Office is your go-to solution for things such as automation and payroll outsourcing. Rather than sticking to antiquated methods and continuing to waste time and money processing payroll, entrusting these services to us can be one of the best methods of moving your company forward in a more lucrative direction. Contact us today for more information.