Own a Business? These Payroll Shortcuts Are Sure to Relieve Some Stress!

Getting the company payroll completed on time is both critical and urgent. It’s one of those things you just can’t put off until tomorrow. While some business owners choose to use a payroll service to handle all the details, others choose to keep it in house.

Here are some payroll shortcuts to make the job easier:

Avoid “rolling your own” payroll system; instead, use a structured payroll software or service to process your payroll. Trying to cobble something together using databases and spreadsheets is the most inefficient use of a business owner’s time. Get a proper system in place from the outset.

Bimonthly or semiweekly payroll runs work best for both business and employees. Avoid running payroll monthly and issuing “advances” in between paydays. This actually creates more paperwork and problems should an employee be terminated.

Make sure all employees are aware of your company’s pay period. Give everyone a calendar showing both the pay period end date and pay date; you’ll spend less time explaining thing this way.

Create payroll forms for leave of absence requests, sick leave request, and vacation requests. As your business grows, it becomes impossible to keep track of these situations unless they are documented.

Keep a separate payroll bank account complete with checks that work with your payroll software. Keeping payroll separate from other finances makes life easier when tracking things like payroll taxes. Electronic filing of payroll taxes is most efficient way to fulfill your obligation, so sign up for this before running your first payroll.

Accurately and timely submission of payroll information is crucial, so stress the importance to every new hire. Give them the necessary tax withholding forms, determine their pay rate, and tell how to submit their payroll hours.

Take time to review the software or payroll service you plan on using. Ask other business owners what they use and how satisfied they are with their choice. Though you can always change later, it’s best to find something reputable at the start and stick with it. Switching providers is no mean feat; the extra effort spent in researching will pay off over the long run.

Accuracy and attention to detail are two critical elements in any payroll process. Also imperative is an understanding payroll management, generally accepted accounting principles, and Internal Revenue Service requirements. The best shortcut a business owner can take is to hire someone who has this knowledge.

Stephen Jeske is a former partner in a 49-year-old family business and writes about issues affecting business owners and individuals including how to manage their online reputation.