Company leaders are in charge of managing a number of responsibilities. Many dread completing payroll, as the task requires concentration and understanding of specific compliance regulations. As a result, the obligation continues to be pushed off, making finishing payroll in the future that much more difficult. It’s crucial for businesses to find methods that streamline the practice for payroll teams and increased efficiency. PTM has an inside look at some of the steps organizations can take to improve their payroll process:
Try an unlimited vacation policy
Keeping track of accrual rates and the days employees have or have not taken off can be overwhelming. Taking note of these absences is crucial to payroll, but companies can find ways to ensure it doesn’t eat up as much time as it normally does. One way to do just that is to switch up the vacation/ paid time off policy, according to Entrepreneur. Many businesses are beginning to give employees unlimited days off. This kind of procedure is a nice way to reward hard-working employees and can actually help organizations keep better track of their budget. That’s because enterprises that have adopted unlimited vacation policies usually see workers take less time off than if they had a certain number of days to use.
Don’t forget to audit
If things keep going wrong or if records have a lot of mistakes, it may be time for payroll teams to complete an audit. These regular tests can pinpoint areas that have issues and help businesses find a solution as quickly as possible. Payroll teams can work with organizational leadership to eradicate these problems and discuss long-term fixes to ensure these situations occur less frequently in the future. HR voice suggested three audit steps payroll teams should take:
- Test payroll software to make sure it is truly integrated with the company time and attendance system by taking a closer look at plug-ins and add-ons.
- Ensure all paperwork and processes are running smoothly.
- Avoid employee time theft by installing biometric sign-in hardware to automatically note the time when employee clock in or out.
“Many companies pay their employees every two weeks.”
Establish a set pay cycle
Every organization is different, and chooses to compensate their employees in their own way. The majority of the workers get paid every two weeks, but that’s not always the case for each company in the U.S. No matter if a business decides to pay people more or less frequently than that standard, it’s crucial for them to create a set pay cycle, according to Small Business Advice. On top of that, payroll teams must educate their employees on this schedule. That way, there’s no confusion as to when people will get their checks or see direct deposit funds in their bank account. Consistency is key to streamlining the payroll process and developing a system that will ensure the procedure is as efficient as possible.
Work with a partner
Sometimes, the payroll task can be too overwhelming. Keeping track of ever-changing laws, maintaining compliance, tracking hours and performing audits can become extremely difficult for companies to complete. At a certain point, businesses realize keeping this practice in-house is actually less efficient than outsourcing it. That’s when third-party service providers come in. Organizations like PTM can help employers manage their payroll process and keep all records in check. PTM will perform regular check-ups of the system, integrate with companies’ existing time and attendance software and guarantee compliance with state and federal payroll tax laws.
By following these four steps, companies can develop a payroll practice that is effective and efficient.