Running a company requires executives to be on their toes all the time. These leaders have many responsibilities to manage, several of which necessitate keen attention to a business’s budget. From providing employee health care to sending out potential bonuses, payroll is an important obligation that every organization worries about. It’s critical for companies to ensure they have the appropriate amount of funds available any time they’re needed. PTM has some tips for organizations looking to improve the management of their payroll budget:
Open a second bank account
With so many expenses to worry about, companies have to be increasingly cognizant of their funds and how they’re dispersed. Payroll is a vital and separate cost, and it must be treated as such. As a result, payroll teams should create a second bank account that operates solely for payroll and payroll tax purposes, Forbes suggested. Keeping this money separate from that needed for general business costs is a smart way for organizations to better control their budget.
Implement a payroll solution
The days of having to calculate sums of money using a calculator and a pen and paper are long gone. While many companies haven’t used a system that rudimentary in years, others may have outdated payroll processes that just aren’t cutting it anymore. For those organizations, it may be time to update that technology and introduce a new and improved system. Businesses should make sure this software makes the process easier, not more difficult. Therefore, there are certain elements executives should look for, according to HRZone:
- Manual processes the solution can automate
- Staff involvement and understanding
- Ability to move all stored records to new software
- Enough time to complete testing of the technology
With these considerations in mind, organizations can select the best payroll solution to meet their needs.
Work with a third-party provider
Even with new software in place and a separate bank account, businesses may still find payroll too overwhelming. With federal and state tax compliance to keep in mind, as well as a number of other obligations, it’s easy to see why the task can be so challenging. Companies have the option to outsource this responsibility to a trusted service provider, like PTM. These partners come equipped with experience and professionalism, and can tailor their services and tools to meet the needs of each business. Working with a third-party can help companies relieve the stress associated with payroll and leave the obligation in the hands of trusted payroll experts.
Controlling their payroll budget is an important step for many companies. Luckily, they don’t have to complete the task on their own. Third-party service providers like PTM can handle all of the responsibilities of managing payroll, including making sure accurate and appropriate funds are available.
The upcoming SaaSHR/Kronos Conference – held in Arlington, Virginia from Sept. 14-16 – will feature a session on budget control and equitable salary treatment. PTM will be on hand to lend its own advice for those parties looking to partner with a payroll service provider.