Happy employees, makes a happy and productive business – Payroll tips
Tracey McArthur, Bookkeeper at Rethink Accounting
No matter how talented, innovative and on top of things you are, managing payroll can be a time-consuming, complex and stressful process. Especially if you take care of your payroll in-house, it can quickly become a nightmare.
Regardless of the size of your business, it’s important to have an organised payroll system in place to protect you from breach penalties and to ensure your employees are paid on time. Happy employees, means a happy work environment and a more productive and dedicated team.
Here are a few tips and tricks to support you if you’re trying to manage payroll in-house:
- Determine whether your employees should be salaried or paid hourly. For most employers, putting employees on salaries is easier to manage. Salaries take the stress out of determining how much your employees are paid each month and keeps everything consistent. However, if you have hourly employees, make sure you have a clear and easy system in place for how you keep track of time and compensation.
- Decide how often you’ll pay your employees. Every employer needs to decide on a pay period for their employees. Pay periods can be weekly, bi-weekly, or monthly. This will help you stay organized and make payroll run more smoothly.
- Classify your employees. Another important payroll tip to follow is properly classify your workers. Whether you hire full-time employees, independent contractors, or interns, if the person is performing work for your company, they typically should be classified as an employee.
- Pick the best software for the needs of your business. When choosing payroll software for your company, try to select an option that’s hosted on the cloud. This will make it easier to access all of your payroll information in one place, whenever you need it. For example, here at Rethink, we enable employers to integrate their payroll software into our system, which boosts collaboration and improves communication during the payroll process.
- Keep track of everything. Another great way to simplify your payroll system is to keep your records and documents all in one place. In fact, there are some federal and state laws requiring employers to hold onto some records for a certain period of time.
- Factor in raises and benefits. Want to make it easier to give your employees rewards? You could give your employees a stipend for childcare, a new laptop, or additional insurance. These are just a few potentially tax beneficial options you can give your employees, which will simplify tax paperwork on your end.
Managing payroll requires patience, organization, and communication across your entire organisation. By following these tips, you’ll be able to streamline your payroll process and become more efficient. However if you decide you and your business would prefer to focus on your strengths, then we recommend engaging an expert.
Benefits of engaging an external expert to support you and your team with payroll
- Payroll expert operating virtually as part of your team
- Understanding the mind-field of Fair Work Act, Legislation and Awards and employer obligations
- Access to a HR consultant
- Access to a qualified Accountant
- Smooth, timely processing
- A neutral person to consult with employees, managers and business owners
- No need to worry about your payroll officer being sick. You will have a team of experts to handle the process
- Someone to ask when you are considering a pay related decision
If you would like to learn more about how Rethink or our payroll service can support you and your business, please phone us on 02 4962 4440 or email firstname.lastname@example.org for a complimentary review.