So you feel like you're drowning in paperwork, and payroll is one of the many things on your plate that never ends? It's time to breathe a sigh of relief. These are 6 tips to make your payroll easier.
6 Tips To Make Your Payroll Easier
1. Establish Your Day
You need to establish a day that's best for you and your company. For example, if one of the owners of your business has the same weekly day off that they have at their full-time job, then make sure you budget time to accommodate them. Similarly, if you have a smaller staff, save time at the end of each week by working later on Fridays instead of a day off.
2. Decide How Much Time You Need To Pay Your Employees
Many times there is no right answer because it's up to each company owner to decide how much time he or she needs for payroll duties. Your best bet is to divide your payroll accounts by at least two employees and then divide that number by the minimum hour for your state's minimum wage. Then, decide how much time you need to devote to payroll goodness.
3. Maintain a Time-Log and Actual Time Payroll Journal
It's super simple to keep track of time in QuickBooks, and it has some great features for calculating overtime that can help you save money for your business as a whole. However, if you choose not to use QuickBooks, there are other options that can prove more useful.
Keep track of the time you spend for payroll by either creating a timesheet in QuickBooks and marking out each 15-minute interval or using a paper journal that lists the day's date along with all of your employees' names and their hours worked.
4. Create an Active Date If Necessary
Some companies, especially those in certain industries like construction or service, might be at a disadvantage on Wednesday nights and/or weekends because these are busy days for your customers. In those situations, it might be better to create an active date when you'll pay your employees instead of waiting until Friday or another day off.
5. Pay Employees Bi-Weekly or Weekly
If you pay your employees once a month, the due date must be the first of that month which is when most companies' tax returns are due. Keep in mind that this means each paycheck's number of days will vary from employee to employee.
Some companies get around this by paying every other Friday, but you might find your staff wants to be paid weekly with equal paydays each week – especially if they have bills coming due every Thursday.
6. Pay Staff at Different Times
You don't want to run out of money in the middle of paying employees, especially if you are paying people on a regular basis. If you pay all your staff on the same day, make sure you have enough money in the bank to cover it.
Payroll management is often one of the most challenging aspects of running a company. It involves a great amount of paperwork and manual calculations that can easily lead to mistakes. Payroll can be a lot of fun, but it can also make you feel as if you're drowning. With these tips, you'll be able to keep your head above water.