Payroll can easily be the most complex task that a business must handle. Organising information, ensuring it is accurate and then completing the process of actually paying staff can be challenging when you are trained in payroll. If you have someone managing payroll as part of their day to day job, it can be a huge drain on time and resources. But here are a few tips to help reduce time processing payroll and simply everything.
Have a simple payroll policy
Sometimes, the very payroll policy a business creates is the reason for problems – it is more complex than it needs to be. That’s why it is important to have a clear and simple payroll policy that all employees are aware of. It will involve confirming things like how payroll is processed, how employees are classified, how wages are worked out, where overtime is calculated and when pay it made. This should be laid out in a shared file accessible by everyone, so all employees are aware of it and part of their contracts where relevant.
Create a payroll system
Once you have a policy in place, it is then a case of organising a process to manage payroll. Depending on the size of the company and the number of employees, this might be something as simple as a spreadsheet-based system. However, advances in the speed and security of payroll make this a much more time-effective way of running payroll. Some parts of the process can even be automated to cut down on the workload.
Arrange online access
If you decide to use software, choose one that allows your employees online access. This might be for something as simple as checking their pay note or logging overtime hours. Alternatively, it might be more complex, allowing them to check their contributions for national insurance and pensions. A secure system will allow them to have personalised log-in information and check their own personal information. They can even update or correct information if there is a change such as a change of address or an update to their personal details that impacts their tax code.
Have a third party check it
Around one-fifth of problems with payroll comes from accuracy or timing of inputs – if these go wrong, then the whole process can fall apart. One tip is when you have compiled everything needed for payroll, have a third party check it through. This is often a payroll company who are experienced in working with payroll and can spot those inaccuracies and problems far quicker than someone not trained in it.
Outsource your payroll
The most practical solution for businesses of all sizes is to outsource payroll entirely to a specialist who can handle the whole process. When you use a payroll specialist, you get access to the systems and software that is needed to run an efficient and simple payroll. You get to use people who handle payroll every day and are up to date on the latest rules and regulations. Lastly, you can feel assured that everything will be completed on time and that employees always receive the right wage at the right time.
For more information about Trace Payroll’s outsourced service and how it can save your business time, get in touch by calling us on 0845 873 5619 or you can use our online contact form.