Payroll processing—are you up to speed?
If you’re an employer, you probably know that payroll processing can be an arduous and time-sucking task. Payroll processing may require you to follow certain steps, like inputting employee information, double-checking your entries, and generating pay stubs.
Done manually, payroll processing can result in critical errors, some of which could subject your company to federal penalties.
However, automating the payroll process can help you stay organized, pay employees on time, and improve operational efficiency. Research shows that automation can help reduce administrative tasks by up to 49% for HR employers and 30% for HR professionals.
So, if you’re looking to streamline your payroll operations, you’ll want to embrace automation. Here are some handy tips for automating your payroll process.
1. Prepare Your Workforce
Human beings are hardwired to resist change.
According to Peter F. Drucker, the father of management, part of this resistance is due to the fear of the unknown.
Your employees might resist the change to automation due to the fear of the unknown. They might see automation as a threat that will push them out of their jobs. As the employer, you should prepare your workers for automation by presenting the benefits it will bring along.
Help them understand that automating the payroll process will save them the time they spend performing repetitive tasks while allowing them to focus more on the tasks that machines/technology can’t do.
2. Eliminate Paper in Your Payroll Process and HR
As the move to digitization intensifies, you’ll want to join the digital transformation train to remain relevant and competitive in the ever-changing HR landscape.
That said, you may have to automate the HR process at some point in time. Start early by eliminating paper from your payroll and HR.
When reviewing what’s working and what’s not working in your existing payroll process, look for areas still reliant on paper-based record keeping. Paper records may expose your company to risks of payroll errors resulting from manual data entry and miscalculations. Eliminating physical paychecks, timesheets, and paper stubs can be a huge step in that direction.
And you don’t have to invest a fortune to achieve this. Instead, you could start using a simple online check stub maker to create professionally looking pay stubs for your employees. And the best part; it’s pretty simple to use as you can create pay stubs in as little as 2 minutes!
3. Streamline Your Payroll Systems
Pay attention to the payroll system you choose. You’ll want to get payroll software that integrates and works with your existing systems flawlessly.
For example, having a great payroll software package can be problematic if it doesn’t integrate with your company’s accounting software. And having many systems for tracking, capturing, inputting, processing employee hours, etc., can create pain points.
Having multiple systems can end up complicating the payroll process rather than simplifying it. A system that can consolidate all the processes is easier to use.
4. Ensure Compliance with Your State’s Federal Tax Requirements
Payroll withholding rules and regulations change every year. Therefore, it’s important to keep abreast of these rules to avoid trouble down the line.
For example, the potential costs to businesses that fail to file certain forms or meet deadlines can be devastating to small businesses. In addition, some of these tasks, especially those involving tax calculations, can be difficult to calculate and submit before the deadline.
However, an automated payroll solution can help ensure that payroll deductions are calculated correctly and reported on time. So, make it a habit of reviewing your payroll processes regularly to ensure compliance with your state’s regulatory requirements.
The Bottom Line
Automating the payroll process can go a long way in helping you streamline workflows, ensure all processes are consistent, and reduce errors.
But even the most sophisticated systems require human intervention at various levels. So, make sure to prepare your employees about the move to automation and keep abreast of the changing rules and regulations to ensure compliance with your state’s payroll laws.