The payroll process is by far the most crucial process in your firm’s undertakings and managing it is a stressful task as you’ll need to maintain proper records of your employees’ salary packages, their leaves, performances and a lot more.
With one potential mistake, you might lose a good employee, hence there’s no room for errors when it comes to payroll management. Not to forget, as the business owner, you might also wish to pay your workforce on time for their services towards helping your firm. Therefore, automating payroll is quite helpful in such a scenario. This will not only eradicate manual errors but will also help you in saving big on not hiring additional HR staff for updating your workforce’s compensations.
But there are many other small things that can help you in managing payroll accurately and on time. So, let’s look at top 3 little things that can make a big difference to your payroll.
1. Keeping a Check on Periodic Payouts
Now, under contract, there are daily, weekly, bi-weekly and monthly payments. Each of them depends upon your company policy and payout durations. If your company is paying out its employees or contractors weekly, that would sum up to 52 payments to that one worker.
Now every employee might not have the same salary turnover. And for someone to manually compute and update this information for financial documents is tremendously stressfully. Missing or miscalculating such payments can lead to bringing down your workforce’s efficiency.
Hence, instead of putting such a burden on the HR department, you can use a payroll management software to check all the payouts. This software can store in your individual employee’s data such as workdays, leaves, performance, reviews and their salary according to your payment policy.
Payroll management systems are cloud-based and can also reduce the work regarding payment. Instead of having to pay the employees via cheques which they have to cash in manually through banks, you can opt for online payment. Employee payroll through such HR management software can streamline the salaries to credit directly in their online bank account. Not to forget, you’ll also benefit from receiving online receipts that are reliable for tracking their salary payouts.
2. Double Checking the Contracted Salaries to Avoid Miscalculations
Miscalculating your employee’s salary is a huge no-no. While overpaying them might bring up several errors in your books, underpaying will have them lose trust in you.
You might have heard of the West Marine Products incident where this US-based company had to face a fine of $435,00 through a lawsuit from their employees. As the report says, they were allegedly underpaying their employees where 88% were receiving 50$ less than their contracted salary.
By incorporating a payroll management tool, you will eliminate the possibility of inconveniences in your work-space by errors in remuneration. You’ll also be able to stay at peace as the software can store data for hundreds of employees and their payment rates. This software is not an expensive investment as the advent of technology allows for all big and small businesses to implement it into their HR management. And with proper calculation, not only are you paying the salaries on time but also helping to keep the financial books in balance.
3. Being Smart with Data – Backing Up Payment Records
Make sure to always back up your payment and employee records, as you might require them for future usage. The protection of company data is a vital responsibility that HR undertakes. While the HR department can have multiple work-related chores on a daily, you can opt to streamline old and present data through an online payroll tool that can take real time backups of your data.
Since digitalization allows for a cloud-based system, your data remains under the authenticated security system, and away from fraudsters. You’ll also have a lesser risk of losing such documents and files.
Implementing these 3 things will help you in reducing technical errors and calculation mistakes in salary payout. If you’re running a start-up, you might wish to streamline the payout services even for the now-small workforce, otherwise in the near future, you might face more challenges. These 3 things will make a big positive difference in your business’ activities.