4 Important Payroll Tips for New Employers
Payroll is already hard enough for experienced business owners and it can be infinitely more challenging for new employers. That said, it is still something they can do, and they need to find ways to make it less challenging. The good news is that using the right tools and following the best practices can make things easier and keep employees happy. Here are some of the most important payroll tips for a sustainable and healthy business.
Decide Between Salaries and Hourly Pay
Salaries make payroll infinitely easier to manage, which is why many businesses offer their employees a fixed salary. However, a fixed salary might not work for the type of business you run, and you might find paying an hourly rate a better fit. However, hourly pay can complicate things as you now have to track hours. Deciding on which would work best for your business will allow you to find the right tools that can help you keep up with payroll and ensure everyone is paid on time and as expected.
Classify Your Employees
To make payroll more manageable, consider classifying your employees. Doing so can help you avoid mistakes that can have profound tax implications on your employees. If you are unsure how to classify employees, talk to a tax attorney. Classifying employees based on salaries and benefits also makes it easier to pay them. For example, you can pay people who have the same salary or benefits at the same time instead of going through each of them one by one.
Consider a Cloud-based Payroll Provider
One of the best steps new employers can make towards making payroll easier is switching to a cloud-based payroll software or provider. Switching payroll providers and using a cloud-based service comes with several advantages. One is that they make payroll easier since these systems are often intuitive and incorporate technologies such as AI to make things even easier. Second, they allow you to give employees flexibility on how they would like to be paid. Lastly, they make it easier to manage payroll details no matter where you may be and on whatever internet-connected device you own.
If you use outdated services and software, switching payroll providers can be difficult. However, with the correct information and expert advice in how to change your payroll provider, things can get infinitely easier. Cloud-based payroll software providers like PayCaptain make this process easy and provide you with all the benefits discussed above and more. Their software also allows for automated payroll and feedback collection from employees. PayCaptain’s cloud-based payroll software is easy and intuitive to use on the desktop and has Android and iOS apps available too.
Integrate Payroll with the HR System
Once your business starts growing and hiring more people, you will need an HR department or a manager. Integrating the payroll system with their HR system will help avoid mistakes in records if your HR manager was to do this manually.
Ensuring proper employee payroll is one of the critical foundations for a successful business. Accurate payroll also helps you avoid unhappy employees, tax liabilities and complications and inaccuracies in the payroll system.