Processing payroll is no easy task. There are several things you can do to minimize your risk of errors and omissions. As your company grows, this process will become more difficult as well. Effective management is a necessity when it comes to payroll processing:

Here are some ways to make payroll processing easier:

  • Be sure to stay on top of any salary changes
    • Prior to collecting the record of hours, gather and verify any changes in employee salaries.
    • Also make necessary adjustments for hirings and firing.
  • Follow a consistent method for computing salary (whether manually or by payroll software)
    • It’s essential to use an accurate and consistent procedure for payroll.
    • Overtime, bonuses and commissions needed to be included.
    • Taxes (such as Federal, Social Security and Medicare) should also be deducted.
  • Use a reliable system to record employee time
    • It’s important to keep a concise record of hours employees work. There should be a step-by-step system in place to keep track of this.
    • Hours should be tracked with online time loggers and electronic time clocks.
  • Use a consistent system for check delivery
    • Checks can be distributed through mail, inner officer or paperless electronic deposit. Be sure to use a uniform system to distribute paychecks.
  • Open a different bank account for payroll
    • Law requires companies to have a different account for employee pay. This also makes it easier to keep track of salary payouts versus other business expenses. This is also helpful when needing to verify payment amounts.
  • Each payday, be sure to keep a good record of payroll
    • Saving records of payroll ensures monthly statements are accurate. Printed copies of payroll summaries should also be kept on file.

No matter if you do payroll manually, or outsource this service, these payroll processing tips will help you stay in the loop on this important company task.

Modern Business Associates is an HR company that focuses on payroll and HR outsourcing. We routinely work with clients on making payroll processing easier. As a Professional Payroll and HR outsource organization, our clients rely on us to help them effectively deal with these kinds of topics.