The payroll process is an important part of business functioning. The method used to pay employees within a company must be consistent and simple to implement. One of the most important parts of processing payroll is that it must be accurate. The last thing you want as an employer is having to deal with disgruntled employees following inaccurate salary or wage payments.
There are numerous ways of processing payroll, such as internal management, using payroll software or even relying on external expertise.
When comparing the most accurate ways of processing payroll, you need to first take into account vital first steps that pave the way for smooth functioning.
Select a payroll schedule- Depending on business operations, you should select a payroll schedule that is going to work well with the ways in which you run the business. Decide whether a weekly, fortnightly or monthly schedule will work best. It should not result in negative cash flow for the business and should ideally be simple to administer. If you don’t have the capacity to handle bi-weekly payments, then a monthly schedule may be better.
Keep accurate records – Accurate information for payroll is imperative. Records such as hours worked, overtime, base salary amount, bank account details and employee dates of birth should be kept safely. The information should also be easily accessible for payroll staff and relevant executive management, should any employee come into question. Payroll administration should also account for leave days, sick days and commission. All deductions should also be calculated, to ensure compliance with the law, while also keeping employees’ best interests prioritised.
All information must be presented clearly on a payslip.
Transfer of funds to employees should be seamless.
Nowadays using payroll software is a simple way of ensuring that this process is simplified. As long as accurate employee details are captured, there is no reason for inaccuracies.
Relying on contracted payroll companies may also work, as long as clear lines of communication are maintained with personnel.
Finding the most accurate ways of processing payroll is a vital step in making sure that this process is as efficient as possible, thus saving time and money.
