10 Guaranteed Ways to Stop Spending So Much Time on Payroll

Payroll can be one of the most time-consuming aspects of running a business. Every pay Payroll can be one of the most time-consuming aspects of running a business. Every pay period requires you to process salaries and hand out paystubs to your employees. These records must be detailed to show the whole picture of gross earnings and deductions. If there are any errors in checkstubs, it can lead to employee grievances and cost your business penalties during tax audits.

If you are a small business owner, having that amount of time to work with payroll can be hard to achieve. You have to focus your energies on activities to create the business. So, is there any way to reduce payroll time without bringing in errors and inaccuracies? Let us break this down, from employing a free check stub maker to HR strategies you can implement.

Simple Strategies to Cut Payroll Processing Time

We have collected some practical ideas that can make a sizeable difference for business owners. Once you start incorporating these ideas, you will find that payroll cycles don’t seem so daunting anymore.

1. Revaluate your payment methods

If you still use checks, it might be time for a change. Writing out and distributing checks can take valuable time and slow down payroll management. Many businesses now use direct deposit. You can also consider mobile wallets.

Before making an overhaul, confirm the payment laws in your state. For instance, California and New York require you to get written permission from employees to make their payments by bank deposit. Kansas and Indiana need you to ask your staff to accept direct payment. But you must offer an alternative for those without a bank account.

2. Use an online paystub generator

Digitizing can save tons of time and also limit the scope of error. You can consider using a paystub creator like StubCheck.com instead of relying on paper documents. We use a straightforward process that involves only three steps. First, you have to enter the necessary personal and payment information. The background calculator refers to the tax norms in your state and computes all the essential fields for you. Once you preview and confirm the generated paystub – you are done! Printing or sharing the payslips with your staff via e-mail is convenient. Going the automated way can save time, paper, and storage needs.

3. Use a monthly or bi-weekly payroll frequency

Weekly payroll can be time-consuming and prone to mistakes. A daily cycle is even worse in this regard (although it is essential for some businesses). Consider changing your frequency to bi-weekly or semi-monthly to reduce the number of runs required. You can save yourself a lot of stress and time this way.

4. Build a payroll calendar in advance

Besides setting the payroll frequency, business owners must work out other scheduling aspects. For example, when do you have holidays, and how will they affect payroll? What are your timeframes for addressing employee queries about their salaries or bonuses? Have you set up alarms to disburse paychecks or make direct deposits to your workforce on time? Creating a fleshed-out calendar before the new financial year commences can be a fabulous way to avoid wasted time.

5. Link attendance timecards to payroll

If your employees enter timesheets that you transfer to your payroll application, you have your work cut out. Essentially, you are entering the details twice – an expensive proposition for any business. It is better to link your attendance timecards to payroll. Your staff can fill out the required information on a self-service portal. You will only need to review the data and approve the hours.

6. Invest in automation software

Automating multiple payroll processes can reap substantial time and cost benefits. You can look for a full-service solution that also works on taxes, time-keeping, and attendance. Such software can tie in with any existing payroll software you may already have. Automation reduces the scope for errors as well, further benefitting your business.

7. Outsource payroll processing

Many entrepreneurs decide to outsource payroll requirements to a service provider. You can pick a payroll company that specializes in the kind of business you run. You may be able to find the perfect plan that suits the size of your establishment. This solution removes a huge stressor from your work life, keeping you free to focus on more creative aspects of the business. Look for a trusted company with established protocols for addressing grievances, rectifying errors, etc. You can also arrive at a mutually compatible payment plan depending on the number of payroll runs you need.

8.  Update employee records periodically

When essential employee details change, they should reflect on your payroll records. Outdated or inaccurate information will lead to erroneous paystubs and slow down everything. A good way is to ask your employees to update you when they move to a new address. Likewise, they must also let you know if their filing status changes or if they get married. Verifying Form W-4 is a quick method to keep records updated. It will also cover fields like Social Security Number.

9. Keep payroll records organized

Storing your paystubs is an integral part of running a business. You should keep checkstubs for at least three years. Employers often file tax-related records for four years. You can keep these records organized in cabinets and folders for quick access. Digital solutions are easier to manage since they don’t take up office space and offer quick access. A paystub generator free may tie in with cloud storage and indexed access. When you have all payroll-related documentation neatly organized, you save time filing taxes and addressing grievances.

10. Consider unlimited paid time off (PTO)

Unlimited PTO may sound wacky, but many businesses are now open to this policy. The premise is that employees don’t get assigned a fixed number of paid days off at the beginning of the year. An advantage vis-a-vis payroll is that you get tax breaks and reduce the codes involved in routine payroll management. The policy can also build employee trust and be an enticing perk during recruitment. You can give it a shot if you are confident your staff won’t abuse the system.

Benefits of Streamlining Payroll Processing

One of the main advantages of digitally handling your payroll is savings. You will not have to dole out a hefty salary to employees in the payroll team. Hiring more workers entails additional income heads like overtime, healthcare, etc. Trusting a software application can erase this expense head. You will still witness cost benefits if you outsource payroll processing to a third-party agency.

Another huge plus of using an automated payroll service pertains to taxes. Business owners frequently struggle to keep up with the updated tax codes in their states of operation. The US has changed tax laws thousands of times in the past decade. Not using the latest figures will lead to inaccuracies. StubCheck.com always keeps the calculator updated with the latest numbers so that you needn’t fret about potential errors.

It can be easy to overlook the costs of payroll in the madness of running a business. But, over time, it can deplete your resources unless you actively work on streamlining things. More companies now opt to go the digital route to reduce payroll processing time. The use of a free paystub maker has also become widespread.

Making payroll changes can be a paradigm shift for your business. We advise you to take your time before arriving at HR decisions and have plans to make the changes effective across your organization.