As we enter a New Year, we should not only make personal resolutions but business ones too. Read on to discover some tips on improving your approach to payroll in 2019.
Make sure you properly categorise your employees – It may sound obvious, but you need to make sure that all of your workers are categorised as either hourly or salary. This makes everything much easier to manage, especially when it comes to overtime purposes and determining whether someone is non-exempt or exempt.
Have a transparent payroll policy – It is crucial to have a transparent payroll policy in place at your business otherwise problems can easily arise because your employees do not understand your payroll system. A lot of issues, including employee misclassifications and underpaid taxes, will be corrected if your payroll system is transparent. So, make sure your policy features information on everything from business procedures for handling payroll errors to how salaries are determined.
Have a keen eye for detail – One of the biggest mistakes people make when it comes to payroll is being lax in terms of details. This may not seem like a big deal, but it is only going to lead to issues later down the line. Therefore, you need to make sure that all of your employees’ details are up to date and accurate, including everything from their dates of birth to start dates.
Have a financial plan in place – Reacting to things once they have happened is never a good formula for anything in business. You need to be prepared. So, you should keep on top of all payments, send invoices out as quickly as possible, set up a good system for credit control, and chase late payments as soon as the due date passes otherwise you could suffer a disruption to your cash flow.
Hire a chartered accountant – Last but not least, one of the best ways to ensure that your payroll is handled properly and efficiently is to use the services of a quality accountant. You can also look into specialist payroll service providers. Not only will this free up time so you can focus on the core of your business and make more money, but you can also have the peace of mind that everything complies with the current and relevant legislation. From the administration of incentive schemes and completion of statutory forms to the administration of PAYE and customised payslips, a chartered accountant will be able to take care of it all.
If you follow the top tips that have been mentioned in this post, you can ensure that your business stays on top of your payroll effectively. From having a good financial plan to perfecting your eye for detail, follow the tips above for payroll success.
