10 Handy Payroll Tips
January 8, 2016
Whether you are running a 5 person business, or a large corporation with 100’s of employees, payroll is a priority. Staff must be paid on time, every time, and be paid correctly. It is the responsibility of every employer to ensure that they are.
Some processes can be daunting, but here are 10 tips that should help make your payroll plain sailing!
- Beware of complex payroll calculations including different fringe benefit taxation and maternity leave trust fund contribution categories, end-of-year procedures and government budget updates. Failure to comply with laws and regulations can have serious repercussions.
- Automate tax and NI calculation. Find out if your payroll software automatically takes care of taxes for you. This can ensure the payroll process is completed in a timely and correct matter. Out of sight, out of mind (and in compliance)!
- When it’s time to give raises, consider providing them in the form of tax-free fringe benefits such as health insurance, a mobile phone or a retirement plan.
- Before taking on new staff, particularly foreigners (non-EU nationals), ensure that all permits are in order. It is the legal responsibility of every employer to ensure that all employees are legally allowed to work for the business.
- Properly classify your workers. It may not be legal to for example classify a worker as an independent contractor. Each classification may have a direct effect on your payroll process.
- Clearly identify your payroll schedules. You may choose to pay your employees monthly, 4-weekly, fortnightly or weekly.
- When investing in software, select the best platform for your business. If you are experiencing growth, or you are always on the go try selecting an option that’s hosted in the cloud. This will make it easier to access all of your payroll information in one place, whenever you need it.
- Always think about automating as many payroll and leave processes as possible, leaving you to work on the more important matters of your job.
- Get good support for your payroll software. If you use a software or online package, and a technical glitch is preventing staff from being paid, you’ll want help at hand to save stress and liability. Always check that online or telephone support is part of the deal and easily available. Research the provider’s reputation. Ask other similar businesses what they use.
- Consider having an integrated leave management system that pushes all leave data into your payroll. This makes things so much easier especially with variables such as vacation leave, sick leave, bereavement leave, maternity leave and more!
You can count on Shireburn Software to guide you through a number of payroll options to suit your particular business requirements, from a cloud solution accessible from anywhere, to an on site option.
Get in touch with us for a proposal and demonstration.