Managing payroll for your small business has its own unique challenges. The leaning tower of paperwork plus the time your commit each month is enough to overwhelm any business owner balancing a hundred of other responsibilities. Processing payroll requires dedication, planning, and the proper tools to get the job done right. Here are the best payroll practices for your small business.
The Best Payroll Practices for Your Small Business
Small businesses rarely have a dedicated payroll manager, so it is the owner’s responsibility. If you run and manage your own payroll, we applaud and salute you! We know that is not an easy task. By establishing a consistent way of tackling your small business payroll, you can really help your business grow!
Track Important Dates and Deadlines
Go ahead and pull out your 2020 calendar and jot down all relevant filing dates, paydays, bill due dates, and anything else specific to your business. Being prepared for deadlines is a vital part of an efficient payroll and business strategy.
When your business misses a deadline, you are unnecessarily incurring fees, penalties, or interest payments.
Create a Payroll Communication Plan
A payroll communication plan is a clear understanding of pay structure and schedule between you, the employer, and your employees. This will help your business avoid any future miscommunications or misunderstandings when it comes to salaries or wages. We highly suggested that you include the payroll communication plan in your onboarding package you give to new employers on their first day.
Electronic Pay Statements
If you have settled into a nice payroll groove and are paying your employees on time without a hitch, it is time to automate. Direct deposits and electronic payroll systems have been around for ages, and your business will benefit from gaining back valuable time by avoiding repetitive payroll processing. Plus your employees will love the hassle-free digital experience.
PayWow offers automated payroll processing and direct deposits if you are ready to take the leap. Say goodbye to the days of printing or writing individual checks. Your employees can access their paystubs at any time using out Employee Self-Service Portal with their mobile device.
Correctly Classifying Employees
If you want to avoid tax penalties, you must accurately classify employees. This may seem like a simple task, but it is a common mistake that can cost your business. Part-time or volunteer? Independent contractor or employee? Knowing the difference between the types of employee classifications are crucial to correctly reporting quarterly and annual forms.
Review Your Payroll Records
Schedule regular reviews or audits of your payroll records and system to make sure everything is as it should be. Take notes of the information that needs to be updated or changed. Identify what is working for your business and what is not and explore solutions that fit your needs.
Wrap Up Your Payroll With PayWow
Efficiently managing payroll for a small business requires a full-service payroll software, like PayWow. Our affordable full-service payroll and compliance solutions allow you to focus on what matters- running your small business. At PayWow we are dedicated to helping you and small business grow and achieve greatness.