Even though payroll is one of the most essential services a company provides to its employees, it is often one of the most complex. Your payroll department may feel like it is constantly overwhelmed with processing. Using technology to streamline payroll operations can make a significant improvement. Here are some tips to refine how your team handles payroll:
1. Determine employee classifications and how workers will be paid
It's important to assess your employee classifications regularly because regulations may change. Whether you employ full- or part-time workers or independent contractors, they need to be properly classified to avoid compliance issues and fines. Unlike employees, you do not need to withhold taxes for contractors. If you're unsure about how to classify workers, an accountant or attorney can reduce confusion.
Proper classifications help you determine how to compensate employees, whether through salaries or hourly wages. If employees work different hours each pay period, you need to have a solution that accounts for these variations. Hourly data needs to be accurate so you pay your employees the right amount.
2. Choose a stronger software platform
Automation can significantly improve payroll operations because it reduces the room for manual errors and saves your payroll department time. If your team has struggled with payroll for years, it may be time to look at how to streamline the process. If errors are a regular occurrence, software can create a more uniform procedure.
A quality software platform has employee-facing features that allow your staff to manage their personal benefits. Without a user-friendly system, employees are less likely to enter their hours in a timely fashion. Having an integrated system that allows workers to have one login to enter hours, view pay stubs, request time off and check other benefits makes it much easier for employees to access their information. In particular, requesting vacation time is a hassle for many employees, and after they request it, it may be difficult for managers to keep track of the time-off schedule. The right software solution remedies this issue.
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