Payroll: The Do’s And The Don’ts
When it comes to payrolls, there are several things that should be kept in mind. Today, we’re going to take a look at some of the biggest do’s and don’ts that new business owners might not be aware of.
DO. Keep track of your timeline! You need to know how often your employees are being paid. Weekly pay means that this will be 52 times a year. Bi weekly means that they’ll get 26 paychecks. Monthly payments mean that they’ll get paid twelve times a year. You need to keep this in mind so you can consider the cost of printing checks and paying direct deposit fees.
DON’T. The last thing that you want to do is make a payroll mistake, but this is especially true when it comes to miscalculating your taxes. If you do this, then you’re going to have to face some serious legal repercussions. You also want to be leery of underpaying your employees. Even underpaying them by a few cents can be a legal issue.
DO. Invest in the right software, so you can cut time costs for the payroll process. This will help you reduce the risk of mistakes and streamline the process. It’s especially useful for companies that have more than three employees, as it helps prevent any confusion from taking place.
DON’T. Trusting your software too much can be a failing point. Because glitches do occur, you want to have someone on hand to look over the software handling your payroll at last every other week, to ensure that nothing has been altered and there are no errors occurring. The human eye can spot things that a computer might not be able to pick up on. Tackle payroll from both angles.
DO. The most cost effective way of paying your employees is through direct deposit. Not only is it cheaper, but it’s also more reliable, results in less mistakes, and is more popular with your employees. By giving them the chance to control where their money goes, and making it easier for them to get a hold of their checks, you’ll be a much more popular employer.
DON’T. This is the most important tip on the list: make sure that you always pay your employees on time. Not only can a late payment result in a legal issue, it might also result in employees turning in their notice or even just quitting without notice. You’re going to want to make sure that the payment is put out on time every single week to keep things running smoothly.
Handling the payroll for your company can be stressful, but so long as you keep these do’s and don’ts in mind, you should be able to get through the first few weeks of being in charge of your employees paychecks with little trouble. Keep track of the funds, keep track of the dates, and keep track of taxes – and you should be just fine.
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