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5 Tips for Efficient Payroll Management

10/23/2017

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Let’s face it: Efficient payroll management should be a top priority for every employer—large or small. Whether a company handles payroll in-house or via outsourcing, the pressures involved with payroll processing, payroll tax filings, tracking paid time off, and completing and distributing W-2s each year can be overwhelming. Add in paid holidays, insurance, and tax-related tasks like social security tax, Medicare tax, unemployment tax (state and federal), and the urgency of being as efficient as possible with payroll management becomes even more important to avoid hefty penalties from the IRS.

LBMC Employment Partners is dedicated to helping employers maintain the highest of standards with payroll management. These five tips are essential for employers to consider when it comes to efficient payroll management.

  1. Be organized.  Proper payroll organization begins with effective systems and processes for managing tasks, responsibilities, and deadlines. This can include software tools for managing various types of information, detailed filing systems—electronic and physical, avoiding clutter, and disposing of out-of-date items.
  2. Know your process, and document it. It’s a simple concept that can save you energy and time. Having a solid awareness of your payroll process is critical, and a clear documentation of your process is greatly important in case you are absent and someone else must pick up the process. Documenting your process is also helpful in the event of an audit.
  3. Establish discipline, manage expectations, and maintain accountability. While every company dreams of error-free and effective payroll management, the establishment of strict deadlines for employee timesheets is important for efficiency and cost control. In addition, organizations should carefully manage expectations about how payroll works. Make sure these expectations are clearly communicated through your employee handbook. Once payroll rules and guidelines are in place and properly communicated, it’s important for employers to make sure management and staff are accountable to the process. 
  4. Pay attention to the details. With payroll, the smallest details can make the biggest difference. From proper classification of employees to tax regulations and exceptions to knowing and understanding labor laws, employers can’t afford to miss important details that keep you in compliance and penalty-free. Failing to pay close attention to every detail can greatly impact your staff and payroll management.
  5. Be open to change. No two businesses are the same, and payroll is not a one-size-fits-all endeavor. Every employer should consider their organizational goals, company culture, and best industry practices when deciding how best to approach and manage payroll. The right choices can positively influence whether payroll is completed on time and with accuracy, efficiency, and effectiveness.

If outsourcing your payroll management is your mission, make sure you are working with the right payroll provider who can help you focus on running and expanding your business. Offering a full menu of payroll processing services, LBMC Employment Partners can help navigate the complexities of payroll processing in a timely manner. To learn how LBMC Employment Partners can assist you with customized payroll solutions, contact us today!

Posted in: Payroll, HRO, PEO
5 Tips for Efficient Payroll Management

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