Payroll management require careful strategy, teamwork and execution. It’s important for all business to follow common payroll best practices in order to save time and money. Payroll requires proper planning and tools to get the job done so your employees can receive their pay cheques on time and error-free. To grow your team every business need a proper payroll process for each payroll function. If you are looking for payroll best practices and tips for your team, then consider these helpful steps.
1. Prepare HRMS/ Payroll SOPs manual for your team and Company
Invest time in making the SOP’s manual if you don’t already have one for your Company. It will cover everything like Employee Recruitment Policy, Employee on boarding process, Attendance Policy, Leave Policy, Travel Policy, Reimbursement Policy etc. This will save your time in answering a million questions related to salary & pay period. Encourage your employees to follow the each process & policy.
A good HR and Payroll Policy help in avoiding unnecessary/ repetitive work wherever possible. This is the best solution to grow your team. Once they understand all process and policies it will help in maintaining the different payroll function.
2. Classify employees the right way
A common mistake for many payroll departments and businesses is employees being incorrectly classified or not categorised at all. Different tax implication can be enforced which is depend on the company employment status of a staff member. Payroll best practices include the checking of all employee categories and updated wherever required.
Managing a payroll function is a time consuming and it’s required the person who can take responsibility. The memory of person should be sharp and the person should be able to remember the different key dates. Key dates can be weekly, monthly or yearly. The best payroll practice always provides clearly defined system of reminders to ensure that no key dates missed by organization.
4. Forms and structure
Missing information of employees or incorrect data is the most frequent errors and issues we experienced in many payroll functions. This is normally happens in case of new start-ups. A good practice payroll functions save your time and remover the errors by implementing a detailed system of payroll. The company provides various form like Company master data, tax declaration etc. Every new business completes these forms electronically and the information is automatically captured in the payroll system. This practice help in preparing the correct information at each level.
5. Archiving and records
Payroll data is sensitive and each data is required to be stored in safe set of archives and records. Many companies are still maintaining the employee data in manual form and sometimes company not able to maintain the records properly. In cloud based payroll software all data related to employee can be maintain electronically and it is always available as an when require so it’s always best to adopt the 100% automation to maintain the employees related data.
6. A close eye on payroll best practices
The payroll service vendors provide the payroll services to different nature of business companies. The team of service provider doing work in a good payroll function every day and get the expertise in handling the payroll function of different companies sp it can be hard to find out any inefficiencies issues. The good payroll service provider always tries to find out the small issued by auditing the work of their team whether internally or from outside auditor. It will help in to grow your employees.
7. Training and development
No payroll team would be following the best practice if proper training not provided to them for their development. Best payroll service provider is always tried to identify gaps in their team skill sets and then send their employees for training courses or workshops to get the latest updates which will help to entire team. Investment in the skills and experience of your payroll team is essential for success.
The payroll function is crucial for each business and maintaining best payroll practice is mandatory for overall success. To success and maintain the best practice in your team, outsource your payroll function to a payroll outsourcing services professional. This will ensures about absolute compliance, accuracy and peace of mind for your growing business.