According to a 2022 report by Paycor, labor costs can comprise up to 70% of your total business costs. These costs include employee wages, benefits, payroll, and taxes.
Payroll processing becomes more complex as your business grows. This complexity further increases your costs:
- If you use a payroll processing firm, you might be charged additional fees every time a new employee fills out forms.
- If you handle payroll yourself, you might be unaware of the forms, procedures, and tax requirements and receive penalties for missing or incorrect information.
- Complicated payroll processing can require expensive overtime to complete.
Fortunately, you can use tools and strategies to streamline payroll for increased efficiency and reduced costs. These suggestions can help.
Implement Payroll Processing Software
Payroll processing software can save your company time and money by combining employee scheduling, time tracking, team messaging, and payroll. Processing and storing the data in one location provides on-demand access to determine your labor costs in real-time.
Connect Time Tracking to Your Payroll System
Integrating time tracking and payroll into one system strengthens payroll accuracy and data storage. You can easily make changes when needed.
Manage Payroll and Benefits from One System
Integrating employee benefits information into your payroll system helps manage your benefits program. For instance, entering employee data into one location saves time and increases accuracy. Also, connecting your worker’s compensation vendor to your payroll saves time on creating annual reports.
Automate Your Payroll Workflows
Minimize manual data entry to increase payroll efficiency and accuracy. For instance, consider automating workflows for handling the following issues:
- Employee scheduling
- Employee hours
- Overtime
- Bonuses
- Pay errors
- Missing pay
- Time-off requests
Create Payroll Checklists
Using checklists strengthens payroll efficiency and accuracy. Breaking down the processes into steps uncovers which can be eliminated and which should be added.
Develop checks and balances to elevate payroll processing efficiency and accuracy. For instance, one employee can perform the payroll duties and another can finalize and confirm the details.
Include in your checklists regular payroll audits to ensure accuracy and legal compliance. These audits save time and money on payroll processing and potential noncompliance penalties.
Implement Payment Automation
Paying employees through direct deposit rather than checks saves time and money on payroll processing. Paying your employees monthly or biweekly further increases your time and financial savings.
Do You Need to Hire Employees to Help with Payroll?
Work with FiStaff to hire experienced finance professionals to help run payroll. Learn more today why you should work with FiStaff to improve your organization and get experienced professionals on your team today!
