Why is it processing payroll always feels like a timesuck? You're always rushing to dot your "I"s and cross your "T"s on one of the most important parts of your business (i.e. paying the people who do all the work!). Small business owners are reported to spend as much as 21 days per year on payroll processing alone. You've got bigger fish to fry! Lift HCM has been in the payroll game for over half a century. Suffice it to say, we learned a few tips and tricks along the way.
Let's look at a few ways to streamline your operations for more efficient payroll processing. Implement what you've learned and you'll have more time to lead your troops in no time.
1. Nerd Out About Your Calendar
First and foremost, we highly recommend using a reliable calendar program to stay organized. We're talkin' your Google Calendar, your Outlook, your iCal; the usual suspects. Using a calendar is crucial for planning and setting important reminders for upcoming paydays and other payouts, such as bonuses or commissions. In doing so, you establish a solid framework for the operational cadence of processing payroll while gaining a more comprehensive view of your annual pay schedule.
Reminders play a vital role here. Any program that allows you to set reminders is worth investing some time upfront. This means you'll need to dedicate some initial time to set it up, but it will pay off in the long run when you no longer have to scramble to meet missed deadlines.
2. (Re)think Your Pay Schedule
To streamline payroll processing and claw back some valuable time, optimizing your pay schedule can make a world of difference. This means aligning everyone's payment dates and selecting the pay frequency that best suits your organization.
Avoiding multiple pay schedules is highly recommended, as they tend to cause complications that worsen over time. While more frequent pay periods are generally favored by employees, it's running payroll more frequently can put some serious strain on your administrators.
Consider the costs involved in running payroll, the impact your pay schedule will have on your workforce, and the future needs of your company to ensure you're on the right path. Once you are, you'll find that finding the optimal balance between pay frequency and cost plays an instrumental role in streamlining your payroll.
Pro Tip!
If you find processing payroll is pulling you away from other responsibilities involved in running your business. Delegate what you can to your administrative staff. Your shortened window of availability may have you in a rush and more prone to making costly mistakes (granted, Todd from Customer Support has never been the same since you accidentally added a zero).
3. Invest in Good Time Entry Tools
Once you've dialed in your scheduling and pay frequency, it's time to implement a timekeeping app (...but did you see what we did there?). Not only is timecard software great for maintaining accurate records of each employee's time, they also often integrate with other software platforms you may already use to for payroll, benefits, training, and other workforce management responsibilities.
There are different types of timecard and tracking apps based on the size of your business. If you're a startup or small business, you might find these free timekeeping apps helpful.
Key Takeaways for Payroll Administrators
We hope this left you with some food for thought on putting more pep into your payroll processing. While everything we discussed might sound helpful, we understand that each of you is unique. Not everyone is a miracle worker when it comes to learning new programs. We can't all be the cybersecurity expert from a dime-a-dozen procedural crime drama (ENHANCE!!!).
If you still find yourself struggling after having implemented these best practices, then it may be time to consider the services of a human capital management provider to manage (or co-manage) your payroll processing.
If you're thinking about offloading your payroll onto a third-party provider and are already familiar with the nuts and bolts of managed payroll services or are already vetting your options, then you're next step may well be determining which candidates are scaled for your success.
