Your business has gotten off the ground and you've finally been able to hire some paid employees, but before they can begin working you need to set up a payroll system that will work for your needs as well as theirs. When it comes to payroll, there are some simple things you need to remember in order to create an easy-to-process system that will keep everyone happy while streamlining your business. Here are some simple tips for setting up your payroll system that should get you started on the right track.
Think about how you plan to pay workers. Will it be hourly based or salary? If hourly, consider the effects of possible overtime pay on your bottom line. You will also want to determine whether you plan to pay people weekly, bi-weekly, or monthly. Make sure that you decide on a clear week-ending day as well. Week-ending days can be Fridays or Saturdays if you have people working on the weekends. Setting these clear parameters are the building blocks for any payroll system.
When it comes to processing your company payroll, look for software that's streamlined and easy to use. Most new versions of payroll software include automated updates for state and federal taxes as well as simplified tracking so you can keep up with paid time off including sick days and vacation days. Entering payroll should be a simple process that involves quick data entry. The software should be able to do most of the intricate legwork for you like calculating pay totals and factoring in health insurance costs and taxes. Once you set up each employees' personal wages and tax status, it should just be a matter of tallying up their hours each week. A good software program can also run monthly and annual reports to give you a snapshot of how much money you're spending on pay for your employees.
Consider Direct Deposit
While many companies offer direct deposit for paychecks, some smaller companies might not provide that option. Direct deposit is the easiest, quickest way to pay your employees and many people consider it an added perk. Direct deposit will also ensure that there are no issues with people losing checks or worrying about when they will be paid. It also helps you, since you'll be able to view the deposits made via payroll on your company bank statements, giving you another way to view the output of money spent on payroll. While there are many other nuances involved in the payroll process, these tips are a good way to build a foundation to providing workers with a streamlined, reliable payroll process.
For more help, contact a company like Blueback Accounting.