Maintaining a well-managed and timely payroll not only leaves the employees happy, but keeps the employers with peace of mind. Employees expect to receive their salary on time and to have a good answer regarding their benefits and tax compliance reports. To ensure a smooth relationship between employer and employee, a good payroll management system must be in place. This will reduce brushing of shoulders between the two. In this article, find out how to manage the employee payroll.
What is a payroll?
A payroll is a system where all financial information regarding the employees of a company are recorded. This includes their salary information, taxation obligations, other deductions and benefits that an employee gets as a result of their service. A payroll system allows an employer to know how much s/he owes employees. It also gives them a total value of taxes due from the employees to the state.
How to manage a payroll
Managing a payroll well ensures that employees are paid in time every time and their tax dues are submitted to relevant authorities in a timely manner. Therefore, it is one of the vital tools of running a successful business entity as a result of employee satisfaction. Some tips can help a business to manage a payroll successfully. i) It is advisable to invest in a good accounting payroll system, for example, sage payroll. Such software eases your work as it can be tailor-made to tabulate the payroll totals automatically. ii) Make sure that you prepare an early payment plan for employees. This ensures that employees receive their pay cheques on time. iii) Withhold all due taxes and deductions from the employees. This should then be paid to the government as soon as possible to avoid fines being implicated on the company. iv) Make arrangements to quarterly file all summaries of the total deductions and deposits from pay cheques. v) Increase the number of reliable people who can manage the payroll. Leaving the job to only one expert would jeopardise payroll management, if that person left or was unavailable. An employer can have two or more people trained on payroll management. vi) Payroll management need not be done in-house. If the business lacks the expertise of payroll management, outsourcing payroll services can be used. Outsourcing companies manage the payroll on behalf of the company. Outsourcing payroll services has been shown to largely cut on company costs and any delay worries.