How to Perfect Your Payroll Process

Small businesses need to receive revenue to survive, but they also need to provide payroll to maintain a dedicated workforce. Payroll is an important business asset that needs to be done right, so here are four tips to perfect your small business payroll performance.

User the Right Software

There are many affordable software options available, such as general accounting, open source budget and advanced payroll programs. For example, TurboCash and PostBooks are popular open source accounting packages that offer basic functions, such as invoicing, crediting, accounts payable and balance sheet and income statements. GnuCash has been around since the late 90’s and has a simple format that makes it easy to invoice, schedule transactions and track suppliers. Using the right software programs may save time, improve efficiency and streamline processes.

Properly Classify Your Employees

Small business owners may not know the legal differences between full-time exempt employees and part-time contractors, but the IRS and state revenue departments will know. Classifying employees can be tricky, but small business owners should know that most states consider full-time, non-exempt employees to be regular nine-to-five workers.

These employees must be paid overtime and are not exempt from FLSA requirements. Employees who may work erratic hours or have unique responsibilities, such as sales people and supervisors, are considered to be exempt. Sometimes, it pays to hire part-time employees or consultants.

Use a Check Stub Maker

There are different options available for small businesses to generate check stubs. There are software programs and online solutions that provide plenty of templates, benefits and functions. First, both of these options are very convenient and save time.

Using an online pay stub maker means that small business employees can quickly and easily access their financial information. This saves on postage and printing expenses because employees are empowered to print out their own checks. While check stub software programs offer advanced options, an online check stub maker offers simple templates with automatic calculations and user-friendly options.

Set Up Direct Deposits

As your business grows, it may make sense to eventually set up direct deposits. This reduces waste and unnecessary headaches. Setting up direct salary payments ensures that employees are paid the right amounts on time. Almost all banks allow small businesses to set up regular direct deposits for employees. Advanced accounting software is expensive, but it will allow business owners to automatically submit the information to the bank. However, a simple system that communicates basic financial data is sufficient for most banks.

In closing, be sure to properly deduct taxes from employees’ wages because the IRS holds businesses accountable for late or inaccurate payments.

Author: Anica Oaks is a professional content and copywriter who graduated from the University of San Francisco. She loves dogs, the ocean, and anything outdoor-related. She was raised in a big family, so she’s used to putting things to a vote. Also, cartwheels are her specialty. You can connect with Anica here. Anica writes on behalf of Check Stub Maker, which offers an online check stub maker for business professionals.