Seventy-eight percent of US workers live paycheck to paycheck.
Getting paid the correct amount and getting it on time is essential. That’s why employers need to use accurate payroll practices. One incorrect payment can set an at-risk employee back a month (or more).
Keep reading to find easy payroll tips to make payday a cinch.
Determine Whether Your Employees Should Be Paid a Salary or Hourly Wage
Paying your staff a salaried wage makes payroll a much easier process to manage. When they’re paid a salary, you (and they) know exactly how much they’ll make every month. You won’t have to do many calculations.
Hourly wages might make more sense for your business model, though. In that case, you need a way for your employees to keep track of their hours. There are several ways to approach this.
If you have a small business, old-fashioned pen and paper timesheets might make the most sense. They’re free and easy to use. You’ll only need to make sure your employees are accurately recording their hours.
Larger businesses might prefer an electronic option. There’s certainly no shortage of time clocks or computer systems available. Choose one that both you and your employees are comfortable using.
Determine How Often You’ll Pay Your Staff
Business owners have the freedom to choose how often they’ll cut paychecks.
Most employers use a bi-weekly model, paying their employees every two weeks. Others prefer making one payment at the end of the month. Some even pay at the end of every week.
You’ll need to determine what works best for your business
Determine How You’ll Pay Your Staff
Now you know how much and how often you’ll pay your employees. Your next step is deciding how you’ll issue them their money.
Electric Funds Transfers are becoming a popular method of payment. EFTs will deposit your employee’s earnings straight into their bank account. This is the easiest way to pay your staff, but not everyone is comfortable with online banking.
A paper paycheck is an old-fashioned way of doing things. Older employees especially may find it more private than EFTs.
You’ll need to issue real check stubs to your staff, too. Stubs provide proof of income and show pertinent information like payroll deductions.
Use the Right Software
Payroll can be confusing and time-consuming if you haven’t taken any training. If you’re still trying to process payroll with a pen and paper, it may be time to look at software to help.
There are plenty of online platforms that can help with processing, tax compliance, and PTO management.
Forty percent of small businesses incur penalties from the IRS for incorrect filing. This will be less likely to happen if you use the right program.
This software isn’t free, but it’ll save you on time and energy in the long-run.
Use Easy Payroll Tips for More Peace of Mind
Running your own business isn’t an easy task. Even when you’re not at work, your mind is running rampant with tasks and sales goals. Worrying about how to pay your employees shouldn’t even be on your radar.
Our easy payroll tips will make your upcoming paydays a breeze.
Check out our other articles for more tips for business owners.
