Payroll Doesn’t Have to Be a Chore

Business owners may find that some of the more routine tasks they are required to undertake are also some of the more tedious, and payroll and wage administration can be one of those selfsame tasks. Nonetheless, the administration of payroll, even if the business is a one person operation, is essential from both a regulatory and legal perspective. It also makes sense to streamline payroll from an efficiency point of view.

Payroll and tax forms

Contractor pay solutions can take the difficulties out of payroll for business owners. By outsourcing payroll administration, a business can remove the difficulties for itself of tracking different wage systems and associated costs. Using contractor pay solutions can make particular sense in respect of a business that is reliant on a lot of temporary staff or contract workers. Outsourcing might also be something a business considers as it grows and finds increasing amounts of time and resources being spent on what are not core competencies, such as production, service provision, or sales and marketing. An outsourced payroll service provider will have the level of experience and scale of resources to administer a system that may have become too burdensome to retain in-house.

In terms of properly organizing a payroll system, there are some basic tips that a business can follow to ensure efficiency:

  • Be organized: a payroll system is one of constantly shifting parts, from due-by dates in respect of payroll tax deposits to year-end responsibilities. Given the nature of a payroll system, it makes sense to have a to-do list in the form of a calendar.
  • Simplification: any payroll system has to take into account other aspects of a business, from attendance and sick leave to vacation days and expenses. If filing is to be made as streamlined as possible, then the aforementioned factors need to be kept as simple as possible. This will be of considerable benefit to whoever is responsible for processing payroll, whether they are in-house or outsourced.
  • Technology is key: if a payroll system is to be efficient, timeliness and accuracy are both essential. The use of payroll software and other technologies can reduce the likelihood of such issues as underpayment or delayed payment from occurring as well as assisting payroll processors in day-to-day tasks.
  • Keeping one eye on the future: new information is published each year affecting the processing of payrolls, and this information tends to be released by the IRS by early December of each year. It includes information related to changes to tax withholding rules, newly introduced benefits and deduction amounts as well as new W forms for reporting taxes. It benefits any business to familiarize itself with these changes early on so they will not encounter unnecessary difficulties in the year ahead.

A properly organized payroll system can take the chore out of the task of wage administration and free up the business owner to focus properly on what it takes to make their business great, free from worries about whether wages and associated financial issues are being dealt with properly.

Photo credit: 401kcalculator.org

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