Processing payroll can take up a lot of your precious time. You have to calculate the hours employees worked, the total wages, and the payroll taxes you need to withhold and contribute.
Payroll processing is a necessity, but it pulls you away from working on your business. Luckily, there are things you can do to reduce the amount of time you spend on processing payroll.
5 ways to save time processing payroll
Get back to running your business. Follow these five tips to save time processing payroll. Also, check out the infographic below.
1. Get correct employee information
It is important that all employee information is correct. If any information is incorrect, you have to take the time to get the correct information, and you will likely have to rerun payroll for any employees who had incorrect information.
Have employees double check their personal information. They should especially check information that might affect running payroll, such as their withholding allowances, address, and Social Security number.
Also, ask employees to update their information if anything changes, such as a change of address.
2. Make a list of tasks
To keep your payroll processing procedures organized, figure out what tasks you need to do to run accurate payroll. Create a list of all the tasks. The list will help you remember to do everything. When you process payroll correctly the first time, you don’t have to go back later to complete forgotten tasks.
3. Use direct deposit
Using direct deposit can save you both time and money.
One of the benefits of direct deposit is not having to pay for check stock, ink, or printer maintenance to print checks for your employees. You manage direct deposit electronically, saving you money.
Paying employees with direct deposit is also faster than paying employees with checks. You don’t have to take time printing or handwriting checks, and then distributing them. You do direct deposit electronically, so you don’t need to print anything, and employees automatically receive their earnings.
Make sure you check the direct deposit requirements in your state. In many states, employees can refuse direct deposit.
4. Avoid manual calculations
Processing payroll by hand can take a lot of time. Manual calculations take a long time because payroll and deductions are different for each employee. Manual calculations have an increased chance of resulting in errors, meaning you lose time while making corrections.
Doing payroll electronically can reduce the time it takes you to run payroll. Online payroll software will do all calculations for you. You simply need to enter employee hours, and the software will do the rest. Payroll software also guarantees accuracy, meaning you don’t have to worry about errors.
5. Purchase software for taxes
Payroll taxes can take up a large amount of the time it takes to process payroll. You have to calculate how much to withhold from employee paychecks, fill out and file tax forms, and pay the taxes. And if you have to deal with federal, state, and local taxes, handling taxes will take even longer.
Use a full-service payroll solution that will deal with taxes for you. Patriot’s Full Service Payroll software will calculate and withhold taxes. The software provider will file and remit the taxes to the appropriate agencies.
If you no longer have to worry about taxes, you will save a lot of time on processing payroll.
Infographic: Save Time Processing Payroll
The best way to save time on payroll is by purchasing payroll software. Patriot’s online payroll is accurate and easy to use. Payroll processing is a fast, three-step process. And, Patriot offers payroll tax management and free direct deposit.
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For more payroll training, visit Patriot Software today!