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Keeping track of payroll can be challenging for even the smallest business, but with the proper guidance and practices, the task can be made routine and straightforward. There are a number of best practices for payroll management that you can follow to ensure both the satisfaction of your employees and the integrity of your payroll management.
This blog focuses on sharing some implementable, simple tips and information about paystub makers to help you with accurate and simple payroll management. Small businesses often find it daunting to achieve a clean payroll system, but with these tips, payroll management will be much simpler. Read further to unlock the excellent tips.
Make an accurate classification of your employees
Your first step toward ensuring that your payroll is generated properly will be to ensure that your employees are classified correctly. Because exempt and non-exempt employees are paid differently, any mistake in classifying their status will result in severe problems when generating payroll and then dealing with the mishap.
According to the Fair Labour Standards Act (FLSA), exempted employees are those who are not eligible for minimum wage or overtime pay. These employees are paid monthly instead of hour-based wages.
As opposed to exempt employees, non-exempt employees receive overtime pay whenever they work over 40 hours a week.
If you are misclassified, rectify it as soon as possible by contacting an employment attorney. Reclassify the status and correct the payroll irregularities as the attorney has advised.
Maintaining tax and other deadlines for payroll
You can deflect many undesirable circumstances by staying on top of deadlines and managing payroll efficiently on a year-round basis. Also, it is essential not to overlook the filing of W-2 forms. If income tax is due, one might file an extension. However, no extension is given for W-2 filing.
You will be fined $50 for each W-2 that is more than thirty days late. After thirty days, the fine is $100 per day. If you do not file your W-2s or do so more than six months late, you will be fined $260 per person. If there is evidence that your filing requirements were intentionally ignored, the fine is $530 per violation.
Choose the correct software to aid in payroll management
Generating accurate pay stubs can be tedious. To relieve administrative stress and aid in better management, companies can leverage the latest technologies and software to implement better payroll management with Pay Stub Maker.
With so much software and applications available nowadays, it is important to choose the right one that meets the requirements and is exceptionally reliable.
Stubcreator is one such application that allows companies to generate accurate payroll. The software allows a preview of the stub, which can be downloaded and sent to employees via multiple secure digital mediums. This free check stub maker with calculator will be the right choice for small businesses.
Conduct frequent payroll audits
A payroll audit, also known as a compliance audit, examines a company’s payroll and related procedures. It identifies problems related to employment law compliance, verifies tax withholding, detects human errors, and prevents payroll fraud. Therefore, payroll audits need to be conducted frequently.
Payroll is an important part of running a business, but if you follow the advice above, you can breeze through this time-consuming task with ease and accuracy.
Related Article: How to Manage Payroll More Effectively: 4 tips
FAQ's
How can I ensure accurate record-keeping for payroll?
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To ensure accurate record-keeping for payroll, it is essential to maintain detailed records of all payroll transactions, including employee hours worked, wages paid, tax withholding, and other relevant information. Using reliable payroll software or outsourcing payroll to a professional service provider can also help ensure accurate record-keeping.
What are some strategies for managing payroll costs?
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To manage payroll costs, it is important to establish clear policies and procedures for hiring, compensation, and benefits and to review and adjust these policies as needed regularly. Implementing automated time-tracking systems, offering flexible work arrangements, and outsourcing non-core payroll tasks can also help reduce costs.
How can I stay up-to-date with changing payroll laws and regulations?
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To stay up-to-date with changing payroll laws and regulations, it is crucial to review federal and state tax laws and labor regulations regularly and to seek input from legal and accounting professionals as needed. Attending industry conferences and training sessions and participating in professional organizations and networks can also help you stay informed and connected with the latest trends and best practices in payroll management.
