The Importance Of Getting Payroll Right
April 18, 2018
Payroll is perhaps one of the most important elements of a successful business, as precious few companies exist without the help of a team of employees, and when they are not paid on time or their salary is not accurate, you stand a good chance of them either leaving their employ or threatening to take legal action against you.
Legal action is a very real threat from disgruntled employees, so as their employer, you need to do whatever it takes to ensure that they always receive their pay in a timely manner, and that it is an accurate reflection of the work they have undertaken.
Payroll can also have a significant effect upon staff morale and even the financial stability of a business, so getting it right is incredibly important.
How payroll can affect employee morale:
Employees of smaller businesses tend to be more aware of the company’s financial stability and will be quick to react if they get a sense that they are not being paid fairly, or that their timely pay is not a priority for their employer. Inaccurate, late or unfair pay will cause employees either to walk away from their role, underperform, or even to take legal action against you.
The importance of compensating your employees:
Being able to appreciate their net worth within a company, is hugely significant to employees, and their total compensation is built into payroll, such as their salary, benefits and bonuses. There are usually financial rewards for those employees who have proven their worth in annual performance assessments and awarding them with benefits tells them that you value them as people and as members of your workforce. Health and life insurance, and pension benefits all play their part in encouraging employees to feel worthwhile and valued, and they are an important element of payroll.
Consider outsourcing payroll:
Getting payroll right can be a time-consuming task for any business owner, and if employees are not paid the correct amount, withholdings are inaccurate or state and federal tax deposits are not made in a timely manner, then these errors will quickly catch up with you. The single most effective way of ensuring that payroll is completed accurately, is to outsource the task to a company who specialize in providing payroll solutions. Not only do you ensure that your employees remain content, but you will have more spare time to work on other equally important aspects of running a business.
Get payroll right and your taxes will be lower:
If payroll is not being undertaken accurately, then you face the prospect of paying higher taxes than you deserve. Employees need to complete W-4 withholding forms correctly and business owners need to ensure that they are withholding the rightful amount of FICA taxes every year from payroll; FICA percentages may vary based upon changes to legislation.
Get payroll wrong, and it won’t be long before you begin to face an unhappy workforce, potentially higher taxes and the unwelcome prospect of legal action. Get advice and guidance from a payroll professional and take the worry, stress and hassle out of payroll.