While the majority of employees count down the days until their next payday, this isn’t quite the case for HR professionals unfortunately. For them the very thought of payday approaching brings about quite different emotions and what can be a very lengthy and frustrating process fills them with dread. In fact, 25% of payroll leaders spend more than 50% of their time on day-to-day payroll activities, so there’s no wonder it’s not exactly their favourite task.
Managing the payroll doesn’t have to be such a nightmare, however, and a lot of time and money could be saved if a few changes are made. Namely have put together some of their top tips for making your Payroll process more efficient. Here’s what they recommend:
How can you save time on payroll?
1) Switch to salaried positions –
Employees with fixed pay save a lot of time calculating hours worked, overtime and time off.
2) Give employees unlimited holiday –
Not only will it make employees happy, but giving them unlimited PTO will reduce the number of pay-codes you have to deal with.
3) Make direct debit compulsory –
88% of employees are paid by direct debit, which payroll professionals feel helps them to meet their payroll needs.
4) Offer prepaid FSA cards –
With and FSA card, employees are more likely to spend pre-tax dollars which lowers their taxable income – meaning you’ll spend less on Social Security payments.
5) Automate tax filings –
1 in 5 people handling payroll taxes internally report spending more than 6 hours a month on the task. 27% of small businesses report spending more than $10,000 on the admin of federal tax.
6) Move payroll to the cloud –
45% of companies plan to move payroll to the cloud in the next 2-3 years. Doing so helps to eliminate manual work and makes it possible to integrate with other HR software.
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