5 Reasons to Reevaluate Your Payroll Process: A New Year’s Resolution

It’s easy to lock yourself in when you run a business. Sometimes all you need to worry about is your bottom line, hiring the right employees, or simply putting out fires that pop up every now and then. But with a new year just around the corner, now might be the perfect time to sit back and ask yourself if anything needs to change for the year ahead.

One thing many entrepreneurs overlook is their payroll. The truth is that you are not married to your payroll from last year. Yes, you read that right. You can change your payroll processing at any time, although some times are better than others. Lucky for you, the end of the year is the perfect time to reevaluate your payroll.

Re-evaluate your payroll process at the end of the year

A major benefit of switching payroll at the end of the year is that you’ll have knowledge on your side if you decide to switch. You know what worked and what didn’t work last year, and you can predict the problems that may arise again if you don’t make changes. Does run Payroll administration takes too much time? Have you spent too much money on software? Were you inundated with employee errors and complaints?

It’s time to put those problems behind you and think about changing your payroll.

Reasons to take your payroll back to the drawing board

Let’s face it: Even in the best of times, running a business can be challenging. You juggle so many things every day that it can be hard to know what to focus on. One thing’s for sure: there’s absolutely no reason to throw an inefficient or confusing payroll process on top of everything else. No reason at all.

Oftentimes, a payroll processing process can cause you problems simply because it doesn’t meet your needs. If everything worked out in the past, great. But in the business world, things can change in the blink of an eye. Maybe your business is growing so fast that you can’t keep up. Or your budget has changed and you can’t afford your previous salary system. Anyway, you have to keep up with the times. Otherwise you will be left behind.

So, should you change things? Here are five reasons why you’ll want to reevaluate your payroll process for the new year:

1. You process payroll manually

Manual payroll may sound like the perfect way to save money. But between payroll errors and a growing team, manual payroll can become a nightmare.

Making sure hours, wages, contributions and taxes are correct takes up your time. And if you’re wrong about one thing, that mistake will spill over into everything else. Payroll administration takes even longer.

What are the biggest problems you could face with manual payroll? Manual payroll:

• Can take up too much of your time
• Lead to mistakes
• Increase the risk of fines

2. Payroll errors hold you back

Depending on your payroll, the past year may have been a year of payroll errors. There are plenty of potential errors to worry about, such as:

• Misclassifying employees
• Wrong calculation of overtime
• Incorrect payroll tax return
• Using the wrong salary frequency

These are not just simple mistakes. Depending on the issue, you may be concerned about legal issues. Take incorrect payroll taxes, for example. Failure to pay payroll taxes can come with penalties of up to 15% of your undeposited deposit.

If your current payroll has led to errors, it may be time to rethink things.

3. You do not use payroll automation

Numerous payroll jobs are the same pay period to pay period. If you haven’t already, you might want to take advantage of automating those tasks. Payroll automation can help you streamline:

• Tax deductions
• Employee payments

I must warn you that payroll automation is not completely on autopilot. If you have entered the information incorrectly, you will receive incorrect returns. But once you have your employee information squared away, you can put your feet up and check one more thing off your list.

4. You do not offer direct deposit

There’s nothing more fun than the crazy sprint to replace a lost employee check. If your payroll is not included direct deposit, you know exactly what I’m talking about. Paper checks can be lost, misplaced, or damaged just as quickly as you print them.

Direct deposits can get around these problems. Transfer the wages of employees to their bank account without any problems. Direct deposits are safe, convenient for everyone and easy for you.

5. Incorrect employee information is common

Again, your payroll process is only as good as the information that goes into it. The problem is that there is enough information to make mistakes. Tax rules, tax rates, employee hours: this information is subject to change. Incorrect information is the last thing you want to worry about when it comes to your payroll.

Here are some things you need to stay informed:

• Tax forms for employees
• Classification of employees
• Changes in tax rates
• Employee hours
• Overtime

You know your payroll process like no other. If you’ve had problems with incorrect information, chances are your payroll is to blame.

Payroll software features

When you find the perfect payroll solution, you know it. It suits your business needs and saves you time and money. And that headache that used to occur when you did payroll? (Remember those?) They will disappear.

What makes a good payroll match? One thing comes to mind first: Features. Functions. Functions. Let me say it again. Payroll software is only as good as its features.

So, what are the features that should be on your radar?

• Easy installation. You want a payroll system that is easy to set up. No reason to waste time on complicated systems or create new headaches this early in the year.
• Accurate tax returns and deposits. The perfect payroll solution will file and deposit taxes for you. And better yet, it guarantees accuracy. That means no more juggling payroll taxes or freaking out when you see a news article about tax rate changes from two months ago. Look for software that handles your taxes, automatically updates tax rates, and does your year-end W-2 and W-3 ​​returns for you.
• Integrated automations. Collect timesheets, handle personnel documents and manually track employee benefits? That will be 2022. You can integrate with payroll software time and presenceso you don’t have to chase employees for their hours. Employees keep track of their hours and your payroll is automatically updated.
• Self-service for employees. Employee self-service allows employees to change their personal information, view benefits, view their time cards, and print their payroll information. Employee self-service is a great way to stay on top of your employee data.
• Customer service. First-class customer support is critical to your new payroll process. You want to make sure that someone has your back if you have any questions or if something goes wrong. Customer support should be easy to reach and knowledgeable about the product. Look for free customer support with excellent and consistent customer reviews.
• Price. The best payroll software is useless if it doesn’t fit your budget. Look for software that meets your needs and doesn’t break the bank.

Payroll software in 2023

If your 2022 payroll was a disaster, try not to fixate too much on the past. In hindsight it’s 20/20, right?

Now is the time to get on the right track. Surely your payroll process for 2023 should be simpler and more powerful than ever? Absolute. The right payroll software can make that possible.