Running a business definitely has its rewards. Of course, it’s not all sunshine and lollipops, but it can be fun, challenge you, and provide a tremendous sense of accomplishment. However, the pain of managing payroll and benefits can place a damper on a good thing.
The consequences of running afoul of tax and employment laws are far too costly to ignore. This is not an area of your corporate operation you can file under “Things to do when I get to them.” You have to deal with these issues, so it’s in your best interests to make doing so less of a struggle. Here are a few ways you can make payroll and benefits management less of a headache for you and your company.
Find a Great Partner
Perhaps trying to keep pace with laws, managing vacation time, and remembering when employees become eligible for 401(k) contributions is too much. It’s OK to admit it. That’s why there are human resources partners out there who will do all that heavy lifting for you.
In fact, there are a lot of companies in this business, so know what to look for. The provider should have great references from clients in your industry. They should also have strict security protocols, manage regulatory compliance, and be able to integrate with your existing systems where possible.
If you’re an international business, your global payroll provider should have a spotless compliance record in the countries where you operate. And no matter where in the world you have employees, they should be able to access their information easily.
“Partner” is a key word here. Look for a company that offers all the services you want to outsource while maintaining clear lines of communication and reporting. You may be relinquishing some HR tasks, but you aren’t giving up control of your employee relationships.
Educate Your Employees
Deciphering information about health insurance, retirement plans, and other benefits can be like trying to read a foreign language. Policies about paid time off, family leave, and work periods required to qualify for some benefits may be equally confusing. The result is a lot of extra time spent answering the same questions ad nauseam.
To make payroll and benefits management less of a headache for you, teach your employees the basics. This doesn’t have to be complicated. Teaching them how to read their own pay stubs is a great place to begin. Then talk to them in plain language about coverages under your health insurance policy and how that maternity or paternity leave will work.
If you’re not outsourcing payroll and benefits management, your HR staff will be the in-house experts on these matters. This may take conscious training if they’ve been more focused on recruitment and new employee training hitherto. In the absence of a payroll services provider, making HR the go-to place for payroll and benefits questions will save you time and effort.
Establish Clear Policies and Procedures
You’re unlikely to spend thousands of dollars on marketing by “winging it.” Instead, you take the time to develop a plan and put it in writing. Your payroll and benefits should be no different.
If you don’t already have written policies and procedures surrounding payroll and benefits, get started. If you do but they’re outdated, take some time to revisit them and bring them up to snuff. Make the task less daunting by taking advantage of the wealth of online resources on these subjects.
Make sure all such policies are comprehensive, consistent, and sufficiently detailed. There should be policies about commissions (and whether they’re shared), opportunities to receive bonuses, and 401(k) employer matches, among others. Don’t forget to include procedures for lodging a payroll-related HR complaint.
The exercise of creating policies and procedures and committing them to writing ensures they will be thoroughly thought through. After doing all that work, don’t leave the manual on the shelf. Provide your employees easy online access to the information and encourage them to use it.
Embrace Technology
If you’re still using paper time cards and hand-signing paychecks, you need to join the digital age. Technology will not only save you vast amounts of time, but it will be more accurate to boot. It’s high time to embrace it.
Technology provides an easy way to coordinate payroll and benefits. There’s no need to check employees’ PTO manually to make sure their paychecks are accurate. Regulatory compliance is another great reason to automate processes. There will be fewer errors in tax withholdings, for example, which can become costly mistakes.
Technology will simplify payroll and benefits administration. Of course, getting a digital system set up and running will require time and money. But once it’s in place, there will be little left to do except keep it updated.
Get Some Relief
Payroll and benefits management can take some of the joy out of running a business. But if you’re dependent on employees to keep your doors open, it’s a necessary evil.
Find relief from the headaches by using these tips to make that process work smarter. That way, you and your employees can leave the ibuprofen in the break room.
