Any small business owner knows just how taxing the payroll process can be—literally! Often times fraught with peril, the idea of doing payroll on one’s own can be quite daunting. Holidays, family emergencies, technological and human error, and other faults can easily turn payday into a nightmare. With that being said, many small business owners resort to hiring a personal accountant which, while effective, can truly wreak havoc on the budget. Luckily though, with a few simple remedies, you can easily make payday much easier and much faster.
Starting with holidays; even though the holidays are supposed to be a happy, joyous time, when it comes to payroll holidays are a little less-than-friendly. For example, many holidays throughout the year are observed by the federal government. In other words, federally-observed holidays result in the closure of banks, putting a halt on payroll processing should payday fall during that time. Unfortunately, many holidays have the uncanny knack to sneak up on unsuspecting small business owners. Luckily though, there is a simple fix to this problem and that is to merely keep a calendar posted that informs employees precisely when payday, also including when any holiday may interfere with the regular roster of scheduled payments.
User and computer errors are slightly more difficult to overcome as they usually occur unpredictably and for completely random reasons. From the occasional user-generated typo to virtual time-clocks to complete disasters in human resources, anything can happen. One of the best things you can do as a small business owner is to invest in quality payroll software that automates most payroll processes, minimizing the risk of errors. For instance, the finance giant Intuit has introduced payroll software that features an instant payroll calculator that makes the calculation of employee paychecks lightning fast, while at the same time reducing the risk of facing any tax penalties.
Employees as a whole can also make payroll dicey. Essentially, whenever an employee is fired, quits, or simply takes a leave of absence for whatever reason, the payroll takes the brunt of it. Depending on the state, there are generally laws posted that dictate when an employee must be paid based on the employee being fired or quitting. However, a leave of absence can prove to be a much more difficult situation since they usually occur without warning and the duration of the absence is generally unknown. In this case, a meeting with Human Resources may be necessary in order to collaborate and see how to coincide payroll with and possible benefits.
The perils of payroll can rear their ugly faces at any time, usually without warning. However, the right knowledge coupled with adequate payroll software can lead to a much faster payday, running as efficiently and smoothly as possible.