For business owners with employers, payroll is a necessary task that can slow your day and tie you down if you let it. If you’re looking for a way to make payroll less time-consuming, here are five ideas you can put to good use:
- Employee Onboarding
If you hire a lot, empower your new hires by letting them do their paperwork for you. A good payroll system allows employees to “onboard” themselves, completing the I-9, W-4, and direct deposit authorizations electronically, even before they show up for their first day. You’ll still need to ask for ID on their first working day, but at least you won’t have to do their paperwork for them.
- Integrate Employee Benefits
Rather than hire several separate companies to handle benefits, some payroll systems allow you to integrate benefits solutions right in their dashboard. That way, you won’t have to re-enter employee data in multiple systems, which often gets out of sync. Deductions and payments can also be integrated to save accounting time.
- Delegate Timesheet Entry
Require non-exempt employees to enter their own time; all you should have to do is approve it. The right timesheet application can take care of that, and a great timesheet application will allow employees to enter time from multiple options, including timecard, cell phone, and others.
- Eliminate the Annual Worker’s Compensation Audit
Tie your worker’s compensation vendor to your accounting system, and you’ll be able to avoid that time-consuming annual reconciliation report required by your worker’s compensation insurance company. You can also avoid the large annual payment because the insurance will be taken out each payroll cycle.
- Reduce the Frequency of Payroll
It’s not always possible, but if you can pay employees less frequently, you might be able to cut your payroll time in half. Pay weekly employees every two weeks or pay bi-weekly employees monthly. Reducing payroll frequency boosts cash flow as well.
Try one of these five ideas to streamline your payroll time and costs in your business. And as always, let us know if we can help.
Effective December 1, 2016, federal overtime regulations will change and may affect how you are paying your employees. These overtime updates will affect 4.2 million workers across the country.
The new rules will raise the salary overtime-eligibility threshold from $455/week to $913 ($47,476 per year). This new threshold will increase every three years. Salaried workers already entitled to overtime will get increased protection.
Employers have a choice of three actions they can take to employees who become eligible for overtime that weren’t before.
- Pay time-and-a-half for overtime work.
- Raise worker’s salaries above the new threshold.
- Limit worker’s hours to 40 per week.
Let’s say you have an employee that earns $500 per week and works 50 hours a week. Previously, you didn’t pay overtime, but beginning December 1, 2016, you will need to. At $12.50 per hour, you would owe them the regular $500 plus 10 hours of overtime at $187.50.
Let’s say you have an employee earning $800 per week and they work 50 hours. Previously, you didn’t pay overtime, but now you will need to consider it. You could pay them overtime, which works out to a weekly pay of $1100. Or you can choose to give them a raise to $913 per week – the new threshold – and continue to exempt them from overtime. The latter is the lowest cost alternative.
In both cases above, it may be cheaper to hire an additional part-time worker to work the 10 extra hours per week.
You can find more about the new overtime law here:
And if you have any questions about your payroll, feel free to reach out anytime.