Payroll Management Tips for Startups and Small Businesses
Managing payroll as a small business or startup can be time-consuming. There’s a reason why larger businesses have entire departments dedicated to it.
Of course, devoting this amount of resources isn’t possible for a small business or startup. Instead, they must be clever with how they spend their time. On that note, here are the top 5 payroll management tips for startups and small businesses.
1. Know your deadlines
It almost goes without saying, but you must know your deadlines. From pay-date cutoffs to tax submission, the consequences for missing them can be anything from annoyed employees to IRS fines.
Ensure you have a system in place that reminds you when you need to submit important payroll information, and don’t forget! Even better, find a tool that does these things for you automatically.
2. Keep up with legislation
Do you know the specifics of payroll legislation for the state(s) you operate in? Probably not, because who does?
While you won’t need to know payroll laws off by heart, it’s important to remain aware of changes that could affect how you pay employees. Find a system that keeps up with legislation and incorporates into action.
3. Pay attention to details
Always double check payroll information when onboarding and offboarding employees. Also, make sure they keep you updated with changes to their information, such as contact and bank details and addresses.
You should obviously check payroll submissions every time, too. The last thing you want is to accidentally send an employee’s wages to the wrong account or miss some information on your tax forms.
4. Consider training
Sure, you might not have time, but payroll training could be a massive benefit in the long run. After all, if you’re submitting wages for each employee every month and dealing with other bookkeeping, it helps to know what you’re doing.
You can find payroll training courses online, although they can be expensive. It’s up to you as a startup or small business owner whether you consider this an acceptable expense. Even better choose a product that requires no training.
5. Self Service
The employee self service is essential and is your way of automating many things. Payroll is such a thing where you often get involved exchanging information which can now be offered as self survice. Your employees will be grateful that they can access what they need when they need it and from where they are.
If you work with a CPA or an independent payroll company or an online payroll software, make sure they can provide employee self survice. The employee self service can save you days. This is a great way to delegate and gain time.
6.Invest in Modern Software
If all this sounds like too much work (which it definitely can be), consider investing in payroll software. The best payroll software for a small business or startup will automate the more repetitive tasks. Look for a tool that evolves over time. Hopefully, it should free you up to spend more time running your business.
Paynub is just such a payroll platform for small businesses and startups. It can manage direct deposits, handles tax filings at the local, state, and federal levels, and generate financial reports.
It also streamlines employee onboarding and offboarding and works seamlessly alongside other business solutions on the Bindr.AI platform. Everything is cloud-based and entirely digital, meaning small businesses can manage their workflows with ease from any authorized device.
Perhaps the best payroll management tip for startups and small businesses is to not take on too much. Payroll is time-consuming but necessary, so offloading such tasks and automating those is the way forward in this day and age of technology.
Paynub is the answer to all your small business-related payroll concerns. As an all-digital platform, it offers convenience and security with industry-leading benefits at industry-beating prices. Get in touch to find out how we can help your business.