Every small business owner has many “hats” to wear to keep his/her business functioning properly and profitably. One of those key “hats” is to ensure that payroll is handled well because payroll is truly one of the most important aspects of every business. So, having a well-developed and reliable payroll system should be regarded as essential for business success.
Why is Payroll So Important?
Payroll impacts an enterprise in many ways. Employees need to be able to count on being paid consistently, accurately, and without delays. Without these, the morale of an organization can be greatly damaged, causing employees to question the company’s health, or even leave. Fair and accurate compensation is a measure of an employee’s worth to the organization and that has a direct impact on their level of engagement, commitment and productivity. Payroll is a key element of a company’s cash flow, and it has a direct impact on an organization’s taxes. Thus, a solid payroll system should be a major requirement for every business.
10 Signs Your Payroll System Isn’t Working
Your payroll system may need to be changed when it causes problems and doesn’t meet your needs. Here are 10 signs that your payroll system isn’t working:
- Your organization is still processing payroll manually, even when professional services and better systems, including automation, are available.
- There are too many mistakes including problems like misclassifying workers, miscalculating wages, using the wrong payroll frequency, miscalculating benefits, and filing payroll taxes incorrectly.
- You aren’t offering direct deposit to your employees.
- Errors in basic employee information have become commonplace
- Your system makes it difficult to manage multiple employee classifications.
- Your payroll system is not compatible with your HR system and HR management processes.
- You need to use too many manual workarounds.
- There is limited reporting capability.
- There are no reminders or tools to keep up with regulatory requirement updates.
- It is difficult for employees to access their payroll information.
How to Fix Your Payroll System
Start by reviewing your existing payroll process. That will help you to clearly identify the problems and shortcomings of your process and identify ways to improve accuracy and regulatory compliance, as well as to strengthen your financial controls.
Second, develop a way to integrate payroll with your HR functions so that you have a total workforce management system.
Third, get outside expertise to improve your payroll systems and give you peace of mind.
Reasons Your Small Business Can Benefit from Professional Payroll Services
A professional third-party provider of payroll services can implement quality payroll systems and provide their services to ensure that your payroll process is top-notch. An expert payroll services provider can help your business be more nimble, offer recruiting and retention support, and save significant time. They can ensure that correct information is maintained and keep critical information secure.
Choose an Outsource Payroll Service to Assist You
Choose Palmetto Payroll, South Carolina’s payroll partner. We serve over 300 businesses throughout South Carolina, with offices in Columbia and Charleston. We offer expert payroll, tax filing, tax depositing, Human Resource services, timekeeping, and management reporting. We pride ourselves on superb customer service and efficiency, using the latest technology.