Better Employee Management: Payroll
Better Employee Management: Eight Critical Areas for Small-Business Success
There's nothing more important to employees than their paychecks, but keeping accurate records and issuing timely and correct payrolls is a complex task. Do small-business owners have the time and expertise to process payroll?
According to the U.S. Census Bureau, small-business owners with employees put in more hours on the job each week than owners with no employees. In fact, just over had of business owners with employees worked more than forty hours per week, but only 26% of business owners without employees worked more than forty hours per week.
Issuing payroll each pay period can be time intensive. Paychex experts estimate that, on average, an employer spends fifteen minutes per employee, per pay period, processing their payroll.
To prepare payroll, employers must calculate, distribute, and track employee pay. These tasks require the person responsible to understand the applicable federal and state laws, determine rates of pay for employees, distribute pay, and reconcile bank accounts. All this, while also figuring the right amount of federal and state employment taxes to withhold for payment to government agencies.
Payroll affects many other aspects of a business. When it's handles well, a smoothly running payroll boosts everything from financial management to employee morale.
A recent Paychex survey revealed that many accountants believe business owners should seek professional help with payroll processing, with 50% of responding CPAs saying they refer one or two clients per year to a payroll provider.
Have a question about employee management? Connect with a SCORE mentor online or in your community today!
Additional employee management tools:
Payroll | Employee Communications | Benefits | Workplace Safety and Loss Prevention | Compliance | Interviewing and Hiring | Employee Motivation and Development | Employee Separation