Paying employees the amount they’re owed, and doing so on time every month (or week), should always be a top priority for business owners, and failing to do so can result in a lot more than merely disgruntled workers. However, while you may have every intention of paying your staff on time and in full, doing so isn’t always straightforward, especially in light of the frequency of payroll law and regulation changes; making it increasingly more complex to maintain payroll compliancy.
With this in mind, a payroll check-up can be an extremely worthwhile exercise, and while it must always be carried out by a payroll professional, it can help make sure your payroll practises and all related procedures are fully compliant with all federal, state and local regulations. When carried out professionally, a payroll check-up can identify any existing (or potential) problems with your payroll system as a whole, and help to correct and prevent them, respectively. Not only will this help keep you in line with all appropriate laws and existing regulations, but it will help keep your employees content and satisfied, too.
Never had a payroll check-up carried out before? Here are 4 ways that doing so can help keep your business on track:
- It can keep you up-to-date and compliant with payroll laws and regulations
While there are numerous challenges associated with payroll compliance, failure to adhere to all necessary laws and regulations can see a business face stiff fines and penalties, some of which can be financially painful for smaller businesses.
With a payroll check-up, however, you can ensure that you’re always compliant, all of the time.
- It can help identify errors and enable them to be corrected
Payroll errors are by no means unheard of, but if not spotted and corrected swiftly, can prove costly for a business. By having a payroll check-up carried out, errors can be picked up on and corrected quickly, helping ensure that all employees are paid in full and on time, all of the time.
- It can increase efficiency
By identifying any areas of your payroll system that might benefit from being improved upon, a payroll check-up can make it as efficient as it can possibly be, in turn, saving you both time and money, and giving you more freedom to focus on expanding your businesses growth.
- It can give employee morale a much needed boost
No employee likes not being paid on time, or not being paid the full amount they’re entitled to, and if this continues to happen, it can have a significant impact not just on their morale, but on their productivity levels. In a worst case scenario, an employee may decide to leave their role if the problem persists, and even pursue legal action if appropriate or deemed necessary.
Employees that are paid accurately and on time, are far more likely to give you a higher quality output, and retaining existing employees and hiring new ones, is typically a lot easier when an employer has a good reputation for payroll precision.
What about outsourcing payroll?
While payroll check-ups are a great exercise for all businesses who may be experiencing issues with pay, or who simply want to make sure they’re doing everything right and as efficiently as possible, if you outsource your payroll requirements, you’re much less likely to need one. Outsourcing payroll as a smaller business with a smaller budget, generally means that you make savings on cost and time, gain from their compliance expertise, get more accurate processes and can even benefit from heightened security.
Payroll check-ups and outsourced payroll are both important contributing factors towards a healthy payroll system, and if you want happy employees, greater production levels and zero compliance concerns, you should seriously consider reviewing your payroll options and outsourcing your requirements.