While we all hope to find work that is inherently satisfying and that fulfills all of our expectations, many of us work, at least partly, to earn a paycheck. And, anecdotally, one of the biggest factors behind high employee morale is the regularity of wage and salary payments. Therefore, handling your employee payments with care and diligence is of the utmost importance as an employer.
When you have your payroll processes in good order, you will be able to retain the best talent in your business. Your workers will not have to worry about missing, delayed, or incorrect pay statements. Your staff will be able to understand their payments, and you, or someone you hire, will be able to field their questions and concerns in an informed and efficient way. This is the goal. Now, how do we get there?
Let’s look at some of the essential things that employers need to know about handling employee payments.
Comply With Single Touch Payroll
In Australia, all business owners are now required to comply with the single touch payroll system, unless you have applied for an extension with the Australian Taxation Office. This system requires you to report your payroll and benefits information to the ATO each pay period. This can be done through software, online, or through a registered tax agent. If you have not yet enrolled, learn more about the STP system on the ATO’s website.
Set A Schedule
Handling employee payments is much easier when you set a regular schedule to get this work done. Set a payment schedule and be diligent in completing these tasks on time.
Use Payroll Software
Handling employee payments is much easier and far more efficient when you use payroll software. Payroll software for small business is a major ask by every mid-size company to focus further on business operations and ease the payroll, tax processes. Contemporary payroll software allows for seamless integration and compliance with the ATO’s reporting system for STP. The software also reduces the number of errors that are made in your payroll process while making the whole process digital, organized, and streamlined.
Communicate Your Payroll Plans
Make sure your employees are aware of and understand your payroll system. If you let your employees know what to expect, they will not raise unnecessary concerns or questions. Be transparent about your payroll processes to avoid mistakes and save time.
If there are steps in your payroll process that are objectively unnecessary or that duplicate effort, eliminate them, or combine them with other steps to make things more efficient. Simplifying your payroll process will not only speed it up. It will also reduce the odds of mistakes being made along the way.
Keep Organised Records
When mistakes are found or when you need to check on payroll data from previous periods, it is much easier to do this when your records are organized. Digitizing your payroll process makes this much easier. However, if you are holding out and sticking to paper-based payroll, make sure that you keep your records organised.
Review And Audit
Regularly review and audit your payroll information. This will give you peace of mind in knowing that everything is in good order. It will also give you a final check when it comes to errors and help you avoid financial fraud or misreporting in your business.
Get Your Payroll In Good Order
These tips will go a long way towards streamlining and simplifying your payroll process. And when you handle your employee payments efficiently, you can expect fewer complaints and higher satisfaction throughout your team. Whether you are a new or experienced business owner, there are always ways to improve processes like these.