An efficient payroll system is about more than just paying your employees on time. Many companies run into tax trouble when they make mistakes, and if you handle accounting services alone, it can be an overwhelming task. Luckily, there are a few ways to streamline the process, including working with a payroll service, so consider the following.

How to Make Your Payroll Process More Efficient

1. Don’t Overburden Yourself

First, recognize if payroll is too much to handle on your own. It’s easy to make mistakes with payment, withholding taxes, and other processes if you aren’t experienced or have other responsibilities to attend to. 

Many companies turn to an outside payroll service to handle their needs. These professionals are well-versed in payroll processes, tax law, and regulations to ensure you have a reliable system that fulfills your goals.

2. Offer Direct Deposit

Direct deposit not only saves paper, but it also makes it easier to pay employees. You don’t have to worry about delivering paychecks. Instead, they’re deposited right away into employees’ bank accounts through an automated system managed by the payroll service.

Direct deposit is much faster and reduces the possibility of errors, such as misprints or lost paychecks. You can also send out electronic paystubs to further reduce paper waste.

3. Simplify Your Policy

Many payroll mistakes result from employees not understanding complicated systems. Try to make your policy as simple as possible. Make sure they understand when they’ll be paid, what taxes are withheld, and how business expenses can be reimbursed through the paycheck. Make it easy for employees to contribute to 401(k) or IRA plans and write down your policy on a sheet you can distribute.

4. Establish a Minimal Payroll Schedule

It’s easy to make mistakes when you have irregular or frequent pay periods. Most companies choose to pay employees once every two weeks or twice a month. This also means you won’t have to pay extra fees for processing paychecks more frequently.

If you’re ready to outsource your payroll service, contact Joe Heard, CPA. The company is backed by 15 years of experience and serves businesses in the Checotah, OK, area. This CPA offers a variety of services, including tax return preparation, business consulting, and bookkeeping. Call (918) 473-1492 to schedule a consultation. Visit his website to learn more about his services.