10 Payroll Tips You Should Know

1

. Determine whether your employees should be salaried or paid hourly.

For most employers, putting employees on salaries is easier to manage. Salaries take the stress out of determining how much your employees are paid each month and keeps everything consistent.

However, if you have hourly employees, make sure you have a system in place for how you keep track of time and compensation.

2. Decide how often you’ll pay your employees.

Every employer needs to decide on a pay period for their employees. Pay periods can be weekly, bi-weekly, or monthly. This will help you stay organized and make payroll run more smoothly.

3. Classify your workers.

Another important payroll tip to follow is properly classify your workers. Whether you hire full-time employees, independent contractors, or interns, if the person is performing work for your company, they typically should be classified as an employee.

For more information on worker classification, refer to the Employer’s Tax Guide.

4. Pick the best software for the needs of your business.

When choosing payroll software for your company, try to select an option that’s hosted on the cloud. This will make it easier to access all of your payroll information in one place, whenever you need it.

In addition to finding payroll software, invest in a management program that takes the stress out of payroll for you. For example, here at Namely, we enable employers to integrate their payroll software into our system, which boosts collaboration and improves communication during the payroll process.