It is one of the most critical tasks to manage the payroll and it is face by entrepreneurs. The business owner must also ensure that you abide by the laws and regulations for your business. As the labor regulations and litigations are on the rise, blunders in payroll could be costly for your business. Handling payroll in the wrong manner is one of the complications in bookkeeping services.
Different methods to do payroll:
- Manual Payroll
- Get accounting or bookkeeping services
- Payroll Software
Below are certain tips to assure that you avoid all payroll mistakes and eliminate errors in your business.
Maintain National Employment Standards
You must also take care to maintain the National Employment Standards under the Fair Work Act that are applicable to all employees in relation to the following:
- Annual Leave
- Parental leave and related entitlements
- Maximum weekly hours
- Compassionate leave
- Flexible working arrangements by employer
- Compassionate leave
- Community Service leave
- Long Service leave
- Fair work information statement
- Public holiday
- Redundancy pay
Maintain Accuracy in Records
Entering the data manually is next to disaster. There will be too much to do while using paper timesheets. When you are tracking the staff, entering their hours and re-entering their data into the system is very tiring.
Instead, you can make usage of electronic timesheets that helps the managers to do certain things. These could be to record staff attendance, time spent on shifts by employees, collection of automatic timesheets for approval, and exporting timesheets to payroll software. Below is the list of records that must be kept:
- Pay Records
- Employment records
- Leave Records
- Contribution in Superannuation records
- Termination records
- Transfer of Business Records
- Guarantee in annual earnings records
The payroll is already enough complicated without adding overtime calculations. It could be a complex scenario after adding overtime calculations. Moreover, if you are handling payroll manually then overtime mistakes could increase. It could be costlier to pay correct wages overtime when there is an added penalty fee. When you make use of sophisticated software, overtime payments are made easier.
Stay updated with local regulations on employment
Each year there are alterations in pay rates, and for this financial year as well Fair Work Commission has announced certain changes. The Fair Work Regulations are a set of requirements for hourly staff. The employers in Australia are required to pay their employees a specific premium on-call or work for scheduled hours. The process of payroll could be made easier for managers by knowing the regulations. They may also look for software meant for workforce management that takes compliance with priority.
By using workforce management that combines your payroll system to enhance the efficiency, cuts the stress linked with payroll. When you reduce manual information from the process, therefore, you also lower the chances of human errors. The scheduling errors can also prevent that leads to costlier problems in payroll and increase overtime.
Automated Payroll Taxes
The rates of payroll taxes keep on changing. You could be responsible to calculate tax and worker deductions, in a single pay period for:
- Social Security Tax
- Federal Income Tax
- Medicare Tax
- Various local Taxes
- State Income Tax
Your business could have to face certain penalties if any mistake is made on payroll tax liability including payments with interests.
Mark Payroll deadlines in Calendar
Ensure that you keep all the payment deadlines in Calendar. You can add a reminder on your phone regarding this so you will be inform when to submit. In this way, you will not have to face any penalties.
Choose Right Payroll Software
Those days are gone when one had to use a pen and paper to manage payroll. Efficient payroll software helps you to manage pays, superannuation, taxes, and many more. Lots of processes are automating so work of the longest hours is reduced. It helps to run your business in a smooth manner and will give you some time to work on certain areas of your business.
Hire A Professional
It is best to get the assistance of experts if you want to get the things right with your payroll. If you are already finding problems in payroll, it is advisable to seek expert’s advice. In this manner, you would be able to concentrate on the growth of your business and will have peace of mind. Avail our small bookkeeping services to run your business hassle-free.
The above-mentioned payroll mistakes can be avoided by contacting a professional who can assist you with all your payroll needs and provides you relevant advice to you. When your payroll is simple and accurate, you are a winner. Your employees are happy if they are not underpaid.