Use direct deposit
Direct deposit is a convenient resource that most employees thoroughly enjoy. Having a direct deposit system enables them to be able to access their paychecks without having to wait in lines or deal with the hassle of visiting a bank each and every payday. When you get down into it, over sixty percent of United States employees use direct deposit as their primary method of payment. There are several benefits on the payroll distributor’s side as well such as reduced risk for lost checks and check fraud. You should also consider the amount of time being saved by using direct deposit. The amount of labor being utilized is to be taken into account, such as folding and stuffing checks into envelopes as well as addressing those and printing out the labels. This part of payroll administration can be not only time consuming, but also labor intensive. All of these factors eventually add up to money and company costs. Direct deposit not only saves everyone involved precious time, but the paper costs should also be considered. When you break it down, not only the paper the check is printed on but the envelope it is being sent out in and the assembly costs need to be considered. There is also the possibility that your printed checks may get lost, which will cost you all of the “stop payment” fees associated with losing a check. These are fees that your company can probably do best without.
Know How Long It’s Taking & How Much it Costs to Process Payroll
If handling your company’s payroll is a task you keep within your company, it’s quite important to accurately assess and consider the amount of time being spent to do so. Time is money and if you are dedicating a copious amount of time to handle your payroll correctly, this may be an expense that you can minimize by using some additional help. If you have followed the previous advice and have accounted for the regular hours being dedicated to keeping track of your payroll, you should also consider the time being spent on staying up-to-date with ever changing regulations, taxes, and the like. There are often mistakes that need to be corrected, record keeping that needs to stay current, and sometimes there are lost checks that need to be reissued. When you consider your payroll expenses, having an accurate idea of how much time is being allocated to handling this vital task for your business will help you determine if hiring staff exclusively for payroll services can be a more cost effective option.
Consider Outsourcing Payroll Processing
Many human resource administrative tasks can be eligible for outsourcing, including payroll processing. This task is huge when it comes to keeping your company going, however, it does not create any revenue. When you look at your potential profit margins, it may become more desirable to place your focus elsewhere that can help your business grow instead of on filling out tax forms. There are HR companies that are happy to help with these daunting aspects of running a business. Choosing to employ them will not only help with your stress level, it will allow you to focus on ways to expand and reduce payroll costs and minimize mistakes.
If you decide to handle your company’s payroll through outsourcing or internally, there are a few ways that you can save both time and money when handling one of the most important administrative aspects of your business.