Do's and don'ts to make payroll hassle-free

Ghina Fahs
April 18, 2023
Do's and don'ts to make payroll hassle-free
Core HR
Employee experience
Best practices

Ah, payroll: the “necessary evil” of every business owner. Payroll processing may not always be a walk in the park, but it’s one of the most important pillars you need to get right in order to make sure your people are taken care of and your business stays up-and-running.

From ensuring that employees are paid accurately and on time to complying with various regulations and laws, there are a bunch of factors to take into consideration. So, we’ve broken down some do's and don'ts to keep in mind when managing your payroll to help make the process a total breeze, all while keeping your people happy!

Do: Stay up to date on regulations

Payroll regulations and laws can change frequently, so it's important to stay up to date on any new developments that are relevant to the country your company is based in. This means keeping track of changes to labor laws, tax laws, and other significant regulations, as well as ensuring that your payroll practices are compliant.

Do: Communicate with clarity and transparency

Be sure to communicate openly with your employees about how, when, and how often they’ll be paid, as well as how their pay is calculated, what benefits they're receiving, and any other relevant information they need to know. This includes any potential changes to payroll policies or procedures. You can do this by putting together a comprehensive set of policies and practices for all issues that affect the pay of your employees.

Additionally, make sure you're communicating with other stakeholders in your business, such as your accountant or HR department, to ensure everyone is on the same page.

Remember not to withhold any important pieces of information! Instead, share all information in a timely and clear manner, and be willing to answer questions and address concerns as they arise.

Don't: Ever let employees chase their salary

Pay your employees on time, always. Never let it get to a point where an employee has to chase their salary, because as soon as that starts to happen, know that they’re about to have one foot out the door.

Not only can late or missed payments damage employee morale and trust in the company, but these situations can also lead to legal issues and potential fines for failing to pay employees on time. Paying employees on time shows that you value their work and respect their time and personal lives.

Prioritizing timely and accurate payroll management will only bring you closer to cultivating a happy and satisfied workforce that thrives in a productive people-first work environment.

Do: Automate your payroll process

Whether you're using software to track employee hours or automated payment systems to issue paychecks, automating as much of the payroll process as possible can be a lifesaver when it comes to payroll management. Besides giving you your time back, automation can mean fewer errors, improved accuracy, and timely payments, all of which are important for fostering trust with employees. In turn, you’ll notice more efficient business operations and improved profitability.

Many businesses still process payroll manually, and while this might seem more economical in the short-term, it’s actually pretty counter-intuitive—manually processing payroll is costing you hours of labor that could be spent on other projects. Even if you’re doing it yourself as a small business owner, what if you spent that time networking with new clients or increasing sales leads instead? If you want to make your business more cost-effective, don’t overlook the benefits of automation.

Software programs like alfii can help your work become far more efficient and give you back precious time by making it super easy to approve and submit payroll in just a few clicks. All that with peace of mind that hourly wages, salaries, and bonuses are correct at all times.

Don't: Forget about back-up

While automation can be incredibly helpful and time-saving, it’s always best to keep accurate records of your own, back-up all your data, and have everything double-checked by a human set of eyes! Be sure to review payroll reports regularly to ensure accuracy and avoid potential issues.

Your records should include everything from employee hours and wages to tax withholdings and benefits. Not only will this make your work easier when it comes time to process payroll, but it can also help serve as tangible memory that you can always return to should you ever need it.

Don't: Stop learning

Managing payroll is a delicate process that requires close attention. If you're ever feeling overwhelmed or unsure about how to proceed, don't be afraid to ask for help. Whether you reach out to your fintech service provider or consult with an expert in the field, getting the support you need can make all the difference.

On the other hand, no matter how experienced you are with payroll management, it's important to remain open to learning new ways of doing things. There’s always some new invention around the corner or a surprising perspective to consider, so be willing to ask questions, seek advice, and stay curious.

Don’t: Skip getting feedback from employees

Like with anything else, getting (and actually using) insightful feedback from your employees can catapult your evolution as an organization that puts its people first and attracts top talent.

Getting feedback on your payroll processing can help ensure that the system is working effectively and efficiently. Employees may have insights into areas where the process could be improved or streamlined, which can save time and reduce errors.

Not only that, but getting feedback also helps to build trust and transparency between employers and employees, while keeping everyone involved on the same page when it comes to payroll. Employees will not only feel heard and cared for, but they’ll also know that they’re contributing and adding value beyond their assigned roles.

To conclude

Managing and processing payroll is a crucial aspect of running a business, one that requires close care and attention to detail. Following these do's and don'ts can help you get payroll right from the jump and create a positive and productive work environment, reduce errors, improve profitability, and cultivate a workforce that feels valued and cared for.

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