Steps to Set Up Your Company’s Payroll System

Steps to Set Up Your Company’s Payroll System

Be it a big or small organisation, having an optimised payroll system allows you to be efficient in your financial matters, better fulfilling your responsibilities as an employer.

Here are some things to consider when creating an efficient payroll system for your business:

Independent Contractor or Employee
You need to know which one will form the bulk of your workforce because there is a distinct difference between the two. Legally speaking, it affects taxes, benefits payable and your obligations to them.

Employee Paperwork
Get your employees’ tax information such as tax returns. You can get this information by making the employees fill out a form about their taxes.

Pay Period
You need to decide the pay period for your employees; will you be paying them weekly, monthly or bi-monthly?

Employee Compensation Terms
You need to decide how you will handle concerns such as paid time-off, and how you track your work hours. If you offer overtime compensation, you will need to factor that into the equation as well. Other things like retirement plans or provident funds will also need to be addressed. Furthermore, these things vary for employees with different roles.

Choose a Payroll System
These operations need to be accurate and detailed. There are two approaches: in-house or outsourced. You can even use online cloud based payroll software that makes your job simple through its built-in formulas.

Running Payroll
Once you have chosen a system, you can either choose to start using it yourself or hire an accountant to do it for you.

Keep Records
You will need to be record-savvy as there is now a legal obligation that you preserve records about your employees’ pay even after they have left your employ. This will allow you to remain compliant and have access to detailed employee records should ever the need arise.

Report Taxes
Payroll tax reports should be submitted to the designated departments of the government either on a quarterly or annual basis. It is highly recommended that you maintain transparency and accuracy with regards to this matter.

How Online HR Services Can Benefit You
At HReasily, we offer human resource services online for business owners. You may be interested in the following online services:
With them, you can expect fast and efficient services aimed at making human resource management an easy affair in your organisation.

Conclusion
Getting a payroll system will ensure every dollar is accounted for. Your records will stay on file and help you with managing your taxes. You can use online HR services to ensure the greatest return in terms of value. With it, your organisation will run smoothly, your employees will be happy and you will see growth in your operations.