The payroll preparation process probably eats up a large amount of your time. Although there is no way out of doing payroll, there are ways to streamline the payroll preparation process and make it easier on yourself, so you can spend more time focusing on other things.
• Make Your Policies Clear– Set a strong standard for how commission, expense reimbursements, paid time off, attendance, and other pay-related policies will be handled. If you do not make these policies consistent, you will find that doing payroll becomes more complex than it needs to be.
• Properly Classify Your Employees– All of your non-exempt and exempt policies should be classified properly and according to FLSA guidelines. If you fail to classify your employees correctly, not only could you have problems with payroll, but you may also end up owning back wages and fines when tax season comes around.
• Prepare for the End of the Year– At the end of the year, planning for the forms you will need to provide your employees with for them to file their taxes will make everything go smoother. Be aware that the forms you will need to provide to your employees, such as W-2 forms, are usually released by the IRS in early December.
• Consider Outsourcing– If the payroll preparation process gets to be too much, outsourcing your payroll operations can be a highly advantageous solution. Contact us at Cathy E. Parker, E.A. Bookkeeping & Tax Service today to find out more about why your business should strongly consider leaving its payroll needs up to us.