Small businesses can benefit from payroll service systems in multiple ways. As a business owner, it is crucial that you pay your employees accurately and in a timely manner. Reliable payroll software can help you to pay employees and avoid costly fines, courtesy of the Internal Revenue Service.
When you get new payroll software, make sure you know how to utilize it most effectively. We have included below some tips for small business owners on the best ways to manage payroll.
Research Payroll Software – If you hire an in-house payroll specialist or accountant, make sure that you select reliable software. The best way to find good payroll software is by trying different demos. Do not hesitate to try out free demos if it means getting a feel for payroll service systems.
Update Employee Records – You must keep updated employee records for your payroll system. Make sure to remind your employees that they need to tell you if their information changes. You can ask employees to update their information via an employee portal or by providing you with a paper form. Using employee portals is recommended to minimize the duration of time spent on manually updating employee records.
Track Employee Hours – You should only track hours if you have hired hourly employees. Make sure to show a complete record. The record will help the company avoid costly errors during tax filing season with the IRS.
Reconcile Payroll – As you use payroll service systems, make sure to check your work. You should confirm that your expected payroll aligns with your actual payroll. Consider getting into the habit of reconciling payroll during every pay period. You should do it prior to filing quarterly taxes, as well as before sending out employee W-2 forms. Another consideration is reviewing your employee pay rates. One thing to look for while using payroll software is if there are any discrepancies with overtime hours or tips, if your employees work in shifts. One of the best aspects of payroll software is what it flags. Software can in certain cases automatically flag potential inaccuracies.
Run Payroll – By now, you are ready to approve all payroll checks and direct deposits. The process will most often take a couple of days to fully go through. Some payroll software can provide companies with same-day or next-day direct deposit options. Other payroll programs may take as long as five business days for a direct deposit to land. Make sure your company takes into account the duration of processing so you finalize your payroll by payday.
Why Use Advanced Micro Solutions Payroll Software
Small businesses should seek payroll service systems that can meet their needs year-round. Our payroll software works as an add-on module to our W-2/1099 Forms Filer. That means, small businesses can enter payroll and non-employee compensation by check all year. The software also supports “Live” or After-the-Fact Payroll. Another software feature includes allowing users to create an SSN Verification file.