Few things can be as frustrating to a budding entrepreneur than trying to figure out how to do payroll. Don’t be fooled by the accountants and bookkeepers who make bookkeeping look easy. They’ve been going to school for years to be able to do it!
And this difficult task is only exacerbated if you’re utilizing a paper pay stub process. In 2020, there’s no doubt that you should be using one of the many tools available online to process your pay stubs.
in this article, we’ll go over how to implement electronic pay stubs in your organization.
Check Governmental Regulation
The first thing to consider is governmental regulation. Few parts of your business will be as regulated as payroll. After all, the bulk of a government’s income is the result of income taxes.
They want to be sure that your employees are paying them enough money for them to function. Consequently, it’s your responsibility as an employer to ensure that you make their tax season as easy and seamless as possible.
Remember that each state government will have different laws regarding what is required to be on a pay stub. Make sure that you check your state’s labor laws in order to determine which parts of your pay stub are a must-have.
Decide on a Pay Period
The first step to processing payroll is deciding on a pay period. Your pay period is more important than you think.
Too frequent (e.g. once weekly) and you’re just creating additional work for yourself. But on the other hand, if your pay period is too infrequent (e.g. once a month) then your employees could be turned off by that.
The best way to balance keeping your employees happy and not creating too much work for yourself is to use a two-week pay period that is standard across most industries.
Utilize Direct Deposit
Direct deposit is a crucial part of a paperless payroll system. There’s no reason why you should be sending your employees’ physical checks if you can do electronic pay stubs. Make sure that the pay stub creator you choose is compatible with direct deposit payroll tools.
Last but not least, consider outsourcing. As a new entrepreneur, your time is extremely valuable. If you’re spending eight hours a month on doing payroll, for instance, remember that those eight hours is a full day of time that you could have spent on activity that would have grown your business.
It could be well worth it to shell out a few extra bucks to outsource your payroll process.
Electronic Pay Stubs Are The Way To Go!
There you have it: a complete guide to leveraging electronic pay stubs to modernize your company’s payroll process. As a budding entrepreneur, you’ve got enough headaches already, so don’t let paper-based payroll procedures be one of them!
If you’re a business owner in need of more advice, be sure to take some time to check out the rest of the articles available to read on the website!