Salary management is an important part of any business, big or small. You cannot simply hand out checks to your employees without maintaining a record, because you will need the documents later for accounting and tax purposes. You don’t need us to tell you how strict the Internal Revenue Service (IRS) is about employment taxes. Remember the $7 billion hauls in civil penalties solely from the violation of income tax policies four years ago?
That said, we understand how complex and utterly frustrating it can be to manage employees’ salaries, especially if you have a large number of people working under you. The task is usually delegated to the accounting or human resources department, but even they often have a hard time managing payrolls. That is exactly where our top employee salary management tips come into the picture. They will ease up the process ten-fold!
Organize the Payroll Efficiently
You may already be using a salary management calendar to keep track of when and how an employee will be paid, or to record the deadlines of specific projects and timecards. However, have you considered color-coding the tasks on the calendar according to their urgency? How about marking the dates for paid vacations or sick leaves of employees? Keeping information like that handy will greatly aid you at the time of disbursing salaries. Additionally, don’t hesitate to approach HR personnel for help regarding salary management. They have already been trained in payroll processing, so they may have a few amazing insights to provide. If you manage a globally dispersed team, consider investing on a global payroll compliance software to streamline the process and avoid any payroll and tax issues down the road.
Keep Installing Upgrades
This is the age of exponential advancements in technology, and you don’t want to fall too far behind in the race. Have you been using outdated applications to manage employee payroll? Though they may have been effective so far, there is always something better out there. Consider upgrading your existing apps, use an automated paystub maker to generate payment slips, and purchase the latest suite of payroll software. Making simple upgrades like these will speed up your salary management processes immensely. After all, you have a business to take care of, and you cannot afford to spend too much time managing employee payroll.
Absolute Transparency is the Way to Go
Did you know that your employees often spend a better part of their working hours arguing with your accounting team regarding their salary on payday? It never helps anyone, wastes the time of both the employee and the accountant, and adversely affects the company’s reputation as a whole. The primary reason for arguments like these is the lack of transparency in the payroll system. There really is no point in hiding the process from your own employees. A completely transparent system will definitely improve employee productivity in the future.
Your employees keep the engines of your business running efficiently. They are, indeed, the backbone of your company. Managing their salaries well and ensuring a smooth transfer of the right amount every week or month is the least you can do for them. Heed the aforementioned tips from our top professionals to never let your valuable employees experience ineffectual salary delays here on out.
