Payroll: it’s a love/hate relationship for many business owners. It’s a critical activity for serving your employees, but the process is notoriously cumbersome.
In the first segment of our three-part series, we cover the most prevalent payroll pain points businesses face — and more importantly, how to solve them.
1. Manual administrative processes
The individual in charge of processing payroll usually suffers from administrative overload. This includes collecting hourly information from employees, filling out paperwork for new hires, calculating each payroll cycle and organizing information.
2. Lack of focused internal experts
Larger companies can afford to staff a payroll expert, but that’s a luxury that typically isn’t available to small businesses, which means most hire an offsite specialist who isn’t connected to the broader organization.
3. Cumbersome salary calculations
Nobody enjoys figuring out how to pay a prorated salary or paid time off — let alone identifying and administering payroll deductions.
4. Compliance issues
When is payroll required? What taxes does your organization pay, and when should you pay them? What accounts should your business establish? When are final payments due to a terminated employee? These are just a few of the questions you need to answer to establish payroll compliance.
5. Recordkeeping challenges
All businesses are required to keep records of their employees’ salaries and deductions for up to five years or longer. This process can become complex quickly when you must deal with missing data, calculation errors and inaccessibility to necessary documents.
The bottom line
At Aprio, our People Advisory Services team provides expertise in the areas we covered above and can manage your payroll and HR function while mitigating employment risk. Tune in for Parts II and III of our series (coming soon) — and in the meantime, contact our team if you need assistance today.