Effectively Managing PayrollNov 20, 2018
Effectively managing payroll is imperative for a successful business. Having a system in place where employees have no issues in getting paid will keep your entire staff happy.
It is vital that a standard procedure is put in place that allows enough time for the week, fortnight or monthly wages to be calculated and paid to the employees. As a general rule of thumb, if a working week or fortnight ends on a Wednesday, the business will be able to ensure all information be collated on the Thursday and payment made to employees on the Friday.
Payroll systems and processes can be very complex. The following are just some issues that need to be considered when establishing a procedure:
- Establishing employment arrangements
- managing employees work hours, overtime, holidays and sick leave
- ensuring that their wage categories are set up correctly
- ensuring the correct tax and super has been calculated
- ensuring employees wages, super and tax are paid on time
Payroll software is essential in managing and maintaining a businesses payroll. With Xero alone, all of the above aspects can be completed. An employee can be set up in your businesses Xero file. All of their employment details can be added. Xero will automatically calculate net wages, tax and super for each employee. An ABA payment file can be generated and uploaded through internet banking to ensure employees are paid on time.
Depending on what business type you run, will determine what type of payroll software you require. If you employ mainly full time employees, you really only need Xero to run your payroll. However, if you run a retail or hospitality business, who hires casual staff, maintaining your employees and payroll function needs much more attention. This is where a tool like Deputy can come in to play. Deputy features are as follows:
So not only can you manage your payroll function (through linking with Xero) but you can manage your entire workflow, scheduling and employee requirements in one convenient piece of software.
The amount that your business could benefit from outsourcing and effective managing payroll is huge. Contact us to discuss how we can ensure your payroll function is effective and accurate, while providing you with the best business outcome as well.
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