There are many questions that come up when choosing the right payroll software for small companies. Payroll is typically the most important non-core activity for many small and medium business owners who are worried about getting it right. With suitable software, getting payroll right wouldn’t be a difficult task.
From ensuring employees are paid on time to deducting the correct amount of taxes, payroll process is a critical part of running a business. There are a lot of pieces of the puzzle to consider when running payroll for a small and medium business.
Below are the easy steps to get a quick handle on the online payroll services for small and medium businesses:
Gather all Employee Information:
To start, have all the employees’ details ready. This information is needed to properly deduct taxes and also to determine any other allowances. Allowances often vary between employees, so one will need to verify that this information is as accurate and up-to-date as possible.
Knowledge of Current Tax Rates and Rules:
Being up-to-date on current tax rates, rules, and regulations is an integral part of the payroll process. Otherwise, there is a risk of penalties. Do the research or consider seeking out the help from a professional accountant to get on track and keep the business compliant.
Calculation of Employee Earnings:
It’s time to start calculating the employee’s wages. Some basic decisions must be made before like will the employees be paid weekly, biweekly, or monthly? For hourly workers, review hours logged alongside their hourly rate. For salaried workers, calculate their earnings for the given pay period. Any additional earnings like bonuses, commissions, necessary taxes, and other deductions.
Check and Make Payments to Employees:
When calculating employee wages, taxes, and deductions re-check as much as possible to avoid mistakes. Later, make the payments to the employees in the most preferable way. Some businesses prefer to pay through paper checks, while others make payment through direct deposit.
Provide Payslips to the Employees:
The payslips summarize the wages earned and deductions taken out of each employee’s income. Employers (company) needs to send these out to the employees, who will use them not only as a record of pay, but also as running record of their gross pay, TDS, EPF among others. The payslips are also helpful for the employees to file their own Income Tax Returns.
Managing payroll for a small and medium business is not an easy job. It take a lot of time. Mistakes with employee wages can significantly impact not only employee’s morale and productivity, but also the productivity of the business.
Regardless of the business’s size or industry, SumoPayroll provides the right solution to manage all the payroll needs with its compliance with government regulations, and efficiency in the process.
If you are a small business with less than 10 employees, consider using an online Free HR and Payroll software like SumoPayroll to process your payroll with ease. It will help you with the following:
- One place for managing all your employees and HR information.
- Get access to the HR and Payroll information anywhere anytime.
- Provide Employee Self Service to your employees.
- If you are in a business model where your employees do not access to computers on a day to day basis, let them use the Mobile app to access their HR data and payroll data on the mobile devices.
- An online Payroll solution will also provide a way for you to integrate bio-metric time and attendance with the payroll solution so that you dont have to worry about collecting and entering attendance data manually.