Payroll can be a stressful task at the best of times, but especially at the end of the year. Find out how you can reduce payroll pain with these helpful tips.
Payroll isn’t a task many people relish, especially at year end, and it’s understandable why. It can be stressful and complicated, with unnoticed mistakes made months ago playing havoc with your calculations. However, it needs to be done, and ideally, you’ll want to find the least-painful way in which to do it.
If you’re not sure how a painless payroll is even possible, we’ve got a few tips that might help. Read on to find out how you can make your year-end payroll as easy and as smooth as possible.
Assess your payments throughout the year
Accidentally paying your employees too much can cause a lot of problems. In addition to costing you, the lost money is not always easy to find, meaning you may end up with an inaccurate picture of your finances at year end. The key is to check and double check each pay slip throughout the year to catch it before it happens.
Unfortunately, most employees won’t report an overpayment unless it is significant. On average, workers would have to be overpaid by almost £385 before they said anything. Even small overpayments can add up over time, especially if it’s an error happening throughout your organisation.
What’s more, 49 per cent of people would start looking for a new job after just two problems with their pay slip, so it’s not enough just to catch the errors. If they’re happening regularly, you need to chase down the underlying cause and fix it before it gets out of hand.
Utilise unified solutions
If you can make sure you’re as accurate as possible throughout the year, you’ll find a lot of your year-end payroll woes disappear. One of the best ways to do this is to use a solution that integrates both your timekeeping and your payroll. One study found that businesses that do this are able to reduce their error rates to just two per cent.
This also means you won’t have to worry about pulling data from a variety of sources, as the majority of it will be found in a single location. This will make your task at the end of the year a lot easier, in addition to enabling you to trust your data a lot more as your overall accuracy will have improved.
Outsource (and make sure you’re happy with your provider)
The easiest method is simply to pay another firm to sort out your payroll for you. However, you need to make sure you’re happy with the company you choose, and that they’re keeping up with technology as much as possible. As tech improves, businesses are becoming less satisfied with their payroll providers.
Research from Ernst and Young found that in 2015, businesses rated their payroll providers an average of 3.69 out of five. By 2017, that figure had fallen to 3.39. You need to make sure your provider gives you everything you need and utilises the latest technology to make sure everything is efficient and accurate.
At Brookson, we can provide you with a bespoke solution that meets all your needs. If you’re curious, why not get in touch for a free consultation?