The payroll function is not only paying your employees, is also one of the functions that can make your company bigger and strong no matter the situation.
Statistics reveal that the 60% of small businesses manage their payroll in-house and the other 40% outsource the payroll. However the size of your business, we must have an organized and clear payroll system, for avoid penalties and keep our employees paid on time.
The following steps can make you understand briefly, how you can improve your payroll.
Keep your workers classified
Classifying your workers, furthermore than the task they made, classify them as employees by the type of contract they have; independent contractors, full-time employees or interns. Anyway in your country there is a tax guide specifying how they should be classified.
Set the periods in which your employees are paid
The periods of time your workers are paid it is important and makes the payroll easier; deciding if your employees are paid monthly, weekly or bi-weekly is appropriate for your business.
Determining how much your employees are paid keeps everything consistent, decides if your employees should be salaried or paid hourly is a long-term benefit. In the case your employees are paid hourly, you will need a system for keep track the time and compensation.
Give ID numbers to your employees
ID numbers are useful for process taxes and make the identification of every worker easier. Nowadays most entities and businesses have ID numbers. The tax service of your country can provide ID numbers and guide you in the process.
Additional benefits instead of wage raises
To give additional benefits to your employees will simplify the tax paperwork. Additional benefits like; additional insurances, stipend for childcare, new objects are some tax-free options you can choose.
Plan a budget
A budget of wages and taxes is essential for avoid unemployment taxes, and keep all the expenses updated. Planning a budget will help you in a long-term way.
Simplify the payroll function acquiring an outsourced payroll service
Stop spending a lot of time and money managing the payroll function, with an outsourced payroll service like payroll in chile.
To choose an outsourced payroll service is better, because we avoid investing in training and payroll software, and we do not have to be under the stress of all the keep in-house functions.
So why not let all the payroll issues with an outsourced payroll service and focus on your business?
Improving the payroll function requires organization, patience and communication, with this steps your business will be more efficient.