The 5 Payroll Pests: Distributing Paychecks
Paying your employees. It seems like a simple concept….it’s anything but simple. If you’re manually processing payroll or using a system that doesn’t integrate with your time tracking, then you have an even bigger uphill battle. In our five-part series, we’re going to discuss the five payroll pests that are eating up your time while showing you some ways to streamline payroll processing. If you missed part one, we talked about tax filings and how much time it takes to make sure your company is compliant. Next up: distributing paychecks.
Creating and distributing paychecks each pay period is probably one of the most time consuming tasks you have to tackle. Between creating the checks by either hand writing or printing them, and distributing them or mailing them to your employees, the process can take hours each week even if you have a team of people helping out. And let’s not even get started on payroll errors.
Let’s go back to creating the checks. That is not an easy task in itself. Depending on what type of process you’re using, this could entail any or all of the following:
- Reviewing time cards to determine how much each employee is paid.
- Making sure the time cards are accurate and correcting any errors found.
- Calculating the taxes that need to be deducted.
- Determining deductions for items like retirement plans and health benefits.
Now, think about this: For every one timesheet, there are at least four tasks that have to be completed. This includes calculations, edits, extracting PTO and keying that data into your system (if you’re using one), and finally extracting the hours out and keying those into process that paycheck. Let’s face it, you don’t really have the time to spend on these tasks, but you are required to in order to pay your employees. So there has to be a better way, right?
Stop Wasting Time on Distributing Paychecks
You can save time and streamline your payroll process by setting up direct deposit. Once you complete your payroll, you can then tell your bank or payroll provider how much money to send directly to each employee’s bank account. You hear that? That’s the sound of time saved.
Using a payroll provider that includes direct deposit services will make your life so much easier because the technology does the work for you. Since pay rates are stored in the system, it already knows exactly how much each employee should make. And with direct deposit, the system will send that pay information to each employee’s bank without you having to enter any additional information.
Do you have employees who don’t use a bank? No problem, that’s where paycards come into play. A paycard works just like a debit card, but money can be reloaded directly to it each pay period. Employees can use it to make purchases, pay bills, as well as have access to transaction and balance information.
If you’re looking to take your company 100% direct deposit, make sure you follow federal and state direct deposit laws. There may be guidelines in place that prevent you from making direct deposit mandatory.
For every one timesheet, there are at least four tasks that have to be completed.
Choose the Right Payroll Provider
Thinking about using a payroll provider or switching to a different one? There are many ways to ensure the provider you choose is the best for your company. Here are some criteria to consider when choosing the right payroll provider:
- Multiple Pay Options - includes direct deposit and paycards.
- Plays Well With Others - look for a solution that integrates with your accounting package and retirement plans.
- Garnishments - look for a system that can handle the calculations, deductions, and payments via paper check or electronic funds transfer.
- Total Control - you should be able to control how gross-to-net is calculated and be able to correct any errors prior to payroll processing.
- The Numbers Game - you’ll also want instant access to reports once your payroll has been submitted.
Now is a great time to switch payroll providers with a mid-year conversion. It’s a lot easier than you think!
Stay tuned for part three in our five-part series about Payroll Pests!
How APS Can Help
APS provides payroll and tax compliance services to businesses all over the nation. Our Payroll solution has been recognized by G2 Crowd as a High Performer since 2014, and was recently recognized as the 2017 Best Solution for HR and Administrative Teams. With consistent top rankings for Ease of Use, Support, and User Adoption, you can be assured that the APS Payroll solution experts are dedicated to making sure that your payroll tasks and processes are as organized and easy to use as possible. Schedule a demo today to learn more about our entire platform of unified solutions!
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