Payroll (monthly, bi-monthly or weekly) is important to every employee. I am sure you have heard a lot of myths about the handling of the payroll process. The truth is, if the process is handled wrongly, these myths can become truths. So, read on to discover 3 myths about the payroll process that plagues business and the solutions to them,to find more about payroll process click here
Myth 1: Taxes must be done in-house for accuracy in filing taxes and for employers to be completely aware.
The truth: with each passing year, there are new tax expectations, new tax forms, new tax regulations and more complex tax issues that need to be handled. Hence, this is added workload for the employer.
The best option is for an employer to outsource this task rather than spending the time to update his employees’ knowledge about new tax rules to meet the expectations of the government. Payroll service providers are not only well updated on new tax laws; they can also explain the terms to their clients in a simplified manner. Read more about new tax laws at:https://www.law.nyu.edu/taxlawreview
To ensure a smooth tax season, payroll partners are always in constant communication with government officials and employers, ensure the accurate and prompt completion of all paperwork, and hand the right forms to employees. The truth is, payroll should be the simplest part of running a business, but it can only be easy provided the employer outsources it. The time, energy and stress companies spend in performing their payroll in-house can be utilized on offering better services or products to their clients.
Myth 2: It is necessary for a business to track sick days, PTO and accruals
The truth: it is not necessary to track accruals to the exact hour.
Based on tenure, accruals can be throughout the year, or the beginning of the year, when the employee wants an approval. The payroll process can be made more complex when companies track their employees’ days away from the office, then, report it to payroll. Efficient companies have been able to put up a standard routine for tracking accruals. Even some such as Groupon and Netflix are no longer tracking accruals.
While we don’t encourage regular absenteeism from employees, but so long they work hard for the growth of the company and themselves, it may not be necessary to track accruals even when they are absent on some few occasions. Don’t you think you will save time employees’ away time from the office such as vacation day, sick day, and even each doctor’s appointment?
If it important that the company has to keep a formal Accrual process, it has to be done in an efficient manner. The payroll team or the outsourced payroll provider can make use of many online accrual processing tools, these tools are also simple to handle.
Myth 3: It is necessary to fill timesheets so that employees can be compensated
The truth: fillable paper timesheets are now archaic. Apart from being an archaic process, fillable paper timesheets are also not accurate because most times, there are discrepancies between the tracking by the employee and the payroll accountants.
Hence, online timesheets are a much better option. At the moment, there are many fast, easy to manage, easy to calculate online payroll tools that can be used by payroll providers.