Payroll plays an important role in a business. You have employees that you must pay. The payroll process can take a lot of time. Whether you do the process alone, employ someone to conduct the payroll services, or do payroll outsourcing, you need to have the payroll procedures documented. This will help in making the process shorter and ensuring uniformity every time employees are paid. The payroll procedure should also create room for correcting any errors before employees are paid.
Steps to writing a payroll procedure.
1. Write down employee information.
Write down all the employees you have. Include their official names, addresses, and other personal details. Take your time to make sure you fill correct information.
2. Write how employees submit time worked.
You should have a documented description of how employees submit the number of hours worked. Do they submit it online or write a report to the human resource? This will help the person conducting the payroll service to know where he/she will get this information when coming up with the payroll. If the employees are paid monthly, not according to the numbers worked, do not forget to mention. Learn more about effective methods to efficiently manage the success of Business at http://punkrockpayroll.com/5-effective-methods
3. Write as you go through the actions.
Go through the payroll process as you document the payroll procedure. This ensures accuracy and that no step is skipped.
4. Write how to calculate employee wages.
If you use the manual system you should lay out how to calculate the pay for the number of hours worked. Be sure to include the rates for working normal hours and overtime. If you are using a software to process payroll, then write down the steps needed to be taken by the employee so as to qualify for some payment.
5. Write down the payment schedule.
How often the payroll is processed should be listed down. Are employees paid weekly, fortnightly or monthly?
6. Payment adjustments
Write down the process in which the employee needs to go through so that the payment adjustments can be noted. This could include commissions, bonuses, deductions and raises. Ensure to mention where they take this information so that the one performing the payroll process would know where to get it.
7. Printing of quenches.
After the employee has entered all the payroll information into the server describe the process of printing the payroll quenches. If the business uses the manual system and the employee has given this information to the relevant personnel, describe how the payroll service provider should get these payroll records and how he/she will come up with the payroll quenches. learn more Lead Management and Key Personnel Positions in a Business by clicking here
8. Backup your records.
Maintain these records. It is important to maintain employee payment records such as time cards, tax payments etc for more than 3three years. There are many software available today that help in backup of data. Write down how employees should handle filing these records. Also, layout where these records are stored.
Ask the person performing the payroll service to go through the above steps to ensure you have not left out anything. Allow feedback from him/her and work on it to ensure the procedure is correct. Write down the final format.
If the procedure is properly documented and followed, performing payroll services will be very easy and fast.