Payroll Best Practices
Yesterday’s expectations of payroll professionals are almost invalidated by the fast paced world of changes we see today. Just when you think you know what you need to do, they throw a curve-ball at you and expect you to quickly jump into gear and make the catch. Will you? Fortunately for us payroll professionals there are still a few best practices we can live by to help us to not only stay in the game, but maybe even actually win it!
- Choose your software wisely. With so many options available it can be confusing and overwhelming. Do you really know what you’re getting? Did you vet the company enough? Will their system be able to keep up with the ever-changing demands of not only your organization, but also with the multitude of payroll laws that sometimes seem to change overnight? When reviewing software remember that an all-in-one is the best option if you want a seamless user experience. A lot can be said for fully integrated time and attendance, payroll, tax processing/reporting, and HRIS options that save you time, and can ultimately save you money. In addition, the customer service experience is key. Are you assigned to a designated customer service representative or a team? Is there one subject matter expert that will assist you with all areas of the system, or is the customer service team silo’d by their area of expertise? Lastly, have they shown you in the system that they can check all the boxes on your list of must-haves? Remember, until you see what the system can do, you really don’t know.
- Stay in compliance. Often we think we know how something should work only to find out that it changed two years ago. With the rapidly changing world we live in, training is key if you want to stay in-the-know and remain compliant. That one-hour webinar or two-hour seminar are definitely worth taking the time to attend if it’s going to keep you in compliance. Do your research, search out help if you’re not sure. Nothing is more costly (or can damage your reputation worse) than litigation…or a Department of Labor (DOL) audit.
- Perform regular audits. Auditing on a regular basis ensures that if there is an issue, you’re not only going to catch it, but you’re going to catch it fast! A thorough review of each payroll processing, running reports designed to verify payroll entries on a regular basis, and having a second pair of eyes to review data entry can go a long way in ensuring that your payroll is always in tip-top shape. Not only will your employees thank you for your attention to detail and thoroughness, but you will thank yourself!
- Don’t wait to make corrections! This goes along with performing regular audits. Oftentimes individuals will wait until the end of the quarter or the end of the year to make adjustments due to time constraints. Unfortunately this usually results in additional errors or expensive payroll adjustments. No one is perfect, but if you didn’t get it right the first time, get it right the second time by fixing it right away.
- Hire the right people. Not everyone is a payroll professional. Not everyone loves payroll. I’ve actually met people who truly LOVE payroll, and while I truly enjoy what I do, I’m not sure that even I can say I LOVE payroll. However, more power to those who do! Seriously, though, all jobs aren’t made for all people. One person’s strengths can easily be the next person’s weakness so make sure you hire the right professional for this role. When speaking with references look for words like “detail-oriented,” “accurate,” “organized,” “honest,” “trustworthy,” “dependable,” and “service-driven.” Conduct background checks to ensure that the individual is the right fit for such a sensitive role. Don’t hire out of desperation – wait for that perfect match!
- Be willing to make changes. Being open to accepting – no, embracing – change is necessary for any good payroll professional/payroll department. Deadlines are going to be pushed, processes may need to be adjusted, systems in place for years may need to be evaluated for improvement. This is a good thing! Be positive and look for ways to proactively streamline processes and find efficiencies where they may be lacking. Not only will you stay ahead of the curve, but you will strengthen your relationships within the organization you are a part of and show the value your role brings to the table!