Payroll management is an issue that is never too early to start considering. Obviously, in the early stages of your business, your payroll management will consist of paying yourself. As your business grows you will have to concern yourself with compensation for you and your employees.
Payroll management in a business that has a number of employees requires planning for the regular salaries and wages. Salaries can be computed in an hourly, daily, weekly, semi-monthly or monthly basis. There will also be payments to subcontractors for technical and sales-related services that you need to consider. You will eventually become too busy to do it all yourself and you will need the extra help of payroll professionals.
However, before you get to the stage where you need to hire additional help, it is a wise strategic move to think about your payroll management needs and plan accordingly. You will need to consider and understand the following payroll concerns :
- Fixed Regular Salary versus Hourly/Daily Wage
- Overtime Pay and Computations
- Bonuses and Commissions
- Compensation Package – vacation pay, time off, sick days, holidays
- Employee Benefits – health care, dental plan, pension and retirement
- Insurance – Disability and Life
- Payroll Taxes
- Payroll Management Issues
A common aspect of payroll management that gets overlooked is payroll taxes. No matter what you do, you can’t avoid these for either yourself or your employees. The employer’s portion of payroll taxes will cost you money. Effective payroll management takes this expense into consideration from the very start.
Payroll For Start-Up Business
If you are starting a business, payroll management is an issue you need to think about before you have employees. Even if the payroll roster is just you, your business will still have payroll expenses. It is never too early to start thinking strategically about your payroll management. You should be formulating a plan for handling employees, subcontractors and the expenses that come along with them, long before you actually need them.
In-House Payroll or Outsource?
Generally, as a business owner, you should spend your time to manage your business clients in order to generate more sales and revenues. However, managing your employees is also one of your essential roles which include payroll management. Sometimes, business owners tend to focus on generating more sales leads than people management. Hence, payroll is delegated to an in-house payroll accounting expert who can focus on this task more. Another way is to adopt a payroll software solution which covers the entire payroll process. Payroll outsourcing is also another means to handle the payroll concerns of your business. Anyone of these payroll management methods can help you to worry less and concentrate more on important business management concerns.