Small businesses need to face payroll when hiring new workers and setting their paychecks. Payroll is your employee’s list with their entitled salaries and wages. However, the biggest issue with payroll is the amount of time dedicated to organizing it.
How do you avoid payroll mistakes and hours of fixing data and issues? You need a payroll manager to help you organize and process employee payments. This guide will expand on the question “what is a payroll manager?” to explain whether you need one today.
What Is a Payroll Manager?
A payroll manager takes in the role of monitoring your employee’s payment processes. They check payroll records and oversee calculable taxes and other deductions. You can also ask payroll managers to help you with summarization and fixing errors.
Payroll managers create strategies to find the best way to pay employees fairly. They use their communication and analytical skills to manage the performance of the payroll staff. If you lack complex payroll legislation knowledge, a payroll manager will guide you.
Here are some of the responsibilities of a payroll manager:
- Manage banking project initiatives
- Organize systems to track personnel payroll hours
- Synchronize payroll data using accounting software
- Process payments and taxes
- Update payroll information
- Calculate total gross pay
- Apply deductions and total the net pay
- Arrange payroll journal entries
- Make, store, and send payroll documents
A payroll manager will guide you with anything related to paying systems and organization. Why do you need one? Continue reading to learn the benefits of hiring one for your small business payroll.
Types of Payroll Management Systems
What is a payroll manager and what do they do exactly? Let’s take a look at the different payroll systems to help you choose the right one for your business. The various systems have certain features that may help your small business payroll:
The manual payroll system is where a payroll manager goes over the entire payroll by hand. This system is the cheapest choice, but it increases the likelihood of errors. You should only consider going with a manual payroll system if you have a few employees.
This payroll system is the best choice for businesses that want an on-site payroll manager. They will always be in the office to manage payroll and answer queries. You can go for the in-house payroll system if you have a small staff, totaling below ten employees.
With in-house payroll, you lessen security risks for giving away financial data. There is also an in-house computerized system, which is a great way to eliminate manual work. You get to use payroll software to store and organize payroll data.
This method often brings a time-saving and cost-effective alternative for your employees. An outsourced payroll system often refers to hiring a payroll manager from a different company. You have to pay a flat fee for their services, reducing the fees for employee benefits or salary.
It is also more convenient since payroll services offer online payroll solutions. You can pay outsourced payroll managers per hour or how much work gets finished. The only downside to outsourcing is that they won’t always be available when you have payroll concerns.
Signs You Need a Payroll Manager
One of the signs you need payroll management is making constant mistakes. You might make expensive mistakes or underpay your employees. Paying your employees too much may decrease your capital, ending in the negative zone.
Underpaying your employees may demotivate them to continue working in your company. When the payroll becomes more overwhelming, you and your employees will struggle to manage the mistakes. There is also the chance of creating problems with government agencies.
Another sign of hiring a payroll manager is when you waste too much time with the payroll process. You need to be consistent in checking who deserves to get paid. It could also take more time when your business and employee number grows.
Managing payroll may take priority over the HR staff’s other tasks. You won’t have enough time to go through financial wellness programs if you dedicate more of your time fixing your business payroll. Without a proper payroll strategy, your employee’s paychecks may get delayed.
Late paychecks or sloppy systems may also damage your company’s reputation. Owning outdated tax and payroll info is also a sign that you need to hire a payroll manager. You need every detail for your employee’s payroll to get the best result.
Benefits of Managing Your Small Business Payroll
Implementing proper payroll management systems and strategy greatly benefits you and your employees. A payroll manager can help you create an organized system to get the best result before payday. They can also teach you and your employees how payroll works.
You can make rules and guidelines to manage expectations and accountability when you learn more about payroll. Payroll managers have the experience and skills to notice details in your business. They will point out any mistakes or help you improve certain points for a penalty-free ending.
Payroll managers also know how to maximize your payroll process and minimize liability. They have the skills to adapt to changes in your staff and business goals. The more you tell them about your company, the more they can use that info to help you improve.
You also won’t have to suffer from errors that can cost your business plenty of cash for penalties. Payroll managers know how to keep all your data organized and fixed. This lessens the chance of do-overs or missing information.
The biggest benefit of hiring a payroll manager is the time you save. You can deal with other projects while your payroll manager will maintain and fix most of the payroll work. They will handle how to get the best way to pay employees and provide the best payroll management.
Does Your Business Need A Payroll Manager?
Now that you know the answer to what is a payroll manager, does your business need one? You don’t have to be alone when handling payroll, especially if you’re new to the business. Concentrate on other aspects of your business with a payroll manager’s help.
Are you looking for more guides that explain payroll? Consider reading our other blog posts for more helpful information.