Avoid the Common Payroll Management Pitfalls With Staffing Software
Staffing firms are under extreme pressure to maintain accurate payroll management records - from ensuring employee paychecks are received on time, to accurately accounting for overtime hours, to classifying workers correctly, to staying current with 9,000 different local payroll tax jurisdictions.
According to the IRS, 40% of small businesses pay an average of $845 a year in payroll penalties for late or incorrect tax filings. On top of that, payroll mistakes can damage valuable relationships with both clients and employees.
Payroll management is no doubt a complicated task. But with staffing software, staffing firms can focus less on micro-managing their payroll or taxes, and more on the strategic aspects of growing their business.
Below, we've addressed how staffing software can empower staffing firms to avoid some of the most common payroll pitfalls.
Keeping up with quickly evolving federal, state and local tax laws and regulations is becoming a full time job. Is there an easier way to keep up with the latest regulations?
Staffing software can come equipped with monthly electronic tax updates. These built-in updates automatically upgrade payroll with the newest tax regulations. This way, you're left to oversee payroll management rather than memorize complicated tax rules.
My staffing firm works with clients and employees in multiple states. How can I efficiently manage payroll while dealing with different federal IDs?
Look for a back office software solution with a built-in functionality to manage multiple federal IDs. Let software do the work for you.
Like all staffing firms, I need to ensure the utmost accuracy when it comes to payroll management. How can I eliminate errors?
Staffing software can tightly control the modification of past transactions, thus eliminating the risk of reporting mistakes. Look for a solution that can reconcile your checkbook register, as well.
I'm finding myself micro-managing each individual paycheck my staffing firm distributes. Is there any hope for me?
Staffing software can distribute accurate paychecks, direct deposits or pay cards to employees for you. Trade in your micro-managing tasks to focus on payroll management.
Automation is great, but what if I need to make a manual modification to a paycheck?
Ensure the software solution you choose allows for easy manual modifications with an audit trail when necessary. Look for software that allows quick overrides or corrections of transactions, deductions or hours of pay.
I'd like the ability to manage payroll online. Can this easily be achieved?
Web browser-based staffing software solutions can provide you with quick and easy online access to manage payroll and other important yet time-consuming functions. Not only that, but your clients can view their invoices online as well. Look for a solution that links directly to your own website to avoid any confusion of an unfamiliar site.
To learn more about how software solutions can help you avoid the common payroll pitfalls, request a free staffing software demo today.
