Whether you’re looking to automate payroll processing, implement direct deposit, or streamline record-keeping, utilizing solutions such as software and outsourcing to a third-party provider can help your business save time and money.
It’s also important to involve employees in your efforts to streamline payroll. This can ensure a more inclusive mindset and encourage continuous improvement in your company’s processes.
Automate Time and Attendance Tracking
When you use traditional manual methods for tracking employee time and attendance, your company is at risk of errors in the calculation process. By using automated systems for this vital task, you can mitigate data entry mistakes and ensure your employees get paid accurately every time.
Many companies employ different types of automated time and attendance tracking systems. These include web-based software that lets employees log their hours and shifts online, physical time clocks that allow employees to “punch in” and “punch out” using badges, cards, or biometric verification, and mobile apps that let employees track their time and attendance remotely.
In addition to improving accuracy and efficiency, implementing an automated system helps you comply with state and federal labor laws. For example, if your organization is not tracking employee overtime pay or break periods accurately, you could face costly lawsuits from employees seeking back wages.
Another advantage of automating this aspect of payroll processing is that it reduces the time HR and managers spend on manual timesheets and other administrative tasks. A recent study found that automated time and attendance systems can cut the time it takes to process payroll by an average of five hours per day. This frees up your team’s valuable time to focus on more pressing matters.
Outsource to a Third-Party Provider
Running payroll isn’t fun, but it’s essential for keeping your employees happy and compliant. However, a lot goes into the process, from registering for tax IDs to accurately tracking hours and calculating withholding taxes. And even small mistakes can add to expensive labor costs and fines from the IRS.
Thankfully, there are payroll services in Hawaii that can streamline your process. They can handle everything from calculating deductions, allowances, and withholding to submitting quarterly and year-end state and federal tax payments and filings. They can also help with employee onboarding, PTO accrual, and benefits administration.
When choosing a provider, check for data security protocols and customer support availability. Also, consider whether or not they charge extra for full tax filing features. Most high-quality payroll providers include this in their pricing tiers.
While entrusting your payroll to a third party may feel intimidating, it’s worth the investment because it saves time and money by freeing up your staff for more productive tasks. Plus, many providers offer a wide range of other HR and financial services that can be tailored to your unique business needs. For example, a company simplicity can provide solutions that simplify payroll calculations, filings, direct deposit, and compliance reporting. They can also help you streamline your human resource functions and provide a scalable solution that grows with your business.
Implement Direct Deposit
Payroll services that offer direct deposit can help your team members get their wages quicker and more reliably. It can also reduce the cost of paper check printing and delivery. Additionally, it can make your company more secure by avoiding mail fraud (such as “mailbox fishing”).
Using electronic payment methods to distribute payroll is a legal requirement in Hawaii. However, state laws only require using them when employees authorize them voluntarily. This allows you to pay your staff in cash, by check, direct deposit, pay cards, or debit cards.
To set up a direct deposit system, your company must work with a bank that offers ACH payments. The bank will then roll up all your direct deposits at the end of each payroll period and send them to the ACH network. Then, the ACH network will send the payments to your employees’ banks.
Before implementing direct deposit, you should ensure your payroll service has enough time to process your team’s pay records. This is because they will typically need to receive these records a few days before they can start running direct deposits. In addition, your team should be able to submit their time and attendance records via a secure online portal. Ensure that the portal has the features you and your team need and is easy to use.
Train Your Staff
As a business owner, you are responsible for paying payroll taxes for your employees. Hawaii is no exception to this rule, which requires businesses to account for state income tax, FICA taxes (Medicare and Social Security contributions), and workers’ compensation. This can be a significant burden, especially if you have many employees and pay high wages.
Training your staff can help streamline payroll processing and make the process easier for everyone involved. The more your HR team understands payroll policies, the better they can manage the workload and reduce employee misunderstandings. This can improve workplace relationships and boost the overall mood in the office.
You should also ensure your staff knows the state’s specific payroll regulations. For example, you must correctly classify employees as employees or independent contractors to determine payroll tax obligations and ensure compliance with the state’s minimum wage and overtime pay rules. This can require detailed record-keeping.
Whether you run a small local company or a global corporation, your payroll needs are incredibly important for the success of your organization. Having the right tools and support can save you valuable time so that you can focus on growing your business. A reliable payroll service provider can offer automated processing, direct deposit, and tax compliance to ensure your operations are efficient and accurate.
