Payroll challenges are a fact of small-business ownership. Avoid making a costly mistake by embracing these trends.
Each year, small business owners are inundated with billions of dollars’ worth of IRS penalties related to payroll errors. The fact is most business owners don’t know how to do their own payroll. The longer you ignore payroll, the harder it will be to keep the financial side of your business on an even keel.
Utilizing the power of modern payroll systems is one step in the right direction when trying to avoid these costly problems. Cloud-based programs make tax deductions and paying each employee much easier.
Keeping up with small business payroll trends is essential to the overall success of your business. Read below to find out more about payroll trends you need to watch out for in 2020. You can also learn more by visiting this page.
1. Modern businesses are focusing on employee financial wellness
Keeping your team members happy and engaged is important. Without this, you will struggle to keep valued team members loyal. Modern employees want to feel like they work for a company that actually cares about them. This is why one of the hottest trends in the world of payroll/employee finance is a focus on financial wellness.
Business owners realize that simply turning over a paycheck to their employees isn’t enough. Modern companies are providing their team members with information about how to save and invest their money. Providing your team with helpful budgeting and investing tips is a great way to get them on good financial footing. The time and energy you invest in devising helpful financial tips for your staff will be worth it.
2. The rise of gig workers
Being able to fill a temporary need for more manpower is something business owners have struggled with for years. In the past, this need would be filled by a staffing agency and their pool of talent. While businesses are still using staffing agencies, many of them are starting to gravitate towards the power of gig workers. A gig worker is an independent contractor that will have a limited shelf-life with a particular company.
These workers are easy to hire, and they can save you money as well. You need to be careful with how you handle the taxes for these workers. Instead of making mistakes due to your lack of payroll experience, you should outsource this important job to professionals. With this professional help, you can avoid problems with the IRS, which is always a good thing.
3. Automated payroll is beneficial
The days of business owners staying up all night to handle their payroll is coming to an end. Not only is manually handling payroll inefficient, but it can also lead to a number of errors. Instead of dealing with the problems this can cause, you need to consider using an automated payroll system.
These systems will require you to invest in timeclock software that your team can use. With these 2 programs in place, you can forget about handling payroll manually forever. Consulting with an IT professional is a good idea when trying to get this software in place.
4. A new approach to employee performance evaluations
Keeping your team productive and motivated is probably one of your main goals. One of the best ways to track how well a team member is doing with the work they are assigned is performing routine evaluations. Instead of making these evaluations once a year event, many entrepreneurs are now performing these evaluations monthly. By doing this, you are able to find and address productivity issues in real-time. Not only does this help your business, but it can also help employees see where improvements need to be made.
It’s time to act
By updating your payroll methods, you can make your business more efficient. Allowing professionals to help with the selection and implementation of new technology is a great way to avoid mistakes.