Owning a recruiting firm often requires wearing many different hats. You are busy acquiring new clients, recruiting the best candidates for your clients’ open positions, managing staff and contract employees, plus employee payroll. There are also unavoidable “emergencies” you need to handle immediately.
Some tasks inevitably get put on the back burner for a few days. However, employee payroll can never be postponed.
Payroll tasks are time-consuming and complex. Larger firms have an entire department dedicated to complete these time-sensitive documents and filings. If you are a small recruiting firm, you probably don’t have a dedicated department. You have to think outside the box. Create a streamlined process that maximizes efficiency in completing employee payroll tasks.
Here are 5 simple ways to keep on top of your payroll responsibilities:
1. Maintain Consistency
Your recruiting firm probably manages its own payroll plus employee payroll for client placements. These requirements vary from state to state. Different employee-types, state-specific laws and regulatory mandates make the paperwork associated with payroll tasks hard to handle. Still, payroll must be processed the same way every pay period. Taxes must be filed in a timely manner, and revisions to tax information made on behalf of employees. This requires both speed and efficiency for accurate payroll processing.
Maintain consistency when filing all employee paperwork. This makes cross-referencing easy and intuitive. Keep employee payroll forms organized by state, category, date and employee number for easy future reference. It’s also imperative to develop and maintain a consistent method of filing and retrieving all employee paperwork.
2. Develop a System for Accuracy Checks
Payroll management requires in-depth knowledge of all forms required by state, federal and insurance agencies. These forms provide accurate tax and benefit information for both employees and employers. Frequent updates and changes to these documents increases the chance for human error, and incorrect payroll processing.
Make regular accuracy checks a priority. Review your employee document revisions every pay quarter, identify any discrepancies, and correct any errors. Take a second look to make sure that important tax document updates and changes in payroll rate are properly revised.
Handling a client complaint or searching for a document error can be a giant drain on time and resources. The time devoted to regular double-checks will save you time (and frustration) in the future.
3. Proper Forms
Make sure the people who handle your employee payroll tasks have the most up-to-date forms and filing requirements. Most forms require routine updates. Keep track of all changes, and implement a system to verify updated information, and notify the employee or client when updates are made.
4. Laws & Regulatory Mandates
Processing payroll includes variable factors that complicate the task:
• Employee benefits
• Employee termination
You must accurately comply with specific state laws and regulations for each of these factors. Some states require companies to provide employees with their final paycheck on the day they’re terminated, while others do not. Income tax laws and benefits regulations may vary widely based on the states you serve.
Your federal payroll tax responsibilities include both employee payroll withholdings as well as paying the employer’s share of Social Security and Medicare taxes under the Federal Insurance Contributions Act (FICA).
5. Outsource Payroll Tasks
Payroll processing is far more complex than simply printing pay checks each pay period. Time-sensitive filings, an in-depth understanding of state and federal tax requirements, and efficient and accurate updates are required . Any payroll error frustrates employees and negatively affects client relationships. Major errors can have serious consequences with the IRS.
Payroll tasks are very time consuming for a recruiting firm. They often steal time and resources away from generating leads and growing your business. Successful agencies focus on increasing top-line revenue, and eliminating distractions
Outsourcing payroll tasks is a great way to streamline your administrative operations, while keeping your attention focused on your core business – Recruiting.
Let the professionals at Headcount take you throw the benefits of Outsourcing Employee Payroll. Set up a free consultation today.