Payroll is so central to your business. When your payroll system is functioning as it should, it ensures the well-earned money gets to the people who keep your business running – correctly, and on time.
Any hiccups with payroll, and you’re sure to hear about them right away.
And you don’t want your team to be impacted by late or incorrect payroll.
So, it’s critical that you get your payroll running optimally.
Keen to make 2023 the year when you ace this? CornerStone Bookkeeping can help.
7 Top Tips to Help You Nail Your Payroll In 2023
Why Is It So Crucial To Get Payroll Right?
Payroll is a key part of doing accounting in business. Why? Well, there are two very important reasons:
You’re legally required to get it right for tax purposes
You need to pay your employees correctly if you want to hang on to them!
It may seem like a big deal (and to be honest, it is). But, if you get payroll sorted with smart software (and a little support from experts who know all the rules – and all the tricks), your payroll will essentially run in the background with just the occasional check-in from you.
Let’s look into how you can make that happen.
How To Do Payroll Better
You may do payroll operations yourself in-house, you may have a member of staff manage them, or perhaps you outsource them to an accountant or payroll company. Either way, you’re responsible for keeping accurate records and filing them with the IRD.
You can make life easier for yourself by choosing the right payroll software and setting it up properly so that it talks to your accounting system. Never fear – help is at hand to make sure this is done properly. Here at CornerStone Bookkeeping, we specialise in a number of different payroll softwares – and making life easier for small business owners (the two go hand in hand!).
We are available any time to help ensure your payroll software is set up so that it works for you, your staff – and the tax man!
Our 7 Top Tips For Keeping On Top Of Payroll
1: Get to know your software
Having the right software is essential, and you need to know how to use it! Whichever system you choose, it needs to be set up properly to manage your payroll. If you aren’t sure how to do that, we can assist! At CornerStone, we’re payroll experts and can help you become familiar with your chosen system inside and out.
2: Meet your obligations
It is an IRD requirement that you file employment information every time you pay your employees. This is called Payday Filing and should include the pay period, who you are paying, what you are paying each individual, and any deductions. Some payroll systems streamline this process by automatically sending your employee information to IRD when you complete a pay run. Other systems may require you to load this info manually through IRD’s online portal.
You also need to make sure that you are keeping up with PAYE, Kiwisaver and any other deduction payments that IRD require you to make.
3: Keep accurate records
As an employer, another of your obligations is keeping accurate records. You want to get all the important information on every single employee into your system (name, address, IRD number, deductions, salary, hours, leave, sick days…) Enter these details into your payroll system against each employee’s record and you’ll be able to lay your hands on the info when you need it.
4: Don’t fall behind
Set aside a regular time every pay period to go over your payrun. That way, you’ll have all the info ready to go and pay your employees on time. This is also a good time to update your payroll information and file any paper records.
5: Keep a tidy archive
You must keep accurate payroll records on hand for seven years. Your payroll system will help do some of this for you, but you may need to keep some paper archives too. If you do have paper records, make sure they are filed tidily and that they are accessible in case you need to refer back to something.
6: Utilise your software
There are plenty of things that payroll software can do to make your life easier. They are:
● Give your employees limited access to update their details, check their leave balances and access payslips
● Set weekly, monthly, fortnight or twice monthly pay calendars
● Assign multiple payrates to reflect the work your employees do
● Utilise built in timesheet functions
● Track and manage employee leave entitlements and requests
● Easy adjustment for tax codes and things like maternity leave
● Reimburse employee expenses at the same time you do payroll
● Seamlessly share info with your accountant or bookkeeper
7: Outsource the job
There’s a lot that goes into getting payroll right. And as a busy business owner, you might not have the time, energy or motivation to do all of that every pay cycle. So don’t! Instead, outsource the entire job to a payroll expert like the team at CornerStone. We’ll make sure your payroll is done on time and correctly, every time. Plus, we are the masters of keeping tidy records and are always up to date with the latest IRD regulations.
Want Payroll Support?
At CornerStone, our goal is to provide a high-quality bookkeeping service so our clients can achieve financial success. Get your payroll sorted with expert support you can trust. Call me, Joanna on 021 578 450, or email accounts@cornerstonebookkeeping.co.nz – and let’s talk.