One of the most time-consuming and labor-intensive jobs accountants have is keeping the payroll for their client's companies. This means that the payroll software the client uses is crucial. A software is needed that takes the least amount of time and is the most efficient, for both you and the client.
As cloud technology and regulatory standards continue to evolve, payroll software changes every year. This can make the client's job of choosing a payroll service difficult. Not only do they need to know which payroll software is the best, but also need to understand how to use payroll software effectively for their business. As the accountant for a client handling their payroll, you can make their job and yours so much easier by suggesting just the right payroll software.
But what you need also is to understand, for your own knowledge, the best digital payroll practices for 2018. MoneyThumb has listed those below:
1. Abandon the paper trail for digital
Did you know that companies should keep all records associated with employee payroll and taxes for at least three years? Even at a small company, that’s a lot of paper. With the right payroll software in place, your accounting client can ditch all those filing cabinets in lieu of digital documentation and paperless payroll. It’s not only space-effective, it’s more accurate and searchable.
2. Direct employees to direct deposit
According to NACHA, 82 percent of U.S. employees are paid via direct deposit. And of the few who aren’t, nearly are all aware of the existence of the service. This is good news for accountants handling payroll for clients' business who have employees. It’s another step toward a paperless HR process that gives everyone involved a smoother experience. If they aren’t already, encourage your clients with employees to go the direct deposit route.
3. Be transparent
Payroll shouldn’t be a mystery, but too often your clients feel uncomfortable talking about it. This leads to a lot of unanswered questions and problems. Transparency about the payroll process is key to combatting this issue and making sure everyone at your clients' organizations has a good understanding of their responsibilities and yours. As it automates processes, payroll software makes it easier for clients to put responsibilities into writing.
4. But still, be confidential
Payroll transparency can do a great deal of good for your accounting clients' employees’ relationship with their human resources department. At the same time, individual employee’s salaries, Social Security numbers, and banking information should always remain confidential. Payroll software organizes this information into a digital database, making it much more difficult to compromise that confidentiality.
5. Classify correctly
The Department of Labor has been tracking an increase in employee classification litigation for the past several years. Indeed, the difference between exempt and nonexempt employees can occasionally confuse even the most seasoned payroll veteran. This gets particularly dangerous when nonexempt employees are treated as exempt and not given the overtime pay to which they are entitled. Using payroll software automates the process of keeping track of employee classification and makes it easier than ever to record hours.
6. Tax on time
As much as they all dread tax season, your clients' employees are also on the lookout for important tax information in order to get their refund process underway. This is particularly important for independent contractors whose 1099s can get lost in the shuffle of full-time employees’ paperwork. Your clients can make sure everyone gets their paperwork on time by automating the system or even going paperless with payroll software.
7. Get up to speed
Every time a new employee is hired by your accounting client's company so does a mountain of paperwork. It can take time to get new team members up to speed on the various HR processes at the clients' organization, but payroll software can help. Using your payroll tools, you can put stricter guidelines and more automation in place, saving time and effort.
Hopefully, these tips will help you better handle your accounting clients' payroll needs. To help even further, MoneyThumb would like to direct you to a free download we discovered, courtesy of Apex Capital Management. The free download is titled, 5 Considerations When Purchasing Payroll Software. This is a guide that will help you and that you can also pass along to your accounting clients whose payroll you handle.
Inside you'll discover:
- The latest changes and trends in payroll technology
- How recent changes have impacted the delivery of payroll
- Security implications that could make or break your business
- How to evaluate the ongoing support your provider might offer
Please share this blog post with your accounting peers on social media so that they too can take advantage of MoneyThumb's best digital accounting practices for 2018 and this great free download.
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