The Rules of Thumb blog from MoneyThumb strives to inform and educate our readers. One thing we haven't discussed as of yet on our blog is the payroll responsibilities and functions of small businesses. So today we will remedy that issue by providing the following helpful information.
If you are a small business owner with employees, you may be wondering what the main payroll issues are that you will be facing come 2019. A recent survey, conducted in recognition of National Payroll Week, which was September 3-7, 2018, Paychex, Inc. polled 500 randomly selected business owners who had 2-500 employees to find out what changes they plan to make to their payroll processes in the next 12 months.
The study revealed the following five payroll priorities:
- Offering direct deposit – 27%
- Providing electronic paystubs – 15%
- Offering smartphone access to payroll information – 11%
- Extending daily pay options – 10%
- Outsourcing payroll – 10%
“In today’s digital world, with the ability to buy goods and services with a simple tap on a mobile device, employees value – and increasingly expect – fast and easy access to payroll funds,” says Martin Mucci, Paychex president, and CEO. “Delivering payday efficiency, direct deposit is a recruiting asset that business owners can use to help attract top talent. It also has the potential to serve as a financial fitness tool, enabling employees to save automatically.”
As you can see, the most important issue facing small business owners with employees in the coming year will be the ability to offer direct deposit of paychecks to all of your employees. Coming in second is providing electronic paystubs, which of course goes hand in hand with direct deposit.
Direct Deposit is easier for everyone, and as the survey shows, preferred by both the small business owner and the employee, so it's a true win-win situation. We can all agree that from the standpoint of a small business owner with employees, in addition to eliminating the cost of paper checks, direct deposit can reduce the overall time spent on payroll, freeing your the human resources department and payroll staff of your small business to focus on other functions. For the employee receiving their check via direct deposit, they are able to access the money they earned immediately upon receiving it into their bank account.
Most of you probably are like us at the Rules of Thumb blog, thinking that direct deposit is something rather new. However, the truth is very different. In this article from Christian Science Monitor, Alfred Beausey, Manager of Payroll Operations at Xerox, stated that direct deposit has been in effect there since the mid-1970s. About 85 percent of the company's 60,000 employees have their pay ``wired'' into more than 7,000 banks.
So if you are a small business owner who is new to direct deposit, you can rest assured that this method of paying your employees is certainly tried and true. Another tried and true way that small business owners can improve their bottom line is by using the best PDF financial file converters on the market. Quickly and seamless convert your small business bank statements using these MoneyThumb tools will save your small business so much time and headaches.