So, you’ve got the payroll provider you need, but setting it all up and using it to its full capabilities has become a more complex task than originally imagined. Your new software can do everything you need from compliance, new business insights, automation, and complete human capital management. This is all great, but how do you get it all started? Here are some payroll tips to get the ball rolling:
1. Determine salary vs hourly
Make sure you have a system in place for both employee types. Employers generally find putting employees on salaries is easier to manage and can help with consistency across the board. If you do have hourly employees, make sure to keep track of their time and compensation.
2. Determine pay periods
Employers should determine a pay period for all their employees. The most common types of pay periods are weekly, bi-weekly, or monthly.
3. Take care of paperwork
Make sure you have an employer identification number (EIN), commonly referred to as an Employer Tax ID. You need this to report taxes and other documents to the IRS. If you don’t yet have an Ein, you can apply for one online or contact the IRS.
Have new employees fill out the Federal Income Tax Withholding Form W-4. Make sure to keep these on file so you can withhold the correct federal income tax from their pay.
4. Pick the right software
Do your research on different payroll and human capital management systems to get a feel of what will be right for you and best fit your needs. Some solutions offer implementation consultants that can help you every step of the way and really get going on the right foot.
5. Stay Organized
Different laws require you to keep documents for specific periods of time. For example, W-4 forms must be kept on file for all active employees and for at least 3 years after employees are terminated. Keep record of all your files and know which ones you must retain.
When in doubt, dial ADP123!
If you need any help from basic questions to complex benefits issues, ADP123 is for you. Offering:
- Complete Hiring Process and Employee Changes; New Hires, Term Hires, Changes to employment Status, direct deposits, garnishments, deductions, etc.
- Adhere to Policies and Procedures to meet Client Specifications
- Provide Comprehensive Reporting for strategic decisions
- General Ledger integration
- Benefits Administration
- Time & Attendance administration: collection of hours, PTO tracking, reporting