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7 Ways Payroll Managers Can Operate More Efficiently

September 8, 2022 - minute read


It’s not easy being a payroll manager. 

Spearheading an employer’s payroll management services is often time-consuming and stressful. When there are gaps in your payroll processing system, it translates to tense, beat-the-clock marathons at the end of every pay period. 

In fact, one of the biggest—yet simplest—issues that HR professionals face is ensuring accurate, timely payroll processing. Since manual work is often required when processing payroll, it takes time away from HR professionals; valuable time that could be spent on other initiatives. This also leaves much more room for human error.

The good news? There are steps you can take to smooth out the hitches and holdups in your payroll management process.

Consider these seven ways payroll managers can operate more efficiently.

Consider these seven ways payroll managers can operate more efficiently.

  1. Review Your Payroll Processing System and Identify Hurdles

Chances are, as head of your payroll management services team, you already know where your problems occur. Perhaps you always experience delays in getting managers to sign off on timesheets. Or maybe your system can’t accommodate all your pay rules, so your team has to make manual calculations. 

Nonetheless, if you’re serious about making your payroll processing system more efficient, conducting an A-Z payroll management workflow analysis is the first step to greater efficiency. You can’t fix your problem areas until you identify what they are.

  1. Ask Employees for Feedback Regarding Payroll Management Services

When it comes to payroll management, your employees are your customers. In addition to your workflow review, request feedback from workers and managers. How many employees have found mistakes in their paychecks? What were they? How quickly were they corrected?

Not only will you receive valuable (and perhaps surprising) input, but also you’ll earn greater buy-in when you roll out improvements to your payroll process—especially by giving employees a voice.

  1. Automate Your Payroll Process End-to-End

Humans aren’t perfect, and manual processes are time-consuming and error-prone. If you have an automated payroll processing system but still need to perform manual end runs around its limitations, it’s time to see what else is out there. Automating your payroll process will make tasks much easier for HR professionals.

It’s 2022, and 2023 is on the horizon. There’s no excuse for putting up with an inadequate payroll processing system.

  1. Evaluate Your Time-Tracking System’s Role in Payroll Processing

For many employers, finalizing timesheets is often the biggest holdup to running payroll. It could be that your time and attendance system makes it difficult for managers to find and resolve outstanding issues. Or perhaps your payroll processing system doesn’t interface well with your time-tracking software, creating routine delays. 

Whatever the problem may be, your time, attendance and payroll processing systems need to work well together.  Perhaps what you need is a new time and attendance solution—something with superior interface capabilities. Or maybe it’s time to move to a unified human capital management (HCM) system, where all applications co-exist on a single platform, making data transfer a complete nonissue.

  1. Reassess Your Payroll Processing System’s Reporting Capabilities

Do you spend a lot of time coaxing the needed reports out of your current payroll processing system—or worse yet, pulling reports together manually because your system isn’t up to the task? That’s a huge indicator that your payroll processing system is creating inefficiencies.

Fact: State-of-the-art payroll processing systems not only generate dozens of standard reports on demand, but also they offer self-service custom report writing capabilities so you can easily access whatever data your company needs.

  1. Make Sure Your Payroll Processing System Handles Tax Filings Well

Do you handle your company’s tax filings manually? Have you had to pay IRS fines in the past for making tax reporting errors? Then you could definitely be handling tax filings more efficiently, too.  

Competitive payroll processing systems feature built-in tax engines that are continuously updated as federal, state and municipal tax rules change. They can save you time—and keep you compliant—by:

  • Serving up the appropriate tax forms for new hires.
  • Processing and printing electronic W-2 forms and 1099s on command. 
  • Seamlessly generating and populating 1094-C and 1095-C tax forms.  

Is this an area that needs fixing in your payroll department?

  1. Install an Employee Self-Service Portal If You Don’t Have One

Finally, providing employees with 24/7 online access to their pay information saves payroll staff vast amounts of time because employees can find answers to their questions without outside help.

One large janitorial company found that introducing a self-service portal saved payroll managers time and reduced printing and mailing costs by moving information online. Most importantly, employees felt empowered and connected. 

The bottom line is that payroll managers have a very important role within their company: ensuring employees are paid promptly and correctly, and that employers maintain complete payroll compliance. To that end, every payroll manager needs a payroll processing system that increases their efficiency. 

It is more important than ever to have a cutting-edge payroll processing solution to help make your job as a payroll manager easier. If you are interested in exploring payroll management services, request a live demo today.

Filed Under: Human Capital Management Employee Benefits