Payroll processing: 4 things HR managers need to apply

Payroll processing: 4 things HR managers need to apply

20 de November, 2021

It doesn’t matter the type of industry your business is operating in, there’s one thing every organization should do and it is to process payroll the right way for their employees.

One thing you need to know is that payroll processing it’s going to be a little bit different between companies, because it depends on the organization specific structure, so it’s important to understand how to process and determine the best way to go forward with these activities when it comes to that matter.

Payroll processing: 4 things HR managers need to apply

In order to pay your workforce, gather important information and send all your staff their paychecks on time, HR professional managers need to work in an effective payroll process, manually or using a system. Let’s see next a couple of important things you need to take into account: 


Clean data is a good place to begin 

Employee data needs to be updated on a regular basis to ensure accurate payroll calculation.

Another aspect you need to remember is that misclassification is a common error, and it could impact your employees health insurance and retirement benefits, also tax withholding, so it’s important for you to organize your data the right way month after month.


Verify all the information

When it comes to timesheets, verify you should have a system that can detect inconsistencies in the data. It would be something useful to prevent or reduce risks so you don’t overspend money when you are working on payroll. It will allow you to check out deductions, commissions or tips that employees might have in some cases.


You might be interested in:  Classify your employees: the difference between full time and part time


Know exactly your payroll costs

The right way to go is knowing exactly how much each employee will cost the organization beyond their wages in order to find inconsistencies during each pay period. Take into account ​​gross wages, benefits, tax and National Insurance withholdings for each employee.


It’s important to make payments on time

You´ll have to pay taxes every month and national insurance as well, this is key to stay compliant. On the other hand by paying employees on time consistently you demonstrate that you appreciate their contribution to the workplace and want them to remain employed.

Payroll is much more complicated and detail-oriented than it may seem, and many small businesses find it more cost-efficient to outsource their payroll services to a third-party provider.


Midtown HR is the company behind a hundred happy companies. We´re focused on simple solutions for payroll and taxes, propose benefits that really feel like benefits, keep up with employment law and also help protect your team. Let’s have a conversation!


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We are a Professional Employer Organization (P.E.O.) that offers small and medium-sized businesses a full suite of solutions for their human resource needs.