Payroll is an essential component of any business' operations. Like all aspects of business, however, payroll continues to evolve and change over time. As payroll changes, business owners develop new goals and priorities.
A recent survey of small business owners found that there are several distinct priorities when it comes to managing payroll during 2019. The top five priorities are discussed below.
- Offering direct deposit.
Nearly 30 percent of business owners polled chose "offering direct deposit" as their top priority for payroll in 2019. Direct deposit allows payroll checks to be deposited electronically into the employee or independent contractor's account without the need for a paper check. Not only does direct deposit save on time and resources, but it is also more convenient and appealing for employees.
- Providing electronic paystubs.
The next most popular payroll priority was "providing electronic paystubs," which was the priority selected by 15 percent of those businesses surveyed. Electronic paystubs allow employees to receive their paystubs instantaneously and keep track of them easily over time. Providing paystubs electronically also conserves business resources and is more convenient for everyone involved.
- Offering smartphone access to payroll information.
Many employees and independent contractors now use their smartphones for a variety of purposes, from banking to paying for goods. As a result, more employers are looking into making their payroll information available via smartphone. One of the easiest ways to do this involves creating a smartphone app that employees can use to login and view their payroll information.
- Shifting to daily pay.
In the past, most employees or independent contractors received their pay on a weekly, biweekly or monthly basis. Paying employees more frequently would have been too time-consuming and resource-intensive. However, thanks to the development of digital technologies, paying employees and other laborers is easier than it has ever been. In fact, nearly 10 percent of employers surveyed indicated that shifting to daily pay is a payroll priority for their businesses in 2019.
- Shifting to outsourced payroll.
When it comes to handling payroll, businesses have two options: they can oversee payroll in-house, or they can outsource payroll to a third-party provider. Handling payroll in-house can be a challenge for many businesses, especially when the business hopes to make payroll more tech-friendly and convenient for employees. As a result, many business owners are now shifting to outsourced payroll.
This year, business owners plan to make a variety of changes to their payroll systems in order to improve efficiency and provide better services to their employees.
Do you have the support you need to manage your small business bookkeeping?
Schedule a 30-minute appointment to speak with a local small business adviser.