3 Expert Tips To Help You Pay Your Employees
Paying your employees is more complex than you think. When you’re the employee, you don’t think twice about how you’re paid or how the money gets into your account. All you care about is that you get paid on time! But, as the employer, you’ve now got a lot of things to consider. So, here are my top tips to help you pay your employees.
Decide How They’ll Be Paid
There are many ways in which you can pay your employees. For permanent staff, the options are normally either hourly or annually. With an hourly wage, you pay them depending on how many hours they work every month. Each month, they could take home a different amount of money. Annually refers to a set wage they get every year. You then divide this by twelve months and pay them the same sum every month.
The hourly route is a good idea for businesses that work around shifts. For example, your small business has a group of employees that all work certain shifts throughout the day. This is often the case in retail or restaurant businesses. The annual way is better if you know your employees are working the same shift every single day. For example, your small business is office-based, and everyone is in from 9-5, five days a week. Consider both payment options and figure out which one makes more sense for your company.
Keep A Record Of Payments
Regardless of how often you pay your employees, make sure you keep records of every payment. This will help you prove that the payment has gone through. This will come in handy if prevents anyone ever claims they didn’t get paid. Keeping a record of payments will help you keep track of taxes, overtime pay, and more. As you can see over on ThePayStubs website, one idea for recording payments is to create and download a pay stub. You should give a copy to your employees as well, so they’ve got a personal record of the payment. This process will keep your business organized and ensure fewer issues with your payment system.
Automate The Payments
Finally, you have the issue of late payments. No one likes being paid late – everyone wants to have a set date that they call ‘payday’. Consequently, your business needs to set a payday every month, then automate the payments. Use accounting or payroll software to do this and automatically make payments at the right time every month. This will ensure everyone always gets paid on time and takes home the right amount, too.
Follow these tips and you’ll find it much easier to pay your employees. As a result, they’ll be happier, which will reflect positively on your business. Happy employees are hard-working employees. The last thing you want is for them to be irritated at work. If you fail to pay them time after time, they’ll eventually quit, costing your business a lot of money. Or, they’ll take legal action, which could be even worse!