It seems a bit odd to talk about how you can save money when paying your employees. How is it that you’re able to save and spend at the same time? The answer is simple really - you just need to do your research. Using the right payroll software to facilitate your payroll can help you cut down on the cost of paying your people. Factor such as pay frequency, method of payment, and delivery of W-2’s all play a part in the cost of running your payroll.
For businesses who are just starting out it is wise to pay your employees less frequently. Consider a semi-monthly pay frequency, or if that seems like too much of a stretch for your employees go with bi-weekly. The less you run your payroll, the less money it will cost you. As your business grows and becomes more established you can consider making a transition to a more frequent pay schedule.
Method of Payment
Checks, pay cards, direct deposit - which one works best for your business? Well, the truth is it all depends. This is where you need to do your research and see what would be most cost effective. For some, you may be able to get pay cards from your bank at a fair rate. For other direct deposit may work best. The point I’m making here is you owe it to yourself to ask questions and search for the best rate, whatever method that ends of being. Also keep in mind you can change this method as you see fit.
Delivery of W-2’s
Yes, you can actually save when it comes to gaining access of employees W-2’s. Having your payroll provider print and mail out W-2’s may cost you a little more than it would if you printed those same forms at your location. However, if your employees have access to employee self service (ESS), then they can actually go and print their form W-2 at their convenience.
Paying employees is a necessity, but spending a lot on payroll does not have to be.