As we emerge from the pandemic, small business owners are changing their focus from simply keeping employees on the payroll to keeping employees from pursuing other opportunities in a hot job market. Less than a year ago, payroll service provider OnPay’s research found that more than half of small companies took out Paycheck Protection Program (PPP) loans. And those that leveraged the PPP were 14% more likely to add new talent to their team, despite Covid.

Now, you might be at risk of losing your star employees as workplaces reopen. A Fast Company-Harris Poll indicates 52% of employees are ready to jump ship soon. Even if you were fully committed to keeping everyone employed last year, you could still experience turnover in 2021. After all, many companies are hiring, and they’d be happy to have your top performers.

In other words, you’ll want to put a lot of focus on giving your workers what they want. But to have enough time to concentrate on their needs — and make it easy to offer retention-improving benefits —  you’ll probably have to automate and rethink other tasks. The first place that probably deserves a revamp is your payroll. 

Below are several payroll hacks for small businesses that will help you clear your plate of responsibilities. Incorporate some of these hints into your everyday processes to free up time and resources for keeping your staffers satisfied.

1. Lean into payroll management software.

Are you still handling payroll by hand or relying on Microsoft Excel to handle your payroll? With so many cloud-based payroll SaaS companies available, you can afford to consider them. Payroll software provides you with an all-in-one platform to handle basic payroll functions. You’ll appreciate being able to move to an integrated system with an easy interface. Plus, you won’t run the risk of being out of compliance or missing a payroll deadline.

Bonus tip: Some payroll management software offers employee self-service options. Your workers can log in, see what’s happening with their pay, and download reports. Never underestimate the power of helping your people handle their money.

2. Invest in a central accounting system.

Do you have hourly workers? Find a central accounting system where they can upload their logged time. The system can automatically send everyone’s time sheets to your payroll software where taxes can be taken out. This completely removes any chance of human error when moving time card information from one location to another.

Bonus tip: If you already have a payroll management software program up and running, ask for central accounting software advice. Lots of software programs integrate with other types of software. Consequently, your payroll management partner probably can give you some suggestions for a central accounting solution.

3. Work with an accountant to properly classify workers.

Many small businesses have gotten into big trouble because they misclassified workers. Misclassification can cost your company quite a bit of money. It can also hurt your brand, which won’t be helpful when you’re trying to source great job candidates. The way around classification errors is to work with an accountant. Review all your positions and make sure you’ve properly classified each employee.

Bonus tip: For future hires, you may want to talk internally about what types of classifications make sense. As an example, bringing on an independent contractor rather than an exempt full-timer could save you money. It’s worth discussing upfront.

4. Schedule regular audits of your payroll.

No one likes to be audited by the government. Yet auditing your own business is a savvy move. Every few weeks or at least quarterly, run a comprehensive payroll audit. Spot-checking can help you ensure that every aspect of your payroll process is legal and correct. It’s much better for you to find mistakes than for Uncle Sam to find them for you! 

Bonus tip: What happens if your audit turns up mistakes, such as incorrect employee contributions or withholdings? Be honest with employees and rectify the errors immediately. Then, figure out why the problem or how the inaccuracy occurred and shut down any gaps in your payroll system.

5. Prioritize payroll form completion for new hires.

Sometimes, small businesses and startups hire people without insisting on having the necessary paperwork upfront. Not only can this result in disorganization, but it can hurt an employee’s payroll experience. No one wants to have a paycheck delayed for days or weeks because of a missing form. Instead, follow a strict onboarding protocol that includes getting all new hire documentation. 

Bonus tip: Although some documents need to be paper-based, others can be completed online with e-signatures. This is particularly helpful if you have remote employees who don’t want to print and scan (or mail) information.

6. Lay out a policy (and expectations) for all payroll procedures.

Do your team members fully understand all your payroll policies? For instance, if exempt workers get sick for a long time, when will they stop getting paid? And how will your sales people get reimbursed for out-of-pocket expenses? In their next paycheck? Or via a printed check? These are all items to include in an updated payroll policy that you can distribute across your workforce.

Bonus tip: A well-written, “covers all the bases” payroll policy indicates to your workers that you’re a serious employer. Additionally, payroll policies keep everyone in the know. You’ll have fewer problems if your employees know everything upfront about anything related to compensation. Ask workers to sign a form saying they’ve read and understand your policy.

7. Decide if your payroll schedule still works.

This is a toughie for many small businesses, but it’s critical to your crew. When you first opened your shop, you might have set up a payroll schedule. For example, perhaps you decided to pay everyone each week. Now that you’ve grown bigger—and your payroll has, too—your system may be too complex for once-weekly deposits. In that case, a biweekly arrangement might make more sense.

Bonus tip: Before making any sweeping payroll scheduled changes, survey your workers. See what they’d like. Then, use their feedback to inform your decisions.

Now is the ideal time to get your payroll in ship-shape condition. The less you need to worry about it, the more energy you can put toward generating an unsurpassed corporate culture. And when your culture rocks, you’re never at a loss for strong applicants to fill roles.