At ADP, payroll is nothing new – in fact, it’s something we’ve been helping clients with for over 60 years. And as ADP has evolved, so has the world of payroll. As National Payroll Week comes to a close, it’s a good time to reflect on these changes and see how payroll has become a cornerstone of Human Capital Management (HCM).
Hiring your First Employee? Step One: Learn Payroll
The truth is most business owners have to do payroll – and unlike ADP, they certainly didn’t go into business because they wanted to do payroll. Increasingly though, getting payroll right is the same as doing good business – for example, wage garnishments represent a risk to employers if not done correctly. For small business owners, this can be a particularly difficult challenge. Visit our Thrive blog, Entrepreneurial Ventures: 3 Founders Tell Their Stories, for inspiration from business leaders on why they went into business.
Step Two: Know Your Workforce
The workforce is changing as well and while strategies such as hiring independent contractors has financial benefits, managing payroll for the 1099 economy can be tricky. In fact, even as the complexity of payroll is increasing, it remains the foundation of human capital management. That makes it more important than ever to ensure your company is embracing the strategies and tactics necessary for success. Read Managing Payroll For The 1099 Economy for some strategies to help ensure your business is compliant.
Step Three: Stay on Top of Legislative Changes
Payroll has continued to get more complicated. More companies than ever have employees located around the world, and at the same time, the volume and velocity of government regulations continues to rapidly increase. This means that payroll professionals also have to be masters at keeping track of government requirements, including managing deadlines and creating spotless reports. At ADP, we continue to track new requirements such as FLSA overtime rules and proposed legislation to understand the impact to our clients. Visit our Spark blog, Facing New Payroll Laws: 2016 Legislative Churn Is Inevitable, for more insight on this challenge.
Step Four: Learn from the Experts
In the end, payroll isn’t just about paying your people. Consider all the parts of your business that touch – and are touched by – your payroll functions. While many factors are involved, payroll is the system of record for where to start taking your Human Capital Management to the next level – and having a trusted partner can make all the difference.