Payroll

Time is money. And when you have a tendency to get buried under onboarding, vendor payment, classifying temporary employees, and other hiring details, time is priceless. Here’s a brief quiz to determine if hiring someone to handle your payroll services might be worth the investment.

Ten Questions to Help You Decide if You Need Payroll Services

1. Do you regularly hire independent contractors and/or temporary employees?
2. Is said hiring and onboarding one of the most time-consuming parts of your role?
3. Do your payment processes or corporate legal concerns cause frustrating bottlenecks?
4. Is your desk/desktop cluttered with binders, folders, and paperwork?
5. Have you ever made a bad hire because of a time crunch?
6. Do you get pulled into fighting payrolling fires more than once a quarter?
7. Would a high level of service free you up to focus on other aspects of the business?
8. Do concerns about compliance, worker classification, IRS audits, and workforce headcount keep you up at night?
9. Have you ever lost favor with one of your best contractors by paying late?
10. Do you have a reputation among contractors for paying late?

1-4 Yeses: Not everyone needs a service like PayReel. Startups and small businesses with smaller can often handle their own payroll. Still you may want to consider finding a payroll partner in the future and you can always give us a call just to talk through your challenges and see what solutions are out there.

5-8 Yeses: Hiring a payroll service would take a load off your plate and free you up for the parts of your business you do best. Give us a call to identify your biggest challenges and how a payroll service could address them.

8-10 Yeses: I think we need to talk. Today. Your blood pressure probably went up as you read the list above, you might be one of the businesses that does. For those who need quick/frequent access to qualified contractors or who want to take all the risk out of dealing with the independent workforce, PayReel is a headache free solution. PayReel’s independent workforce engagement solutions make classifying, onboarding, and paying your freelancers painless, paperless, and personalized. It’s about time.

I’m not saying you’re dysfunctional, but if you can answer ‘yes’ to any of the following questions, you probably have some flaws in your contractor payroll systems. But don’t worry! This isn’t like family dysfunction that can only be handled with gobs of counseling and Netflix marathons. We’re talking about something that can actually be solved with tried and true, deeply unsexy, un-volatile systems.

Payroll problems are easy to spot

Have you ever made a contracting mis-hire because of a time crunch?

Do you find yourself fighting payrolling fires at least once a month?

Have you ever lost favor with one of your best contractors by paying late?

Do you have a reputation among contractors for slow payments? Do you think you might but just not know it?

Do concerns about compliance, worker classification, IRS audits, and payroll efficiency keep you up at night?

via GIPHY

Yep…we can do better. Now what?

If you regularly hire independent contractors and/or temporary employees, follow these best practices to right the ship:

Go mobile and paperless

Collecting real-time data allows you to monitor your budget. This insight is priceless. Going paperless eliminates a thousand opportunities for error and ensures a digital record of every little thing.

File forms on time   

Plug in important dates as well as their related tasks so tax deadlines and other important dates never sneak up on you. Anytime you miss a deadline with W-2s, 1099s, 1095-Cs, and so on, you’ll end up with more work and headache on the back end. If you’re proactive, you avoid penalties, too.

Classify employees correctly

This is a biggie—and one we discuss often. You’ll need to consider up front whether your workers are full-time employees or independent contractors and whether they’re exempt or not. Getting classification wrong leads to a cascade of issues. If you’re not sure, ask an expert. This is no guessing game.

How to spot the right hiring partner for contractor payroll

If a high level of service would free you up to focus on other aspects of business, you really should think about hiring a partner. Consider a payroll management system. The right hiring partner:

1. Has checks and balances to make sure contractors receive payments on time
2. Has a tried and true payroll system that meets state and federal regulations
3. Is paperless. Because “I need more paper on my desk” is a thing you’ll never hear a reasonable person say
4. Offers custom solutions for your particular business or industry
5. Handles employee classification LIKE A BOSS

The bottom line

Payroll dysfunction is a super common, super damaging, and super avoidable issue. Nobody makes great decisions under pressure, and having a systemic problem in a department as important as Payroll can add up to a lot of pressure. Clean up your internal practices and/or hire a partner to take it off your plate so you can sleep better at night and make decisions from that place where you’re a rational, functioning human being.

About PayReel:

At PayReel, we minimize the time and effort it takes to get you ready for your project. Rely on PayReel to assume all of the risk associated with worker classification and get back to the business at hand. We make sure everyone gets paid quickly and easily and have Client Relationship Managers on call around the clock to answer your questions. All you have to do is call 303-526-4900 or email us. The PayReel team makes live event, corporate media, and brand management payroll easier, faster, and seamless.

Whether you’re starting a new company or you’re trying to develop a better strategy for your company’s payroll, there are a few things to keep in mind. This includes the state your business is presently in, the types of workers you have, and when you are able to push your workers’ paychecks through.

Here are some starting points that will help you find the right payroll schedule for your company.

View your state’s payday requirements

Did you know that each state has a set of specific requirements when it comes to your workers’ payroll? The United State Department of Labor features a graph that shows specific regulations around payroll. This should be your first step, which might narrow down your options.

Analyze your workers’ hours

Most companies have full-time, part-time, and perhaps even workers contracted by the hour (aka freelancers). It’s important to take inventory of this before determining your payroll system. If you’re working with freelancers, for example, you’ll want to understand the time-card approval process your company is currently using.

Decide the payment cadence

When putting together your payroll schedule, the biggest question might be how often your workers are paid. Some companies, including non-profits, have specific guidelines, such as only having the option to pay full-time employees once per month.

If your business has options, consider which system is best: weekly, bi-weekly, monthly, or bi-monthly. There are pros and cons for each, however, you could also send a survey to your workers to collect their preferences. This might also help you decide what day of the month will be payday.

Payment date

After the payment cadence, it’s time to decide when your workers will be paid, versus how often. If you have to approve hours in order to issue paychecks, give yourself or your accountant plenty of time.

According to the Bureau of Labor Statistics, “36.5 percent of U.S. private businesses [pay] their employees every two weeks.” Fridays are common for paydays, although it will vary depending on your cadence. Although your workers might have preferences, you’ll want to consider what’s best for your organization as well.

All-in-one payroll management solution

If you’re looking for another way to help organize your payroll system, consider a payroll management system that will take the hassle out of paying your workers. PayReel offers an innovative solution to aid companies with managing freelancers, ensuring they receive their payments on time. Our paperless payroll system meets state regulations, and it delivers payments efficiently and with ease. You no longer have to worry about all the details — we do the hard work for you.

Your specific payroll strategy will depend on your state’s requirements, your accountant’s suggestions, and what’s best for your business overall. Read more tips for payroll management!

If your company is looking for a payroll management system, it would be worth considering an Employer of Record (EOR) who can handle all of your business’ payroll, employee tax work, benefit management, compliance and worker classification. Payroll is simply the tip of the iceburg when it comes to business needs in employee management and support. Think about all of your company’s short and long-term goals when selecting the best payroll management system and EOR for your business.

Learn more about how PayReel can simplify your payroll and worker management processes.

About PayReel:

At PayReel, we minimize the time and effort it takes to get you ready for your project. Rely on PayReel to assume all of the risk associated with worker classification and get back to the business at hand. We make sure everyone gets paid quickly and easily and have Client Relationship Managers on call around the clock to answer your questions. All you have to do is call 303-526-4900 or email us. The PayReel team makes live event, corporate media, and brand management payroll easier, faster, and seamless.

If you missed open enrollment–either because you didn’t like your plan choices or because you wanted to take a nap every time you started the application–don’t fret. You still have options. Even if you are enrolled but aren’t happy with your coverage, you may find a solution in one of the less common approaches (read until the end!), which seek to provide an answer for many of the common gripes above.

Common gripes

Getting coverage–particularly for the untraditionally employed among us–can be a real downer. That’s because (a) it can be costly; (b) in-network providers can be inconvenient or ill-suited to your needs; (c) knowing what you qualify for isn’t always black and white.

What are my options?

Going uninsured: The big game changer of 2019 is that the federal mandate (which penalized people without health coverage) no longer applies, meaning you will not be charged for being uninsured in 2019. Young, healthy people who don’t have insurance through work may find this option appealing. Still, going uninsured is a big risk (as in–it could bankrupt you–no matter how little bank you have to rupt). It only takes one unexpected accident or illness to make a seemingly inexpensive choice a very expensive one indeed.

Special ACA enrollment/other state-funded options: If you lose coverage, move, get married, get pregnant, or have a change in income, you may qualify for a special enrollment period for the ACA. Just go to Healthcare.gov and select “See if I can enroll.”  If you qualify, you can also apply for Medicaid or the Children’s Health Insurance Program (CHIP) at any point.

Unregulated insurance: Some insurance options are not regulated by the Affordable Care Act, and therefore allow year-round enrollment. You may wish to look into private market insurers or short-term coverage. As always, read the fine print and do your research before deciding these less-common plans are right for you. 

Concierge medicine: For a monthly fee, you can essentially have unlimited access to Direct Primary Care (DPC) for all your regular needs. This is not the high-cost concierge medicine of olde. Instead, a monthly fee (sometimes as low as $50) gives you quick access to a doctor on call who, due to a smaller patient base, is highly familiar with your particular situation. Here’s an in-depth Consumer Reports rundown on the pros and cons of this approach. For those already paying insurance for a traditional approach, a DPC means an additional cost. For those foregoing traditional insurance (read on), this option gives access to higher quality care (at least in theory) while also offering cost savings.

Health cost sharing ministries: One of the first things they’ll be sure you know is that this decidedly NOT insurance and should not be thought of as such. However, some people find cost-sharing ministries a good alternative or supplement to traditional insurance. Even with subsidies, some only qualify for plans with high monthly premiums and/or deductibles, which means this option offers cost savings in many such cases. The fact that it allows you to choose your care providers based on factors that are important to you (such as healthcare philosophy, convenient location, specialization in your particular needs, etc.) also makes it highly appealing. The way these ministries operate varies, but the basic premise is that members pool monthly payments to share when someone has a medical need. While qualifying expenses are shared, members are technically self-pay and can therefore go anywhere that is accepting new patients. Here’s a Consumer Reports rundown on this approach.

Other cost-sharing services: While the well known cost-sharing options are considered ministries and therefore require some sort of statement of faith, at least one company is offering health cost sharing without any religious affiliation required. Being in the early stages (first memberships start in Jan., 2019) means information and testimonials are limited, but KNEW Health targets health-minded individuals and considers itself a “safety-net for large, unexpected medical costs.”

Combination of the above: Some find a combination of concierge medicine and some sort of catastrophic or health-sharing plan gives them access to the regular care they want while still maintaining peace of mind that they will not be buried in costs for accidents and unexpected illnesses. Here is some info from two people who use a combination of concierge medicine and health sharing ministries to get the care they want and save money, too. They talk about the costs, benefits in their unique situation, and their experience getting costs reimbursed.

The bottom line

You should always do your own research on big decisions–and healthcare is one of the biggest. What options work for you? Why? Once you’ve knocked this one off your to-do list, you will have earned that nap.

About PayReel:

At PayReel, we minimize the time and effort it takes to get you ready for your project. Rely on PayReel to assume all of the risk associated with worker classification and get back to the business at hand. We make sure everyone gets paid quickly and easily and have Client Relationship Managers on call around the clock to answer your questions. All you have to do is call 303-526-4900 or email us. The PayReel team makes live event, corporate media, and brand management payroll easier, faster, and seamless.