6 Tips for a Successful Year End Payroll

We have always admired Payroll Managers. People who can hold their breath from the last payroll of one year until the first payroll of the next without passing out deserve a special place in the pantheon.

New cloud payroll solutions that remove much of the stress and risk from year-end payroll closeout. These sleek new platforms from vendors like Workday and SuccessFactors do not eliminate the need for diligence, but they do make updates much easier. Workday provides the means to run test calculations on the fly without the need to set up a separate test instance.

Unlike legacy systems, cloud vendors who have customers on a single code base can automatically apply tax and regulatory updates for all customers. Although customers should test updates as recommended, they do not have to bring their systems down to apply patches.

Each vendor publishes its own year-end checklists for payroll management of the year and the first run of the next, but we want to provide here some general guidelines. We hope they make year-end processing easier for you.

1. A smooth year-end process depends on diligence in every cycle throughout the year. Resolve issues when they arise and don’t put off corrections and adjustments until year end.
2. If you have a legacy payroll management system or an older cloud system that requires IT to apply changes, bring people together early in the year. Give everyone time to prepare.
3. Rely on employees and managers to spot issues throughout the year. Make payroll information easily available to them, and provide it as soon as possible. Alert employees will help you spot problems before they become cumulative.
4. If you can, provide a mobile application so employees can check their balances quickly at any time.
5. Provide timely information about tax and regulation changes in simple terms that everyone can easily understand. Use multiple communication channels.
6. Coordinate your employee communications with the Benefits office and other HR functions. Not only will you prevent cross-communication, but you will instill confidence and trust among your employees. There is comfort in having the people who manage your pay and benefits working well together.

Preparation can go a long way toward making the year-end a good time for enjoying a little time off for relaxation. Our best wishes to you for a stress-free year-end process.

PhenomeCloud is a comprehensive technology solutions provider committed to empowering businesses to overcome challenges, enhance their workforce capabilities, and achieve superior outcomes.