Improve Your Payroll Management Process
November 9, 2020
Improve Your Payroll Management Process

Payroll can prove to be a challenge for many businesses. A task that is so regular should be something that runs efficiently, but unfortunately that doesn’t always happen. 


As businesses grow, payroll management can also grow to be frustrating. Does being on the phone for hours trying to fix issues with your payroll company sound familiar? Or maybe you need a more robust payroll platform in order to be more productive? Maybe you have the technology, but you’re left figuring out how to use it on your own and not using it to its full capability? Time and attendance, ​GL integration, reporting, and other record keeping can quickly become a frustration.

 

Here’s Some Helpful Ways to Create a More Efficient Payroll Management Process


1.     Outsourcing to Save Time and Money

Many companies do not have the resources or bandwidth to manage the payroll process. Outsourcing your payroll is a cost-effective alternative to having your own payroll team. Depending on how in depth your payroll needs are, from direct deposit, W-2 processing, compliance, timekeeping, tax filing, reporting, 401(k) administration and other tasks, you can have access to both payroll technology and the support you need. 

 

You might not have the necessary time needed to stay on top of all the laws and regulations to maintain compliance, or the knowledge of the best payroll platform solution for your business, or finding the best structure for your payroll process. Outsourcing your payroll to SimcoHR can give you peace of mind when you just don’t have the time or the finances to handle ​these ​tasks on your own.  SimcoHR can also integrate, beyond payroll, other services within HR and employee benefit operations to manage and streamline your systems resulting in increased productivity.

 

2.     Simplify and Streamline Your Payroll System

There are several benefits to using a payroll platform. You can decrease the risk of human error; you can make it easier to control and maintain time and attendance that would allow you to discover trends that could lead to cost saving opportunities.

 

Streamlining your payroll system is a solution to improving your payroll management process. A professional overseeing your payroll can also advise you on ways to improve your existing system. You can accomplish this through technology. Not only will your payroll process be more manageable ​than a paperless system, but it will save you a significant amount of time. A paperless payroll process utilizing an online platform will offer a secure way of handling your payroll data. 

 

3.     Is Your Payroll Software Up to Date?

When is the last time you investigated payroll software options? Upgrading your platform can allow you to be more productive at your business. If you find that you’re spending too much time on payroll, then it’s worth looking into. There ​are a variety of platforms now available to fit different sized businesses and their needs. From basic payroll platforms for small businesses, to large robust platforms that integrate benefits and HR to help streamline your business. 

Spending less time processing your payroll, with increased accuracy in entering in data and processing is a win! Technology alone may not be your answer, but when it’s backed by a service that can walk you through getting the most out of your technology, or teaching you how to use it, ​it can make managing your payroll a much better experience.

 

4.     Simplify Your Pay Schedules

Weekly, bi-weekly, bi-monthly, hourly and any combination of pay schedules can be difficult to manage. If you are a business who has to stay on top of several pay schedules, consolidating everyone to one type of pay schedule is more efficient, easier to maintain and creates less room for errors. ​SimcoHR can assist with this.

 

5.     Payroll Education and Continuous Learning

Continuous learning is vital for any business, and any industry. Payroll management is no exception. There are always technological advances to stay on top of, or new rules and regulations that are always changing. It’s a best practice to educate and train yourself on an ongoing basis about the latest things happening that could either make you compliant, or simply more productive. ​

 

6.     Payroll and Compliance

A big part of managing payroll is tax filing. It can be extremely costly and devastating to a business who fails to ​be in compliance with laws and regulations or meet required deadlines. Be sure your payroll processes have incorporated into it your state and federal payroll, and tax regulations and apply any necessary changes.

 

SimcoHR can help you with all of these tasks by being your full-service payroll company. They also have several other platforms available in HR, employee benefits, and risk management that all work together to help your business. Contact SimcoHR at (585) 750-3246 for a free consultation and discover how streamlining your day to day management tasks can save you time and money.

 

You might also be interested in reading about “Costly Mistakes - Failing to Remit Payroll Taxes and Retirement Plan Contributions on Time” available here.

Sign up for our newsletter.

Top 5 HR Trends That Will Shape Businesses in 2025

January 7, 2025
As 2025 kicks off, the HR landscape is evolving faster than ever before. Technology, shifting workforce expectations, and the need for businesses to be agile in a dynamic global environment are all driving change. What worked yesterday may not be enough today, and companies must adapt to stay ahead. Here are the top five HR trends you’ll need to watch closely in 2025: 1. AI is Changing the Hiring Game Artificial intelligence is no longer just a buzzword in HR—it’s a game-changer. Tools that can scan resumes, match candidates to roles, and even conduct initial assessments are becoming staples for businesses aiming to save time and improve hiring outcomes. In 2024, many organizations began integrating AI to remove unconscious bias and make their hiring practices more inclusive, and this trend is expected to accelerate. 2. Flexibility Isn’t Just a Perk Anymore Hybrid and remote work models are here to stay, but the conversation has shifted. In 2025, it’s less about offering flexibility and more about making it work effectively. Companies are adopting sophisticated tools for remote collaboration, redefining performance metrics, and ensuring policies address the nuances of managing both in-office and remote teams. The focus is on maintaining productivity without compromising employee well-being. 3. Wellness Goes Beyond Gym Memberships In recent years, wellness programs have evolved beyond basic offerings like gym memberships to address a wider range of employee needs. As companies recognize the link between employee well-being and productivity, they’re broadening their focus to include mental health, financial stability, and holistic support. In 2023 and 2024, for example, Delta expanded its employee wellness initiatives by improving access to mental health care. The airline worked with Spring Health, a new EAP provider, to create a larger and more diverse network of mental health professionals, offering better support for both employees and their household members. Looking ahead to 2025, wellness will become more deeply integrated into company cultures. Expect companies to go beyond providing reactive support to fostering proactive wellness through personalized tools, such as mental health apps, financial coaching, and enhanced benefits like paid leave for caregiving. With these programs, businesses are not just addressing immediate health concerns but also empowering employees to manage their overall well-being in a more holistic way. The focus will be on creating a supportive, sustainable work environment that helps employees thrive both at work and in their personal lives. 4. Upskilling is a Competitive Necessity Technology is evolving faster than ever, and companies are racing to keep up. Upskilling employees in areas like data analysis, AI, and emerging tech became a priority in 2024, and it’s clear that this trend will only grow. Businesses that invest in continuous learning programs—whether through certifications, on-the-job training, or digital learning platforms—are better positioned to stay ahead in their industries. 5. Data is Driving HR Decisions HR is leaning heavily on people analytics to guide decision-making. Instead of relying on intuition, businesses are using data to understand employee engagement, pinpoint reasons for turnover, and improve productivity. The emphasis on metrics like employee sentiment and workforce utilization gained traction last year, and more organizations are embedding analytics into their HR strategies to tackle challenges proactively. Final Thoughts The HR landscape in 2025 will be shaped by these transformative trends. Businesses that embrace innovation and prioritize their people will find themselves not just adapting but thriving in the evolving workplace. As these trends unfold, staying proactive and flexible will be the key to turning challenges into opportunities.

IRS Announces 2025 PCORI Fee Update

January 6, 2025
The IRS has released the 2025 Patient-Centered Outcomes Research Institute (PCORI) fee , which will increase to $3.47 per covered life —a $0.25 increase from 2024. This fee applies to plan years ending on or after October 1, 2024 , and before October 1, 2025 . What is the PCORI Fee? The PCORI fee was introduced as part of the Affordable Care Act (ACA) to help fund the research conducted by the Patient-Centered Outcomes Research Institute (PCORI). This research focuses on improving healthcare outcomes by comparing different medical treatments. The fee is levied on insurers, as well as self-insured and level-funded health plans. The fee is calculated based on the average number of covered lives under a plan and is due once a year, with the filing occurring during the second quarter on Form 720 , the Quarterly Federal Excise Tax Return . The payment is due by July 31 each year. Key Details for Employers and Plan Sponsors Who is Affected? : The fee applies to health insurers, self-insured health plans, and level-funded health plans. When is it Due? : The fee must be reported on Form 720 and paid by July 31 each year. How is it Calculated? : The fee is based on the average number of covered lives during the plan year. The updated $3.47 per covered life fee will be in effect for health plans with policy years ending between October 1, 2024, and October 1, 2025. Employers should be prepared to account for this increase when filing for 2025. For more information on the PCORI fee and its reporting requirements, consult the IRS Bulletin 2024-49 , published on December 2, 2024, or visit the IRS PCORI Fee page . 

Federal DOL Restores Simplified Tip Credit Rule: Employer Guidance

January 6, 2025
In a move welcomed by many employers in the hospitality and service industries, the U.S. Department of Labor (DOL) has officially reinstated the pre-2021 tip credit rule. This change, effective December 17, 2024, follows a recent court of appeals decision that vacated the “80/20/30” tip credit rule that had been implemented under the Trump administration. If you’re wondering what this means for your business, don’t worry—this update doesn’t require any immediate action on your part. What Was the "80/20/30" Rule? Before we dive into the implications of the DOL’s latest rule change, let’s quickly review the "80/20/30" rule. This rule, introduced in 2021, placed specific restrictions on how much time tipped employees (such as waitstaff and bartenders) could spend on non-tip-generating duties (e.g., cleaning, setting up, and other side work). The rule essentially required that tipped workers spend at least 80% of their work hours on tip-generating activities to continue qualifying for the tip credit. Moreover, under the "80/20/30" rule, employers could no longer use the tip credit to offset wages for certain non-tip-producing activities, and they had to ensure that employees spent no more than 30 minutes at a time on side duties. This increased the burden on employers, as it required more careful tracking of employee duties and work hours to remain in compliance. Why Was the Rule Vacated? The court of appeals decision in August 2024 ruled that the "80/20/30" rule was too restrictive and inconsistent with the intent of the Fair Labor Standards Act (FLSA), which allows employers to take a tip credit for workers who perform both tipped and non-tipped duties. The court found that the new rule created unreasonable administrative burdens and restrictions that were not in line with past practices or legal precedents. In response to this ruling, the DOL moved quickly to restore the pre-2021 tip credit rule. What Does the Reinstatement of the Pre-2021 Rule Mean for Employers? With the reinstatement of the pre-2021 tip credit rule, the DOL has effectively simplified the way employers can apply the tip credit to their workers. Under the prior rule, employees who perform a combination of tipped and non-tipped duties can still qualify for the tip credit, as long as their primary job responsibility is related to tipped work. Employers no longer have to track the precise breakdown of time spent on tip-generating vs. non-tip-generating activities in the same way. This returns to the more flexible guidelines where as long as tipped employees perform "related" duties (e.g., cleaning their station, setting up for service), they can still receive the tip credit for those hours, provided those activities don’t dominate their workday. What Action Is Needed from Employers? For most employers, this change will not require any immediate action, as the final rule effectively restores the pre-2021 approach. The main thing to note is that employers should continue to comply with the broader requirements of the Fair Labor Standards Act (FLSA) and ensure they are properly paying employees at least the federal minimum wage (including tips) when they apply the tip credit. Here are a few things to keep in mind: Reassess Timekeeping Systems: While the rule change simplifies some aspects of record-keeping, employers still need to ensure they have a timekeeping system in place that accurately tracks the hours worked by tipped employees. It is essential to ensure that the wages (base pay plus tips) equal at least the federal minimum wage. No Need for Immediate Adjustments: If you were already applying the pre-2021 tip credit rule, no changes are necessary on your part. For those who had adjusted to the "80/20/30" rule, reverting back to the previous method should not require significant changes. State and Local Laws: Employers should still be mindful of any state or local laws that may have stricter requirements than federal law. Always check your state’s labor regulations to ensure full compliance. Why Is This Change Important? The reinstatement of the simplified tip credit rule provides relief to many employers, particularly in industries like restaurants, hotels, and other service-based businesses where tipping is common. The pre-2021 rule is seen as more employer-friendly, offering more flexibility in how tipped employees can spend their time without losing eligibility for the tip credit. For employers, this means less administrative burden, reduced risk of compliance issues, and potentially fewer legal challenges. This shift is a step toward simplifying labor law compliance for businesses already struggling with the complexities of wage and hour rules. Looking Ahead As we move further into 2025, it’s important for employers to stay informed of any future changes in federal labor regulations. While this change restores a previous rule, the DOL’s stance on tip credits and wage issues can continue to evolve. Employers in tip-dependent industries should continue to monitor updates from the Department of Labor and legal rulings to ensure ongoing compliance. The DOL’s restoration of the pre-2021 tip credit rule is a welcome change for many businesses, offering a return to simpler guidelines and less restrictive requirements. For most employers, no immediate action is required, but it’s always a good idea to review your practices to ensure they align with the updated rule. If you need further assistance in navigating these changes, reach out to Simco to ensure your business stays compliant in 2025 and beyond. 

Have a question? Get in touch.

Share by: