Human Resources Training

It Pays to Implement Payroll Best Practices

Payroll can be the most excruciating of tasks if carried out improperly. Organizations that need to optimize their time and resources need to get this right.

A study by Sage estimated that HR professionals spend more than a third of their time in work relating to payroll. Another study, the National Small Business Association (NSBA) 2013 Small Business Taxation Survey, showed that a quarter of the sample spent the equivalent of three full working weeks a year on just one issue -the one relating to employee statutory tax. These facts throw up the importance of payroll to HR and the need to implement best practices, because it doesn’t bode well for an organization’s HR to spend such a large proportion of time on payroll, no matter how important it may be.


The challenges for any organization that is serious about implementing payroll best practices can be summarized into the following:

  • Making payroll best practices successful with lean resources
  • Being compliant with relevant laws
  • Making sure that payroll does not suffer in this process

Payroll Best Practices as the Guiding Light

Imbibing and applying payroll best practices is an imperative for an organization’s HR, because payroll is a continuous challenge. As employees keep getting added and more laws and regulations come into force; payroll practices tend to become messier. Some best practices that go a long way in smoothing the payroll process:



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