Prepare for the Busy Seasons of Payroll

The busy seasons in payroll can make our days more complicated, regardless of whether we have them on our calendars or not. 

Planned busy times include both fiscal and calendar year-ends as well as a new payroll system implementation that your organization adds within the year. Unplanned circumstances—such as sudden staffing shortages or an unexpected man-made or natural disaster—can add significantly to our busy times and stress levels.

No matter the reason or time of year, however, employees deserve a complete, accurate paycheck every time. Although these expected and unexpected changes can be stressful for both payroll manager and team, there is much we can do to make processes smoother and paychecks flawless.

Let’s further define these payroll periods with some examples. As each takes place, we must continue to provide superior service to our internal customers.

Fiscal Year-End 

In my experience working on a small payroll team, these responsibilities generally affect the manager or supervisor. Payroll reconciliations can be time consuming if not updated and maintained throughout the year.

During fiscal year-end, I lean heavily on my payroll specialist for entry; however, we still complete our semi-monthly payroll reviews.

Calendar Year-End 

Although payroll professionals always know when this is going to happen, it is by far the busiest time of year in a payroll life cycle. We should always look to the end from the beginning.

In December, we finish off any final fourth quarter adjustments and report any open items such as imputed income and other non-cash benefits. In January, set aside ample time for Forms W-2 review and employee inquiries.

Implementations 

Payroll system implementations can throw off even the most organized team. At these times, prioritize your employees while learning new systems.

Be proactive in the early stages of implementation to ensure your team’s priorities are met. Make a list of wants and needs and ask your team for input.

Finally, stay calm and open-minded, knowing your team will get through the pressures of a new system implementation. Think long-term and remember why your team pursued a new system.  

Staff Shortages 

Anytime there is a staff shortage in payroll, realignment of responsibilities is possible and should be anticipated. Manager review of job expectations will ensure the staff is appropriated effectively to use their strengths yet not be overworked.

If the staff shortage is due to attrition, managers should immediately work with their HR departments to set up position details to fill the vacant seat. 

Emergencies 

Having a business continuity plan for an emergency or crisis is a must for every payroll department. Power outages, hurricanes, and tornadoes are a few situations that can be successfully navigated with some planning. As we all learned (some of us the hard way), the COVID-19 pandemic demonstrated the importance of having a solid business continuity plan. 

Whether your organization is using a standard operating procedure (SOP) or a business continuity plan, payroll teams can stay ahead of worry and sleep loss by following preset procedures to get employees paid on time.  

Time Management 

The tips above are helpful, but what specifics can payroll teams set into place for future, busy-time success? Many payroll errors arise due to poor time management.

When teams include individuals with healthy task prioritization skills, they are better equipped to handle obstacles in front of them. Make a daily or weekly schedule with to-do items placed on a calendar helps to remind employees of their duties during these busy seasons of payroll.

Meet with your teams to collaborate on ideas for better time management. Use these ideas as an anchor to kickstart time organization among staff.

Training 

Team member training is a path to preparation for whatever lies ahead. System training provides confidence for employees to quickly answer questions or run requested reports.

Problem solving is easier when staff is presented with familiar scenarios. Payroll knowledge training should be ongoing for tax compliance and new governmental policies.

Managers should encourage employees to read articles, watch webinars, or attend in-person training. Once everyone is up to date on current policies, staff meetings can be used for sharing information. 

Team Solidity 

Team solidity involves cross-training department employees in daily processes, having open communication, and updating SOPs. Build and support a team excited about payroll and motivated to work collaboratively through stressful times.

Recognize employees who deserve acknowledgement. Encourage employees to take time off during slower times to refresh. 

Communicate With Other Internal Teams 

Be proactive with establishing and maintaining good working relationships with other teams such as HR or finance (depending on where your payroll department resides). Take time to answer questions from other department supervisors and share vital information in those meetings with your team.

Depending on the size of your organization, relationships can be face-to-face or via payroll company reminders sent over email, business communications, or system blasts. Set goals regarding response times directly to employees and other internal departments. 

Timecards 

Approved timecards can be an issue at any time. During busy seasons, even timecards add to the stress during data entry.

Be proactive and send reminders to both employees and supervisors in advance of due dates. Build relationships with time-approving supervisors to make communication quicker when in a payroll time crunch.

Send thanks to supervisors whose employees always have timecards approved and turned in on time. 

Proactive Planning 

Business continuity plans and SOPs are necessary in today’s business world. They are especially important in payroll.

If you don’t already have a working contingency plan in place, coordinate with your IT department as soon as possible. SOPs should be updated during slower times.

Payroll department employees need quick access to both business continuity plans and SOPs when there is an emergency. Payroll managers should review payroll time-off requests to ensure adequate staffing during busy times.

De-Stress the Season