How to Streamline Small-Business Payroll with Ease and Confidence

Payroll entails compensating your employees for their hard work, but it’s also central to team morale, legal compliance and financial accuracy. For many business owners, the process can feel complex and time-consuming. With a clearer system in place, you can save time, avoid penalties, and keep your team trusting you and focused on doing great work.

What to do:

• Establish a documented payroll policy: schedule, pay cycle, classifications (employee vs. contractor), and error resolution steps
• Maintain an updated payroll calendar with deadlines for tax deposits, paydays, and year-end filings
  

Why it matters:

Keeping everything clear avoids missteps, late payments, and penalties. According to PrimePay, 1/3 of businesses make at least one payroll error a year, which can lead to significant fines.

What to do:

• Use payroll software to calculate wages, deductions, and tax withholdings
  
• Offer direct deposit to deliver pay quickly and securely

Why it matters:

Automation can help reduce the likelihood of errors associated with manual work. Help speed up and simplify payroll with M&T Online Payroll , offering tax filing, direct deposit, employee self-service, and W-2/1099 generation, all integrated with your banking.

Best practices:

• Store key documents electronically: time sheets, deductions, employee classifications
  
• Conduct periodic audits to catch and correct discrepancies early

Why you should:

Accurate records help you resolve disputes fast and stay compliant with IRS and labor laws.

What to implement:

• Use M&T BizPay for control over payroll payments, and tools like ACH Monitor and Payee Positive Pay to protect your assets
• Set approval limits and alerts for abnormal payroll changes

Why it helps:

Small businesses are vulnerable to fraud. Monitoring tools can help block unauthorized payments before they drain your accounts.

Consider outsourcing if:

• Your business is growing fast
• You're expanding into new markets
• You’d rather focus on your core business than paperwork
  

Why it's smart:

External services stay up-to-date on compliance and tax changes, avoiding costly mistakes.

Smart strategy:

• Link payroll with your Business Checking Account for better fund management
• Use Cash Management Tools like BizPay, ACH, and real-time payments to ensure payroll aligns with inflows

Why it works:

Aligning payroll and cash flow keeps your business agile and payroll-ready at all times.

• Set up M&T Online Payroll for effortless processing and compliance
• Help secure your process with ACH Monitor and BizPay tools
• Automate accuracy and take back your time for growth

You may also be Interested in:

• Preventing Payroll Fraud
• Cash Management Solutions for Small Busines