Friday, April 28, 2017

How to Maximize Payroll + HR on a Small Business Budget

At VertiSource HR®, we know it is important to examine every component of the internal business processes, especially on a small business budget. In this post, we will focus on payroll and HR expenses, with some tips on how to maximize your costs.

According to the Small Business Chronicle[1] , HR expenses should be budgeted in the following ways:

      Cost Allocation- How you allocate HR expenses relates to your organization's structure and business philosophy. “A single-entity business would centralize its human resources costs into one budget, while a firm with multiple locations might opt to include HR-related line items for each unit's portion of compensation, training and recruitment expenses.”
      Recruitment- The HR budget should support your organization's strategic plan and objectives for the year, which requires estimating the number of workers needed. Factor in costs related to recruitment such as advertising, background checks, travel, relocation and any pre-employment testing you do.
      Training and Development- Your HR budget has to cover both job skills and safety compliance, as well as any addition certification you offer to your employees.
      Administration- You have to leave room in the budget for morale boosting activities. “Assign HR activities that support employee engagement such as recognition initiatives, awards for service milestones, company picnics and employee birthdays to a separate budget account or include them as a line item in the general HR administration budget.”
      Compensations and Benefits- Last, but certainly not least, your employees need to be paid for their work and you need to be aware of the additional costs and taxes that go with this. Calculate anticipated changes in federally mandated employment costs such as Social Security or group life insurance and budget for overtime and incentive programs.

Speaking of Payroll, there are many ways to implement small business budgeting practices and still give your employees the compensation and benefits they need. The payroll process, if ran inefficiently, can drain essential resources from your business budget. Here are some effective ways to maximize our expenses:

      Hire a payroll company. Taking advantage of payroll services that handle expenses for you will promote efficiency and organization within your business. A service such as this can handle the intricacies of employee compensation, reduce your business’ payroll expenses through digital recordkeeping and automated services like employee time tracking that reduce the margin for error. Companies, like us at VertiSource HR®, can cost-effectively outsource your payroll and save you time as well! 
      If your budget is still too small to afford a payroll company, check with your bank to see if they offer payroll services. Usually, banks consider payroll processing a courtesy, which means the price will likely be substantially lower than what other payroll processing companies charge.
      Remember to set your budget to include payroll tax. Wages are just the beginning. There is also federal and state payroll taxes and, depending upon the state in which your business is located, there are other employment taxes as well. Plus, you are required to match Social Security and Medicare that is withheld from your employee’s pay.
      When it’s time to give raises, consider providing for your employees in the form of tax-free fringe benefits such as health, dental, and vision insurance, child care subsidy, a cell phone or a retirement plan, as a way to maximize your budget.

Call or message a VertiSource HR® rep today so we can help your small business grow! We provide integrated services to effectively manage critical human resource responsibilities and employer risks. Take advantage of our payroll and human resource services so you can focus on the future of your business, worry free.

Kailey Brennan, VertiSource HR® Blogger


Thursday, April 6, 2017

Interview with Kim Bolinder, CEO of VertiSource HR®

We recently sat down with the CEO of VertiSource HR®, Kim Bolinder, to gain some insight into entrepreneurship, her motivations, and what family means to her.

1. What inspired you to start a new business venture? How did the idea for your business come about?

  • I was originally approached by a friend who was interested in starting a payroll company.  It seemed intriguing so we did some initial research and began putting things in place.  Our goal was creating an experience that gave customers the feeling of being a partner and creating best practices that gave our client partners the support and comfort they should come to expect. Hiring experienced people from the industry, gave us confidence to move forward.  

2. What 3 pieces of advice would you give to those who want to become entrepreneurs or start their own company?

  1. Make sure you are educated in the business you are starting. Be sure you get all background information as well as every aspect of the type of business you will be starting. 
  2. Be sure to surround yourself with loyal and great people, don’t just hire to hire. 
  3. Be sure to have all of the financial backing to be sure you do the business the correct way from beginning. Trademark the company name once you have it.

3. What sacrifices have you had to make to be a successful entrepreneur?

  • My family was my biggest sacrifice. I lost time with them that I cannot get back. It takes a lot to get a company going and be sure you have everything in place. Working early mornings until late into the night. You don’t have a balanced life for a while. You must know when to leave work at the office

4. If you had a chance to start your career over again, what would you do differently?

  • I would figure a way to balance work with personal, before I started. Be sure I had the people around me to make that possible. I would also put measures in place to protect the company a bit more. 

5. As a female CEO, what advice or wisdom do you have to share specifically for women in business?

  • Always be confident and knowledgeable about everything you do. Know every department requirements and know a little bit of everything in your company so that you can take over if needed. It also helps when dealing with clients if you interact with them at any given point. You never know the circumstance that may come up. Be sure you set up the office requirements from the beginning and stick to them. 
  • Women CEO’s are definitely treated differently, just be sure you stick to your beliefs and knowledge and you will be great!! Always surround yourself with great people that respect you as a business person.

6. How do you see the company changing in the next few years and how do you see yourself creating that change?

  • My company will be growing dramatically in the next few years. We have created something that nobody else can emulate and we will continue to do this. We will not change the customer service side of our company. That is what sets us apart from all of our competitors. We have put some programs in place that we are continuously changing and making better, it is for our clients that we strive to make the improvements. We will try to always keep up with technology and the needs of our clients. We do everything for our clients and that is what I believe will continue to help us grow the way we intend to, as well as the technology level for our clients. 

7. What are your 3 biggest accomplishments?

  1. Growth and learning beyond my expectations
  2. Starting with nothing and ending up with so much (not monetary) and so many blessings.
  3. To have my kids respect me for my hard work and they have followed in my footsteps in how hard they work to succeed!!!