Bookkeeping practices after the pandemic

As we emerge from a global pandemic, we wanted to share thoughts on how things might change in bookkeeping permanently. Below are some practices that may become part of bookkeeping forever.

Paychecks

• Payrolls are sent electronically more often. Most employers have convinced employees who previously refused direct deposit to accept payment cards or direct deposit. Despite the prohibition of forcing employees to receive direct deposit, most states allow you to mail paychecks to the employee’s home. Employees should know that direct deposit means getting paid faster now that the post office has warned of longer delivery times.
• Pay stubs can be sent electronically as well. As with direct deposit, most states do not allow you to force electronic pay statements on employees. Pay statements displayed the day before payday is a selling point to holdouts.
• Digital W-2s. Since employee W-2s take longer to arrive in the mail, some payroll services make them available several days before they are mailed, and most employees opt to receive them electronically.

Hiring

Employees can apply for positions through employee self-service portals, submit W-4 forms, and choose benefits and other options electronically. In addition, any employer-provided data can be verified through procedures set up by your firm.

Timesheets

Cloud-based timesheets can be accessed via employee computers and smartphones. In addition, when job duties require tracking on the job, some employers provide smartphones or tablets.

Human resources

The documents that human resource departments previously kept in a paper file folder (such as benefit elections, raises, garnishments, and child support orders) can now be scanned and stored electronically.

Remote work out of state

Paying remote workers in other states may become the norm as more and more employers discover how well remote work benefits their employees. However, as a business owner, you may need to:

• Register as a withholding agent in various states while still withholding in your state
• Register for unemployment taxes in each state where your employees work.
• As required by state law, provide workers’ compensation insurance.
• Register for business taxes in each jurisdiction that applies
• You will need to be familiar with laws that govern the payment of wages and other employee protections in each remote state.

Keeping the home office

Your company will need to investigate whether working from home is advantageous to the company’s bottom line. Therefore, keeping track of your employees’ residences and if they move is essential.

Other things to consider:

• Computer security
• Team communication software
• Work-from-home agreements need to be in place
• Occasional requirements for in-person meetings

While we are all happy to have life return to pre-pandemic norms, it may be that many of the bookkeeping practices for businesses that started during COVID-19 will stay with us for years to come.

If you need any help with your business bookkeeping, don’t hesitate to contact Halsey Resources. We would love to talk to you about how we can help you navigate a transition out of the pandemic.