Managing payroll seems fairly simple when a business starts up, but once a company grows and must manage the payroll for multiple locations, things become exponentially more complex. There are several locations, employee types, departments, and more that must be managed and maintained. And then there is the method of distributing pay to employees at all locations. Payroll software can help you manage this process and make multiple company payroll run like a top. Consider these tips for handling payroll for multiple companies.

Track employee locations.

Set up your payroll software system to track employee locations by profit centers, departments, companies, or a combination of these. Then when it's time to run payroll reports, you can filter out the area(s) you have tracked. For example, you could see the pay by department in one location, or your payroll costs by profit center, etc. This is also helpful for check printing, since you can print all your pay checks and sort by department and employee, or print paychecks for employees by the company they work in, which makes distribution much simpler.

Run payroll for multiple departments under one company.

If you are a single employer with multiple locations and want to run payroll for each location, setting them up as companies under one employer or by department can be extremely useful. This allows you to post the payroll data to the appropriate account, so you can keep track of expenses by location, and more. For instance, departments could be used across companies, so you could have an "office" department that could be used by all companies. Then when you process payroll, you can filter out and pay all office departments from all companies and pay them in the same pay run.

Pay employees via direct deposit.

By setting up your employees to be paid via direct deposit, you eliminate the worry of having to mail or deliver paychecks to multiple locations. Pay is simply deposited into employee accounts on pay day, and they receive a direct deposit pay advice, which is a sheet of paper representing their pay stub. Make things even more efficient by offering your employees the option of receiving and accessing pay advices electronically.

Take the time to learn more about what your payroll software has to offer, and you may just find ways to make your job of running payroll for multiple companies a simpler and faster process.