As a company leader, the occasional payroll mistake might not seem like a big deal. However, in the eyes of the employee that was impacted, it’s a major concern. Plus, it could lead to a significant financial hardship for the affected worker. In any case, it leaves a lasting negative impression, one that can permeate through your workforce.
Essentially, employees aren’t going to tolerate payroll mistakes. As a result, finding ways to address the issues quickly and prevent future errors is essential.
If you’re ready to whip your payroll into shape, here are some steps that can help.
Use Electronic Timekeeping Methods
Paper timesheets are problematic for a few reasons. First, ensuring that workers submit them on time isn’t always the simplest, and late timesheets can cause delays. Second, a payroll employee may struggle to read the handwriting of some workers, and that can lead to mistakes. Finally, the extra data entry to get it put into your payroll system isn’t just time-consuming; it creates more opportunities for errors.
By transitioning to an electronic timekeeping method instead, there’s no need to collect timesheets. Plus, you eliminate the data entry part of the equation, saving your payroll team time while removing a potential source of mistakes.
Automate Payroll Taxes
Incorrectly accounting for payroll taxes when paying employees is problematic in several ways. Along with potentially causing workers to receive the wrong amount in their check or direct deposit, it can lead to under-withholding through no fault of the employee. Plus, there are issues of compliance, and non-compliance can come with stiff penalties for employers who manage deductions incorrectly.
By automating payroll taxes, it’s easier to ensure that the correct calculations are made, reducing the odds of removing the wrong amounts. Along with pay accuracy, that makes compliance easier to maintain. Further, it eliminates the need for manual calculations, saving time while eliminating a potential source of errors.
Properly Address Overtime
Inaccurately compensating employees for overtime hours leads to trouble. Often, overtime is paid out at a higher rate than a worker’s traditional wages. Underpaying is relatively easy for employees to notice, and seeing it may lead them to believe that their extra effort wasn’t appreciated, even if it was an honest mistake.
Ideally, you want to use a payroll system that can automatically account for overtime. By doing so, the payroll solution can identify overtime hours on its own and assign the correct rates based on the parameters your company sets. Plus, many can accommodate special rates for uncommon situations, such as offering double time on holidays. While setting it up may require some manual entries, once they’re in place, the payroll system can essentially ensure accuracy long-term.
Reach Out to Our Team Today
Ultimately, avoiding payroll errors is essential, particularly if you want to attract and retain top talent and avoid compliance issues. If you’d like to learn more about how to effectively manage payroll or need to fill vacant positions on your team, The Advance Group wants to hear from you. Contact us today.