What Are The Most Common Payroll Mistakes?
If you’re wondering “should I outsource payroll?” it’s important to understand some of the risks you face by continuing with an in-house payroll system. There are many potential disadvantages of in-house payroll systems, one of which is they can be more prone to mistakes and errors. Here are some of the most common errors businesses face.
Five Key Common Payroll Mistakes
When it comes to in-house payroll, these mistakes are often made:
- Wrongly classifying employees, meaning the wrong tax codes are applied and they may miss out on key benefits
- Miscalculating pay, which can be a serious issue when employees are required to work irregular hours to meet demand
- Missing deadlines, either in terms of missing payments to employees or neglecting to send records to officials on time
- Not handling relevant tax information and submissions in a timely fashion, leading to delays and extra charges
Poor record keeping, which can cause any number of issues, as well as records that are kept not being detailed enough.
Can Outsourcing Help Avoid Them?
If you’re weighing up the pros and cons of outsourcing payroll, something to consider is that outsourcing can help you avoid all of these potential mistakes and so many more. Remember that your outsourced payroll specialists will be able to focus all their time and attention on making sure that your payroll is handled as accurately as possible. Not only is the process automated as much as possible to minimise the risk of human error, but data entry is checked and double-checked to ensure accuracy.
When you’re thinking about in-house payroll vs outsourcing you have to remember the pressure that an in-house team is under to complete payroll in a timely fashion. In many businesses the payroll department will also have other duties, so they are trying to juggle the complexity of payroll with also meeting their other demands. This is where issues begin to arise and mistakes start getting made.
While we’re all human and everyone makes mistakes, as a business owner you know that payroll is something you can’t afford to make any mistakes with. Your employee satisfaction is essential, and for that, they need to be paid accurately and on time. Similarly, it’s important to avoid the potentially costly fines associated with payroll errors.
Contact eSlip Payroll Today
Avoid payroll mistakes going forward by contacting eSlip Payroll today.
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