The 5 Most Common Payroll Mistakes and How to Avoid Them

1. HOME FREE TRIAL CONTACT US The 5 Most Common Payroll  Mistakes and How to Avoid  Them 5 Most Common Payroll Mistakes and How to Avoid Them Managing payroll is a complex HR task where there'll always be a high risk of CPF OVERTIME PAY PSG GRANTS

2. HOME FREE TRIAL CONTACT US errors. A single error can affect the whole company. That's why it's important to be aware of the most common payroll mistakes. With proper knowledge and the right tools, companies can avoid legal issues, keep employees satisfied, and maintain business growth. Read on to find out more! 1. Misclassifying Employees The Employee Act states regulatory compliance around employee benefits and protections. Some regulatory laws are only for certain employees. Exempt and non-exempt employees have different legal rights. Due to the complex guidelines, some companies misclassify their employees. Any misclassification may deny an employee some important benefits and wages. It may also lead to tax issues. An underpayment or overpayment can turn into a costly payroll error. How to Avoid This Mistake: Always check and update the status assigned to every employee. This includes exempt and non-exempt employees as well as independent contractors. Establish clear policies for the company’s payroll processes. This involves payroll exceptions and the procedures for reviewing and approving changes. There must CPF OVERTIME PAY PSG GRANTS

3. HOME FREE TRIAL CONTACT US also be a strict policy for records management and retention. Doing so will help you be consistent in complying with legal requirements. 2. Miscalculating Pay Payroll admins have a lot of things to keep track of when calculating pay runs. These include overtime, commissions, deductions, and more. Your state may also have different policies on these factors. Failure to track employee hours or paid time off will result in a higher risk of payroll errors. How to Avoid This Mistake: Check with state and local laws to verify wage guidelines based on your office's location like this. If you have employees in other cities or states, check the laws for each employees' location, too. Monitor your employees’ work time. Consider using time and attendance software like QuickHR. QuickHR, an integrated HRMS platform, helps track employees’ hours each day and week. Even for employees with different work schedules. 3. Missing Payroll Deadlines CPF OVERTIME PAY PSG GRANTS

4. HOME FREE TRIAL CONTACT US Payroll is a complex, time-consuming, and deadline-driven process. Failure to maintain a reliable schedule can affect employees' trust and the company's image. Making late payments and missing tax filing deadlines may lead to regulatory penalties. How to Avoid This Mistake: It's crucial to have a structured timeline - both internal for paydays and external for taxes. Always check the pay frequency requirements. Create a detailed payroll calendar and checklist for weekly and monthly activities. This way, you can plan the time you need for managing the payroll processes. 4. Using the Wrong Tax Rates Tax rates can change each year. These changes can cause payroll issues if you don't keep track of the tax rate changes. When you pay the wrong rate, you must make up the difference in owed taxes. And, you might also have to pay late fees, penalties, or interest on the taxes you owe. How to Avoid This Mistake: Keep track of the latest laws and regulatory updates. This way, you can make CPF OVERTIME PAY PSG GRANTS

5. HOME FREE TRIAL CONTACT US changes to payroll processes accordingly. 5. Failure to Keep Complete and Updated Records It's necessary for employers to keep three years’ worth of pay records. These records include hours worked, payment rates, payroll dates, and more. These records will keep your company safe in case of future audits. It'll also help you run payroll with a smooth workflow. Without complete and updated records, there'll be a high risk of miscalculations and misclassifications. How to Avoid This Mistake: One of the smartest ways to keep your company safe from any payroll errors is to invest in an integrated payroll system. Automated payroll software solves the traditional issues of manual entry and paper-intensive processes that can often heighten the risk of errors. Using an All-Inclusive Payroll Software to Avoid Any Payroll Errors An integrated cloud-based HRMS software like QuickHR helps businesses simplify and streamline payroll processes. CPF OVERTIME PAY PSG GRANTS

6. HOME FREE TRIAL CONTACT US QuickHR’s payroll system keeps payroll activities aligned with every HR ● process. These include time tracking, scheduling, overtime calculations, benefits, leave applications, claims, and more. This way, HR professionals can ensure fair and on-time releases of compensation. The automated payroll module simplifies pay runs for all types of ● employment. These include full-time, part-time, and freelance employees with different pay periods. Integrated with QuickBooks Online and Xero, QuickHR ensures that ● monthly payroll numbers stream right onto accounting charts, enhancing workflow efficiency. QuickHR also offers auto-inclusion and full regulatory compliance features. ● The all-encompassing software comes with CPF that guarantees smooth monthly submission. The platform offers direct AIS linkage of payroll information captured on the system. This will make it easier for businesses to handle deadline-driven IRAS season. QuickHR comes with stability, remote accessibility, ease of use, and cost- efficiency. If you want to know more about QuickHR, you may contact us or request a free demo with no terms and conditions! CPF OVERTIME PAY PSG GRANTS

7. HOME FREE TRIAL CONTACT US Image source: quickhr.co New Blog Post: Looking Forward By Looking Inward - 3 Tips On Looking Out For the Best Hires 21st Century Employee Engagement What Employers Should Know About The Family Care Leave CPF OVERTIME PAY PSG GRANTS