The Top 5 Payroll Errors and How to Avoid Them

1. The5MostCommonPayroll Mistakes and How to Avoid Them 5 Most Common Payroll Mistakes and How to Avoid Them Managing payroll is a complex HRtask wherethere'll always be a highrisk of

2. errors.Asingleerrorcan affectthe wholecompany. That's why it's important to be awareof 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.MisclassifyingEmployees The Employee Act states regulatory compliance around employee benefits and protections. Some regulatory laws are onlyfor certain employees. Exempt and non-exempt employees have different legal rights. Due to the complexguidelines, some companies misclassify their employees. Anymisclassificationmaydenyanemployeesomeimportantbenefitsand wages. It may also lead to tax issues. An underpayment or overpayment can turn intoa costly payroll error. HowtoAvoidThisMistake: Always check and update the status assigned to every employee. This includes exemptand non-exempt employees as well asindependent contractors. Establishclearpoliciesforthecompany’spayrollprocesses.Thisinvolvespayroll exceptions and the proceduresfor reviewing and approvingchanges.There must

3. also be a strict policy forrecords management and retention. Doing sowill helpyou beconsistent in complying withlegal requirements. 2.MiscalculatingPay Payroll admins have a lotof things to keep trackof when calculatingpay runs. These include overtime, commissions,deductions, and more.Yourstate may alsohave different policies on these factors. Failure to track employeehours orpaidtime offwill result ina higherrisk of payrollerrors. HowtoAvoidThisMistake: 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 foreach employees' location, too. Monitor your employees’ work time. Consider using time and attendance softwarelike QuickHR. QuickHR, an integrated HRMS platform, helps track employees’ hours each day and week. Even for employees with different work schedules. 3.MissingPayrollDeadlines

4. Payroll isa complex,time-consuming, and deadline-drivenprocess. Failure to maintain a reliableschedule canaffect employees' trustand thecompany's image. Making latepaymentsandmissing taxfilingdeadlinesmay lead to regulatory penalties. HowtoAvoidThisMistake: It's crucial to have a structuredtimeline - both internalfor paydaysand external fortaxes.Always check thepay frequency requirements. Create a detailedpayrollcalendarandchecklist forweeklyandmonthlyactivities. This way, you canplan the time youneed formanaging the payrollprocesses. 4.Usingthe WrongTaxRates Taxratescan change each year.These changes cancause payroll issues if you don'tkeep track of the tax rate changes. When you pay the wrong rate, you must make up the difference in owed taxes. And, youmight alsohave to pay latefees, penalties,or intereston thetaxes you owe. HowtoAvoid ThisMistake: Keep track ofthe latestlaws andregulatory updates.This way,you canmake

5. changestopayrollprocessesaccordingly. 5.FailuretoKeepCompleteandUpdatedRecords 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 willkeep your companysafe in caseof future audits. It'll also help you runpayrollwith a smooth workflow.Withoutcompleteandupdatedrecords, there'll be a high risk ofmiscalculations and misclassifications. HowtoAvoidThisMistake: 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 heightenthe risk of errors. Using an All-Inclusive Payroll Software to Avoid Any Payroll Errors An integrated cloud-basedHRMS software likeQuickHRhelps businesses simplifyand streamline payroll processes.

6. QuickHR’spayrollsystemkeepspayrollactivities alignedwitheveryHR process. These include time tracking, scheduling, overtime calculations, benefits,leaveapplications,claims, andmore.Thisway, HRprofessionals canensure fair and on-time releases of compensation. • The automated payroll module simplifiespay runs for all typesof employment.Theseincludefull-time,part-time,andfreelanceemployees withdifferent pay periods. • Integrated with QuickBooks Online andXero, QuickHR ensuresthat monthly payroll numbersstream rightonto accountingcharts, enhancing workflowefficiency. • QuickHRalsooffersauto-inclusionandfullregulatorycompliancefeatures. The all-encompassing software comes with CPFthat guarantees smooth monthly submission. The platform offers direct AIS linkage of payroll information capturedon thesystem.Thiswill make it easierfor businesses tohandle deadline-driven IRAS season. • QuickHR comes with stability, remote accessibility, easeof use, and cost- efficiency. If you want to know more about QuickHR, you may contact usor requesta free demowith no terms and conditions!

7. Imagesource:quickhr.co NewBlogPost: Looking Forward By Looking Inward - 3 Tips On Looking Out For the Best Hires 21stCentury Employee Engagement WhatEmployersShould KnowAboutTheFamily CareLeave