The human resource management team works on different levels for a better function and employee’s satisfaction. Payroll being one of them plays a major role as it deals with the wages, bonus, reimbursement, pensions, payout checks, etc. Managing payrolls is not an easy job; even with innovative payroll software human resource management teams face payroll errors on a daily basis. Here are five such common errors in a payroll process faced on a daily basis:
- Missing Deadlines
Missing deadlines of agencies for deposits and payroll taxes results in hefty penalties which are going to increase workload and strain in your bank accounts with the interest charges. A simple solution to such error is automating your payroll process which will allow you to pay your dues on time, keeping clear of the hefty penalties.
- Data Misinterpretation
Be it the name or the identification number of an employee, missing a single detail or a mismatched data can lead an organization towards overpayment and chaos. It is important to verify before any amount is debited. Maintaining transparency and allowing the employee to verify and enter his/her details via payroll Software ensures that accuracy of the data and can reduce workload of the human resource management team as well.
It is important for an employee to receive every penny of his hard earned money and any miscalculation due to lack of accurate hours of work or overtime hours will exempt the employee of his well deserved income, resulting in an adverse affect on his/her morale and productivity as well. Such errors are to be resolved on an immediate note. Payroll software helps in keeping a track of working hours and calculating the deserved amount to be paid to the employee. Automated calculation helps in maintaining a transparency between the employee and the employer.
- Compliance and taxes
An employee is well aware of the terms like ESI, PF, and Professional tax. Such terms are some of the key elements to determine the amount an employee receives and also provides security to the employee for their future. It is important for the HR team and the employee to be well aware of the rules and updated guidelines from the government, failing to do so can endanger the employee’s career and hamper the organization as well. A simple solution to such errors could be an easy access to the updated guidelines for both the HR team and the employee. An easy way to do that would be software that notifies the updated changes for a smooth run.
- Lack of confidentiality
Along with the growth of the digital industry the risk of data breach has also increased, easier it may be to process with the automated features but the risk of data breach cannot be ignored. It is important to have secured access as the payroll details of an employee consists of enough information which may lead to identity fraud and misappropriation of funds. The most convenient solution that could be recommended is cloud based payroll software that can provide a secure environment to store the required data.
Payroll management is a vast process which comes along with such challenges. Payroll errors, however minute they may be can result in terrible consequences. Such errors could be avoided with simple strategic planning and with the help of a top-notch payroll software. Payroll software will not only reduce the workload of the HR management team but will also help in empowering the employee to understand and maintain a transparent relationship.