A crucial task an HR manager plays in every company, aside from providing organisational structure and training new talent, is payroll processing. This involves distributing employees’ salaries and wages at the end of 19-21 business days.
Honestly, this task is not as exciting as it sounds because it requires high attention to avoid errors when computing employees’ pay. But because of the surrounding tasks that come with the human resource role, many HR managers seem to be consistently making payroll mistakes. These mistakes shape employees’ experiences and reduce their productivity in the workspace.
The 10 Payroll Mistakes HR Managers Are Making
Payroll processing is a highly detailed task that must be void of errors because employees rely on their paychecks to cater to their needs. However, a lot of cases have been recorded where HR managers make recurring mistakes while processing payroll for their organisations. Some of these payroll mistakes are:
Incorrect Tax Calculation
It is no news that we live in an ever-changing world where policies and tax rates change often. When tax rates change and you do not realize it on time as an HR manager, you try to make up the difference which could attract penalties or interest.
Missing Payroll Deadlines
As an HR manager, it is important to create a system in your organisation that allows you to remember when to deposit paychecks to your employees and taxes to the assigned authorities. Your employees may endure setbacks and work with the management to provide solutions to the supposed challenge, but they definitely will not tolerate delays in receiving their paychecks.
Data Entry Errors
Wrong data entry, such as employees’ work days and company profit, would not just wreck your competence as an HR manager but could also impact your business operations due to government infringement.
Being Reckless with Confidential Financial Data
It is unprofessional for staff outside the human resource department to discover the financial data of employees in an organisation. This tends to be one of the payroll processing mistakes HR managers are making even up to date.
Miscalculating Employees’ Pay
Imagine receiving a mail or phone call from a sad employee whose pay wasn’t paid completely. That would be embarrassing, and I know you would not want this scenario to come to play. To completely prevent this from happening, here are a few things you can do:
- Cross-check your tax rates.
- Use Earnipay’s payroll processing product for correct calculations.
Misclassifying Employees
In Nigeria, there are 2 categories of the workforce: employees and independent contractors. An employee is different from an independent contractor so are their salaries. Determining the category of each employee in your organisation will save you from payroll mistakes.
Leaving all payroll responsibilities to payroll automation
Payroll processing software will delightfully take up payroll automation. But when you do not bother to enter accurate data, you end up receiving the wrong figures.
No backup
We do not expect evil occurrences to occur, should they occur at your organisation. You should be able to retrieve all payroll information from a cloud drive or manual file cabinet.
Record keeping errors
One of the worst mistakes that HR managers can avoid completely is recording employees’ details incorrectly so that they keep conflicting, which could lead to the delay of employees’ salaries in the workplace.
Not having a payroll process.
A payroll process lets you know when to deduct taxes, set up company benefits, and pay employees. Some HR managers feel tensed at month-end because they have failed to put together a proper payroll process.
The Impact of Payroll Mistakes On Business
Payroll mistakes should not be overlooked or taken lightly when they occur because they could hurt your business and employees. A few things payroll mistakes could do in your business are;
You begin to lose great talent: One of the most painful things to experience as an HR manager is seeing the best talents leave an organisation due to recurring payroll mistakes. You would feel the pain as an HR manager realizing the effort and time it took you during the selection process.
Poor brand perception: You leave your brand at the mercy of negative publicity that could ruin your past efforts.
You spend time correcting the errors that have been made:.This whole process can be quite tasking, expensive, and stressful. You do not want to go through all of these rigorous processes because of a mistake that could have been avoided.
Why experience all of these when you could choose a better option? Using a payroll processing tool like Earnipay. Our product offers a range of features to streamline payroll processing for businesses. These include:
- Automated payroll calculations based on employee days worked and pay rates
- Integration with tax and benefits systems to accurately calculate deductions
- Options for issuing paychecks or direct deposits to employees
- Access to financing options such as credit to support your payroll.
- Access to on-demand pay allows your employees to access their salaries whenever needed.
- Advanced security measures to protect sensitive financial information.
Benefits of using Earnipay Payroll Processing Solution
- Our payroll processing tool integrates with tax systems like the Federal Inland Revenue System to calculate your tax deductions accurately. You will need not worry about penalties such as interest due to incorrect tax rates when you sign up as a business on Earnipay.
- In a way to help businesses avoid missing payroll deadlines, we’ve created a payroll processing tool to automate employees’ calculations based on the days they have worked and their pay rate.
- We also have created options for issuing paychecks or direct deposits to employees.
How to Get Started with Earnipay Payroll Processing Solution
Here’s how to sign up and use Earnipay’s payroll processing product:
- Visit the website and click on “Payroll.”
- Visit the website and sign up for the payroll solution, and then you will be granted access to your dashboard as an employer.
- On the employer dashboard, under “Payroll”,. Click on “payroll setup” to set up a payment schedule and structure, and you’ve successfully set up your payroll.
I hope by reading to the end of this article, you have known about the 10 payroll mistakes HR managers are making and possible solutions to prevent these mistakes from recurring.
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