When you run a business that keeps people employed, one of your most important responsibilities that you need to remain fully on top of involves payroll. Otherwise, people are not going to get the money that they are owed on time, and this can easily lead to a situation where they become demotivated, as well as distrustful of the organization as a whole. There are plenty of common mistakes out there, but a better knowledge of what these are helps to ensure that you do not keep on encountering the same sort of issue time and time again. So, here are just a few common payroll mistakes to avoid.
Not Tracking Employee Hours and Overtime
A major issue that commonly crops up is failing to track employee hours and overtime. Essentially, you should always keep a close eye on how much your staff members are working, ensuring that you pay them as and when required based on the shifts that they are putting in. This tends to be a little more complicated when you have staff that are working more unstable hours, which is why you need a clear timesheet system backing you up at all times. As well as this, you need to delegate the responsibilities in terms of who should be filling them in, how often, etc. Failure to properly manage and record work hours can result in loss of employee motivation as well as increased costs.
Missing Important Deadlines
The whole issue of payroll is one that involves deadlines, which is why you need to remain on top of them as fully as possible. A big part of this comes down to ensuring that you onboard employees correctly in the first place to prevent delays in their pay from occurring. Beyond this, you also need to do more to ensure that any pay rises are registered, recorded, and processed within the correct amount of time. There is also the issue of meeting any deadlines with regard to the tax year etc, which should also be at the forefront of your mind.
Not Keeping Accurate Records
A big part of the problem has already been covered thanks to professional payroll software that you can get your hands on in the modern world, but record keeping should be a central pillar of your business. This is essential in case there are any audits or other financial investigations at your business. It is also important for the accounts department to be able to track exactly what is going on with your incoming money and outgoings as well.
If you can avoid these three central payroll mistakes, you certainly greatly improve your chances that everything is going to go smoothly. At the same time, it is much less likely that you will find yourself in financial trouble as the records that you are keeping are simply not in the state that they need to be. Ultimately, a little bit more care and attention should counter many of the problems out there effectively, as well as using the right software and employing the best people.
The post Most Common Payroll Mistakes to Avoid Making first appeared on BusinessMole.
