Three Payroll Mistakes to Avoid as an Employer

Watch out for these common payroll mishaps that will cost you!

Paying employees properly can be difficult. Whether it is underpayment, overpayment, or payments that are delivered late, payment mistakes can cost you as an employer. The following are three of the most common payment mistakes that employers make that you should be watchful for.

Not Staying Up to Date with Legislation
Employment legislation laws change from time to time. For example, the national minimum wage has been updated several times over the past few years. If you are not careful to pay attention to changes in laws, failure to meet your legal obligations as an employer can result in fines.

Data Duplication
Some mistakes can cost a fortune. These mistakes are more commonly the result of manual entry because every time you input data, a chance exists that you may make a mistake. By entering the wrong numbers, you can easily overpay an employee, which can cost you way more than you bargained for. Human error is one of the most expensive mistakes to make in terms of paying employees properly – yet it is one of the easiest to fix. Automate as much data entry as you can. If it is entered correctly in the first place, there should not be any issues with errors.

Failure to Use Timesheets That Link Directly to Payroll
Timesheets can cause problems as well. If your timesheets do not automatically link to your payroll software, you run the risk of several issues, such as assigning the wrong payment codes to the wrong projects. As a result, you could pay a much larger or smaller amount for work that was completed.

Another common issue is the failure to pay for time worked. If timesheets are not migrated over into your payroll software properly, you may fail to pay employees altogether.

If you have had issues with payroll accuracy or want to be sure you take every step possible to prevent these costly errors in your payroll, contact us for help!

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