According to a recent payroll survey, it was discovered that over 50% of companies believe there’s some room for improvement in their payroll process. Additionally, the organizational consistency in the larger payroll process has been reported as the main issue that organizations face today.
The most frequent errors occurring with the payroll process included underpayments, overpayments, and incorrect tax withholdings; however, approximately 24% of people responding to the survey stated they had other issues in other areas, too.
While it’s a good idea to get to know What is Payroll? – HR Payroll Systems, you also have to go beyond the basics. Here you can learn about the most common payroll problems that can occur – knowing what they are can help you avoid them.
1. Software Incompatibility
Not all payroll programs are going to be compatible. The same program used for storing employee records or profiles may be different from the one used for paying benefits, which is different than what’s used for performance tracking. Now is the time to integrate all these together, into a single program.
By reducing the total number of steps you take in the payroll process, you can help the entire department function more efficiently together. This is especially the case with small businesses.
2. Data Loss
One of the worst nightmares for any HR department is data loss in the payroll department. This may wind up being a devastating loss, especially if you don’t have your files backed up on an external drive. The most common, older HR software uses a server or computer hard drive for storing files. This creates several issues if the server crashes and loses information. No one wants to have to spend days having to renter employee data.
Use cloud-based software installed. This helps to minimize the possibility of these extensive losses.
3. File Disorganization
Do you find yourself having to constantly search for files? If so, now is the time to get organized. Misplacing payroll related documents can be a serious problem. Avoid this by using payroll software that offers human capital management and payroll functions all integrated together. This is going to make things much easier and more efficient.
4. Clerical Errors
While mistakes are a part of life, they should not be present in your payroll department. If they occur, they can result in over- or underpayment or may even misapply the pay rules. These types of expensive mistakes can be voided by implementing an integrated software that connects your employee’s profiles right to your payroll data.
5. No Mobility
If there is an issue with payroll and the manager of the department is out of the office, what options do you have? Adjustments have to be made to fix these problems. For most companies, the payroll manager would have to come in, but with the right solution in place, you can make these adjustments with your smartphone or tablet. This helps to reduce the need to have people who are off work having to come back in the office.
Avoiding Payroll Problems for Higher Levels of Productivity and Efficiency
If you want to ensure that you can avoid some of the most common payroll problems, you have to know what they are. The list here provides you with a good starting point, but you will likely have other issues pop up from time to time, as well. By integrating the right software solutions, you can minimize issues, solve some of the most common issues, and help your HR department remain productive and on-track, which is going to increase satisfaction among employees, too.
