Payroll blunders can unleash a myriad of troubles for any business be it a small/start-up or large organisation. The problems can sprout up in the form of tax violations and expensive overhauls. Thus, it should not come as a surprise why several entrepreneurs and HR managers tend to get caught in a fix when it comes to running this quintessential process.
Thus, to ensure that you pay your people correctly whilst complying with all the tax regulations, here are five payroll mistakes that you need to keep at bay.
1. Unpunctual with Payroll Processing: There are times when entrepreneurs or the HR department can fall behind in paying their employees. The results are unhappy employees and chances of committing expensive errors such as overpaying the employees in the heat of rush. In fact, things can turn out a lot sourer when the process includes departing personnel. An HRMS and payroll software can make things much easier and hassle-free for the HR people.
2. Incorrect Employee Information: Having incorrect information about employees and their pay details is an invitation to loads of troubles. Thus, it is essential for HR professionals to keep abreast with employee data. These details include name of employee, PF/TDS details, pay details (including gross salary, hourly pay, etc.), tax file number and so on. Here, arming your HR crew with a mobile payroll cloud-based app that comes with employee self service portal can address all the pains.
3. Delay in Filing Taxes: The tax regulatory body of every state specifies a stipulated due date for filing taxes. A business failing to meet the deadline may have to incur heavy penalties. Thus, it is vital to stay updated with all your tax filings to avoid costly consequences.
4. Goof ups with Filling Tax Forms: Another common mistake involves under or over paying taxes. The reason for this is often incorrect filling of tax forms. This is why it is of paramount importance to automate the entire payroll and taxation process.
5. Fumbling to Maintain Correct Payroll Records: No business would want to have expensive audits that are required when the management and HR department fails to maintain proper payroll records. This calls for having a centralized payroll system in order to have everyone in the HR department on the same page. These records include timesheets, tax forms, tax numbers, PF details, etc. Also, pulling out any of these records is just a click away with a centralized payroll tool.
These mistakes are a huge spoilsport hampering a company’s attempt to nurturing a content workforce and efficient HR department.
If any of these above-mentioned mistakes sounds familiar, then it is time to rethink about the way you have been processing payroll all these years. Reach us today to know how a cloud based payroll software can transform the way you manage this important process.