Most Common Payroll Bloopers that you Need to keep at bay!

Payroll Bloopers
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Payroll undoubtedly is one of the most crucial aspects of any business and you certainly can’t afford to get it wrong. When businesses particularly SMEs and start-ups opt to manage their payroll in-house, there is always room for tedious challenges hindering accurate and seamless payroll processing.

There are various blunders committed by businesses when it comes to payroll processing and here is a checklist for few of the prominent and the most common bloopers that can take your start-up on a bumpy ride.

So without much ado, let us hop onto all those mistakes that you ought to avoid at any cost. We refer to these blunders as strict don’ts of payroll.

  • Never settle for an interim payroll solution

This is one of the gravest and common mistakes committed by small and mid-size businesses. Though it is common among SMEs and start-ups to process salaries (often managed and processed via some legacy or entry-level payroll system) in cash during the initial few years, this certainly is not a robust solution for long run.

Thus, it is wiser to get all the payroll operations sorted right from the day you kick-off your business. Having an automated and future proof cloud based HR software will help in quick salary calculations, generating payslips automatically as well as in automating tax filing. It indeed is a stitch in time!

  • Blunders in Bonus and Increment Calculations

It is a common practice for businesses to give out bonuses and increments to their employees on a periodic basis. Unfortunately, manual computation of bonus or increment is prone to having incorrect numbers.

Also, when calculating and processing manually, accountants and payroll processors tend to overlook any change or new tax rates/reforms, leaves taken, etc. The primary cause for this blunder is working on outdated payroll system.

Cloud based HCM software on the other hand with excellent formula based calculation and automated abilities can well address all these issues in a seamless way. So no more incorrect calculations and irked employee faces!

  • Processing payroll at wrong time

As a business starts to gain foothold, it is deemed to commit the mistake of running payroll too late or too early. This could trigger critical payroll problems such as overpaying or underpaying its employees, which occurs mainly due to incorrect calculations.

To stay clear of all such problems and save a great deal of time, money and resources, it is always a wiser move to have a cloud based salary software for a redundant and error free payroll processing.

  • Forgetting to file taxes on time

Another common and serious mistake is forgetting to file taxes on time. This often results in the company paying huge amount in penalties and late charges.

This is not the case with a cloud based payroll software, as it automates tax filing and also sends notifications on a regular basis so that your accountant doesn’t miss out on important tax deposit dates and updates.

A tested and leading payroll software can do lot of other things besides helping you pay your employees on time. Talk about automated leave management, time and attendance tracking, etc., the software does it all.

If any of these aforementioned mistakes sounds familiar to your business, then it is time to think about replacing that legacy payroll system with an advanced one. Reach us today for a free demo and see how our advanced cloud based HCM software can transform the way you process and manage payroll.

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