Whether you are an owner of a small enterprise or a multinational company, it is your responsibility to keep a check on the calculation and processing of your employee’s payrolls. However, these are the activities that are performed by your HR or accounting department, how many times do you check that the gross salaries and tax deductions have been calculated correctly? Possibly, not frequently right?
Today, many employees have been acknowledging the fact that companies do make minor and major errors while preparing the paychecks to be paid to them. And therefore, allege the companies for keeping them at loss when it comes to paying them their gross salaries and filing the taxes to the state. To avoid IRS penalties, you must ensure that your concerned department is very careful with the complete process of employee’s payroll calculation and procession. For this, we have prepared a list of most common mistakes that companies make while handling bulk paychecks:
- Not acknowledged with the latest updates of laws and regulations regarding Federal, Local and State TaxesWe understand being a CEO, you might not be having enough time to stay updated with the latest and recent ongoing trends or guidelines released by the government. But it is crucially important to at least have an ear of it, so get the complete information of it from any professional payroll outsourcing service company in Delhi or anywhere in India as they are experts in this domain and can explain you things better. It enables you to track your HR department whether payroll management is complied with the latest guidelines or not.
- Not processing payroll timely and carefully results into unhappy employeesAs discussed earlier, an unhappy employee is one of the biggest threat to your business and firm. If your employee has been under-paid or not paid at all for last two or three months because you were too busy in your business affairs, then this is the sign that you are going to be in a little trouble. So, in such cases, you can opt for payroll outsourcing service company in India because professionals are known for their dedicated work and timely processing of employee’s payrolls.
- Not calculating overtime and regular work hours consistently for each employeeInconsistency! Well, these are the most common mistakes that companies make. You have defined different set of rules for calculating the overtime shifts as well as regular ones. But because an inexperienced auditor misinterpreted it once and prepared incorrect payrolls, there has been set a new modified version of the payroll calculation formulas. So, either you over pay one employee or underpay the others. Where is the solution? Seek guidance from expert payroll consultants in Delhi who can clear all the mess in your payroll processing system.
- Not believing the accuracy of payroll technology for your small scale industrySo, you have this preconceived notion spinning in your head “why should I take on this costly payroll software for managing payrolls for only 20-30 employees when I can do it manually?” If you count the strength of your firm on the basis of your people and not upon your annual income then you are at fault. Payrolls managing software may appear expensive to you at first but you begin valuing it once you see a clear cut process of payroll and text management. No manual errors, no incorrect calculations! All your 20-30 employees will get paid with exact salaries.
So, how many mistakes have you been making all this while? Check with your HR and accounting department and clear the scattered records! If you find it daunting, opt for payroll outsourcing service company in Delhi and give the charge to payroll experts.