The human factor can cause payroll disharmony

Cloud-based accounting software and other automated payrolls systems have put pay to the old inefficiencies of paper-based payroll systems. Nowadays, if there is an issue over payroll, nine times out of ten, it will the ‘human factor’ that has caused the fallouts.

Here are some of the more common ones and how they can be rectified to restore harmony to the payroll.

Incorrect or late payslips – Double-check calculations and run test pay runs. Issue payslips to employees paid in cash.
Wrong tax calculations – Seek advice from an accountant or bookkeeper, keep accurate records, and be clear about tax rates and calculations.
Failed to pay HMRC on time – Set up a direct debit and contact HMRC to arrange a payment plan if needed.
Employer National Insurance contributions (NIC) not paid – Be aware of payment deadlines and keep accurate records.
Missed pension payments – Set up automatic payments, set reminders, and stay on top of employee contributions.
Employees underpaid or not paid at all – Rectify the problem as soon as possible and pay back any owed wages.
Wrong deductions made from wages – Have a clear and accurate payroll system in
Unauthorised overtime not paid – Ensure employees are aware they need prior approval for overtime, rectify any missed payments as soon as possible, and put a process in place to avoid future problems.
Expenses not reimbursed – Have a clear expenses policy in place, set up a system for processing claims, and have enough money set aside to cover expenses.
Not keeping proper payroll records – Put a system in place for keeping track of payroll information and ensure it is easy to use and maintain.
By following these tips, employers can avoid common payroll problems and keep their business running smoothly.