Payroll Process and the Risks to be Avoided
- HRMS (HR & Payroll) July 31,2019
Human resource management has always been struggling with payroll and resource management. Even in KSA and UAE, it’s a trouble and organizations require proper check and balance. Organizations consider that if they pay their employees on time, then they have an efficient payroll process. Processing payroll is probably the most complicated task for any organization. Complications concerning tax regulations, compliance, and employee benefits can ruin the accuracy and timing of your payroll system. There are many risks in manually running a payroll setup, which is why it’s best to leave payroll processing to an HR and payroll software . To avoid human errors its necessary to rely on a good payroll software
Here are some of the common risks to be aware of and hr payroll software can help in them:
Make sure to calculate overtime correctly for the employees. Even if your employee works out of the office or is on any business trip, you have to calculate and pay. Every hour which is spent on work purpose is to be calculated and paid. Payroll software’s help to keep track of timings and do not let any hour get missed from records. When employees get paid properly, they love to work with more devotion.
Human errors are common. Somehow If you fail to pay an employee properly this pay period such as incorrect hours, missed bonus payment, or forgot a pay raise). Immediately process retro pay promptly and document what you did, just in case. With hr payroll software get free of documentation issues, everything automatically gets up.
Pay Stub Information
Failure to Document Required stubs can cause lots of difficulties. It will also take a lot of time to gather information at the time when an employee will demand its stubs. It is an excellent option to keep a check on every detail of employee payment. Payroll software’s save record of every detail and deduction to avoid any confusion on the required time
Not Managing Payroll Records Properly
Records must be kept enlisted and should be provided to employees if they demand. If you do not manage them correctly, you are always at risk. Without adequately managed records, you are even unable to process bonuses, pay raise, and other necessary operations. Also, if a piece of single information is missing, it can lead to massive miss management. Other than this employee confidential information, like an employee, Social Security and information’s should be kept secure. Payroll software helps to manage every record step by step and keeps them safe in records.
A payroll audit is a risk and a massive headache. Any mistake could result in significant errors, back pay, and penalties. You need to conduct regular workflow analysis where each step is analyzed from start to end. Mistakes can include incorrectly classifying employee type, which could result in wrong tax status, withholding taxes, or forgetting pay raise after it has been granted to employees. By using a payroll solution, many such mistakes get avoided, and these systems keep on check at every step to prevent mistakes.