Due to rising costs, online payroll services are growing at an unprecedented rate. According to the PwC report: ‘Exposing the hidden cost of Payroll and HR Administration’, “organisations that outsource the management of payroll spend on average 27% less than those that deliver these functions using a manual approach”. So we find ourselves situated in the midst of the digitalisation age for business payrolls (especially small business). They are more efficient, less costly, and self-managed.
But even with the most advanced technology in place, it does not mean you are immune to errors and mistakes being made. It does not matter what size or what industry your business is in, you can never be completely sure your payroll is 100% accurate.
Here are some things you should look out for that can be overlooked by payroll. Sometimes it’s the smaller mistakes that lead to bigger problems down the track for you and your business.
- Don’t forget about bonuses. During the holiday season in particular, many companies like to pay their employees with a Christmas bonus. There is nothing wrong with giving a worker extra money, but it must be run through payroll just like their other wages do.
- Are they an Independent contractor or an employee? While some may think this is not an important detail, it’s very much quite the opposite. It is the responsibility of the company to determine which of these is put down, and inaccurate recordings of this can lead to trouble later on for the worker.
- Neglecting your new hire checklist. When ‘on-boarding’ a new employee, there is a lot to consider and if you don’t have a new hire checklist in place, complete with payroll considerations, you are making a mistake. Having this will make the payroll process so much more of a breeze for you.
Remember these are but three of the most commonly made payroll mistakes you should avoid – did you notice how easily resolved they are? Many others exist and can severely impact your business, just because of forgetfulness, laziness, or your system not knowing what to look out for.
A larger more established company will more likely have a solid payroll service in place, due to their experience. A new company generally does not have this luxury, and each will sometimes face varying issues related to the establishment size, growth and length of time in business.
Also remember that while some payroll mistakes may be quite obvious, others can lurk in the shadows and appear over time.
To make the decision that’s right for you and your business, take advantage of the knowledge and expertise that we at i3 Group are able to offer by giving us a call today on 1300 725 647.