Payroll plays a large role in business for a reason. It’s the cumulative sum of all of the financial records for employee salaries, which includes their work wages, deductions and any bonuses. The crucial nature of payroll means that it’s imperative for companies to pay close attention to how it is managed under their financial departments. 

And while most of us (especially those not in the payroll industry) think this is a pretty straightforward concept of crunching some numbers and inputting them into a system, payroll is not in its entirety is not always foolproof. 

Processing employee payroll is still subject to various common errors, despite the time-sensitive nature of such finances. Here are some of the common payroll issues that companies tend to deal with. 

Using the Correct Deduction Amounts - Processing deductions from employee pay is considered one of the most complex parts of payroll. Laws are applied to deducting certain amounts from employee pay. Due to this, it’s easy for businesses and HR departments to make errors during payroll processing in regards to utilizing the correct deduction amounts. 

Not Classifying Employees - Correctly Many small businesses utilize several types of workers, including temporary employees, freelance workers and contractors. Diversity in worker types can sometimes lead to payroll issues. It’s important that workers be classified correctly for tax purposes, since businesses can be subject to paying their owed taxes along with any fines. 

Overtime Rules - Overtime generally consists of 50 percent of the employee’s typical hourly wage; in most cases, employees must be paid their hourly wage and the 50 percent overtime premium for each hour worked overtime. Due to the exceptions that overtime laws generally include, some payroll processors may be subject to mistakes. 

Keeping Up With Regulatory Changes - Over time, payroll regulations do change. Sometimes, significant changes may be made to how payroll is processed for businesses across the country. In order to avoid the payroll issues that may originate from regulatory changes, businesses should do their best to stay updated with regulatory changes that may occur in their state or around the country. 

While these are some of the more common problems in Payroll, having a HR and payroll outsourcing partner can give you peace of mind which exactly what Propay Partners promises. You can be assured that we will be keeping up with the latest regulations, providing information to you in a timely manner and helping you reduce both costs and liability. 

Outsourcing is the most pragmatic and innovative solution that companies are relying on to stay ahead of technology as well as excel in business


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