To err is human.
However you might not want to err when it comes to your payroll.
There have been situations where workers have experienced issues with their paychecks at some point in their careers. A slip up in payroll calculation could end up with the employer getting sued and paying exorbitant fines. This is one aspect that every company needs to steer clear of.
Today payroll outsourcing has become a key business strategy for both small and large corporations who believe in devoting 100% of their focus on key business operations and outsourcing the rest to payroll vendors. While most companies across various industries swear by the advantages of payroll outsourcing, the debate still continues over its long-term sustainability.
Here are some of the common payroll issues that companies tend to deal with:
Keeping Up With Regulatory Changes - Over time, payroll regulations do change. Sometimes, significant changes may be made depending on how payroll is processed for businesses across the country. In order to avoid 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.
Late Payments - Employees need to be paid on time. When payroll is processed late, it in turn prolongs the transfer of funds to employees’ bank accounts. As you can imagine, this can be frustrating, and as a result, could dampen employee morale and productivity.
Processing Incorrect Information – This is one of the most common payroll issues that leads to employee dissatisfaction. Amending these errors sometimes requires a lot rework and time. 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.
Missing Deadlines - It is important to mark your payroll calendar with reports so that making deposits and filing payroll taxes can be done on time. Late deposits can result in hefty penalties and interest charges. Automating your payroll makes sure you never miss a schedule so that payroll is always processed on time.
Poor Record keeping & Data Entry - Poor record-keeping can cripple a company, halting efficiency, sucking up precious time, and causing unnecessary stress for employees. Your company could benefit from going digital, moving old records offsite, or just ramping up your current document management strategy.
Unable to Maintain Confidentiality - Payroll information should never be disclosed to anyone outside of the payroll department or the upper management. Such confidentiality should always be maintained so that your payroll is handled in a secure environment. When it isn’t, employees’ data are open to identity theft and other malware.
In recent years, many businesses who have elected to outsource the payroll and bookkeeping functions have benefited greatly from easy access to professional advisors, along with achieving cost and organization-wide efficiencies.
We have outlined below some of the important benefits to your finance team that can be achieved by outsourcing payroll:
Access to Qualified Professionals - At Propay Partners, when availing of the services offered by our outsourcing specialists, a business owner is gaining access to qualified advisors with expertise in many fields.
Provision of Valuable Reports on Timely Basis - We understand that it is vital for the continued success of all businesses to be aware of their financial position at all times. Business owners are as it is overloaded with work and dealing with the bookkeeping function of the business on a regular basis can be tedious. Business owners only review the performance of their businesses when the yearend accounts are produced. At this point, the information reflected by the accounts may not be current enough to be of any valuable assistance in influencing vital decisions such as cost control, or appreciating the impact of a change in the market.
Meeting Compliance Deadlines - Failing to meet compliance deadlines can have significant impact on your business and may result in penalties for you personally and your business which can cause significant headache for you and your HR & Finance team. Outsourced professionals will work in partnership with you to ensure that all compliance requirements are met. A timely reminder of pending submissions will be given and once the information is provided, outsourcing firms will use all resources available to them to ensure timely and accurate returns are made on behalf of your business.
While these are just some of the more common problems in payroll, having an HR and payroll outsourcing partner can give you peace of mind when it comes to your payroll services and this is exactly what Propay Partners does for its clients.
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.
