It can be a costly mistake if your employer makes payroll errors. If an error is made or someone’s payroll is inaccurate, you may be overpaid or underpaid and will have to wait five days for the company to process your payment. This does not only delay your pay, but it also costs the company time in trying to find the error and fix it time that could be better spent on more productive tasks. To avoid this costly problem from happening, here are some tips on how to avoid the costly pitfall of payroll errors:
5 Ways to Prevent Payroll Mistakes
Keep accurate records and be sure of dates.
When it comes to paying employees in a CPA accounting firm, time is money for both the employer and the employee. If your records are not accurate, you may incorrectly pay someone who should not have been paid or your employer may owe someone who has been paid. Avoid these costly mistakes by being sure to keep accurate records and being clear about the dates of when you want to pay.
Check with payroll administrators before submitting paperwork.
A lot of mistakes occur when an employee submits paperwork to his or her employer either via mail, fax or email. This causes the employer to make mistakes by not processing the papers when they should be or, more commonly, by processing them too late. To avoid this costly error, employees must check with the payroll administrators before submitting their paperwork for payment.
Be sure the signature on your paycheck is correct.
If you have a payroll tips error and you are unsure whether it was because there was an error in your paycheck or if you simply did not sign it, keep in mind that this particular error will cost your employer time and money to find out what happened in a CPA accounting firm.
If you cannot remember whether you signed your check, ask a friend or family member who was around at that time if he or she remembers whether you did. This is one of the ways on how to avoid the costly pitfall of payroll errors.
Use good time management skills.
It is no wonder that payroll errors are so common when, as employees, we get distracted by all the activities of our workday and forget to check out our paychecks as they come in. To avoid this costly mistake of misplacing your paycheck and not being able to locate it, make a habit of checking your check every night before you go home at the end of the day. This will ensure that you will always have your paycheck with you at all times even if you do not recall signing it.
Review your pay records every few months.
If you are an hourly employee, make a habit of keeping track of your hours each week and seeing if you are getting the correct amount paid to you at the end of each pay period. Reviewing your pay records will ensure accuracy in your current pay and will help prevent any future payroll errors in the future.
What are Payroll Processing Services
Payroll processing services are provided by companies whose role is to ensure that employers are paying their employees the correct wages and withholding the appropriate income taxes. Payroll processing services also make sure a company complies with state, federal, and local employment regulations and tax requirements.
Conclusion
Payroll managers are responsible for getting accurate pay statements and submitting them to the appropriate payroll departments in order to avoid mistakes. However, it is important for managers to know how to take steps when errors occur and how to avoid the costly pitfall of payroll errors as soon as possible. A mistake can be costly, but at least with these tips from payroll professionals, it will most likely not end up costing you.
