Irrespective of the business size, payroll management can be a headache for organizations. With various matters that need to be handled accurately, payroll is a complicated and time-consuming process. When working tediously to be compliant with various laws and provide salaries to the employees on time, there are chances that errors may creep in. According to the top HR consultants, there are certain common payroll issues that every HR manager should be aware of to tackle them effortlessly. Let us take a look at some these common issues –
- Late processing – One of the most common issues and most irritating for the employees is the late processing of payroll and delayed salaries. Payroll processing is one of those essential tasks that must be done both accurately and promptly to avoid any kind of inconvenience and dissatisfaction among employees. Failing to pay salaries on time leads to a decrease in morale and indirectly impacts the productivity of the employees. To avoid late processing of payroll, human resources consultancy experts suggest getting the details of work hours and attendance of all employees at least two days in advance to payroll processing date so as to not mess up in case of holidays or sick/emergency leaves of the employees who are processing payroll. In extreme cases, when a delay in paycheck cannot be avoided, it has to be communicated to the employees in advance and employees’ cooperation should be requested.
- Inaccurate payroll processing – At times, it can happen that employees are overpaid or underpaid unintentionally. If this happens once in a while, that can be rectified. However, if this issue is seen multiple times, it means there is a flaw in the payroll processing system and it needs to be cross-checked. HR management consulting firms insist that appropriate measures should be taken to calculate employees’ salaries accurately failing which, the organization would have to face serious consequences associated with employee morale leading to business development issues.
- Inadequate staff and backup – It is an absolute necessity for every business organization to have more than one person who is capable of handling the payroll process. Relying on just one in-house employee will lead to problems when the employee falls ill or goes on unavoidable leave. One of the best options to tackle this issue is outsourcing the payroll process to an efficient human resources consultancy that will provide prompt and accurate payroll solutions without the hassles of employing in-house staff for the purpose.
- Remote workers – There could be varying rules and regulations and kinds of incentives offered to different types of employees. The compensation and other incentives may vary from employee to employee depending on if they are permanent or temporary, working from the office or from home, full-time/part-time/freelance, etc. To ensure accurate paychecks to all employees, the payroll processing team should be aware of all the respective rules for different types of employment and pay accordingly.
- Miscommunications – Tax rates and regulations related to PF, ESI, etc. change from time to time. To ensure that there is no disappointment among employees and the paychecks are accurate, HR management consulting firms suggest communicating regularly to employees regarding changes in tax rules, bonuses they are entitled to, and any other kind of deductions from their salaries or policy changes. This will help minimize employee grievances related to payroll and increase the morale of employees.
Payroll processing is essentially number-driven and calls for exemplary knowledge on current tax laws and accounting procedures. However, it also needs people with exceptional HR skills because it involves dealing with people. Choosing the right HR professional is the key to an efficient payroll process for an organization. Consult Accuprosys, the best human resources consultancy for all your payroll needs.