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Get to Know The 5 Basic Payroll Errors and How to Avoid Them

Running an enterprise is never an easy affair. Several functions need to be performed to its optimum best for ensuring its sustainability and payroll is one of the key functions.The process of payroll management includes the calculation of employee wages, withholding deductions and taxes as well as maintaining records of the working hours of employees. Therefore, considering the significance of this task, you cannot afford to leave loose ends while managing payroll. Even minor mistakes in this regard can potentially cost you the faith of your workers.

According to reliable market analysis reports, 40% of small-scale enterprises end up paying close to $1000 as penalties.  And this loss financial resource occurs because of these common payroll errors mentioned below.Breeze through the article for a comprehensive idea of the five major payroll mistakes. Avoiding these errors will lead your dream enterprise towards unsurpassed feat.

·         Incorrect payroll setup

The foremost error in payroll processing happens to be its incorrect setup. Perfect setting up of your state, local and federal tax with holdings, medical care, social security taxes is critical while setting up payroll. Any discrepancies or lack of genuine efforts in this regard might result in the IT department or IRS fining you heavily.

·         Failure in maintaining paper check records

Mastering the art of handing payroll tax rules is half the battle won. However, you will surely not wish to lose out because you forget to record manual checks. A common occurrence for small enterprises, this particular payroll error, disrupts the balance of your business account books alongside disordering your tax deposits.

Therefore, while providing your employees with manual checks, ensure its inclusion in the record books too. And you must do this mandatorily, even if there is a time crunch.

·         Missing tax fund deposit deadlines

Collecting tax funds from employees is not the only job of a prolific entrepreneur. There is a need for timely submission. So, you must be perfectly knowledgeable on the stipulated period as well as the manner of depositing tax funds.

Other aspects include the mode of payments such as manual or electronic along with knowing the intervals of making these payments. Untimely or late deposition of tax funds can inflict fatal blows on your business growth. Steer clear of making late payments enjoy smooth running of your enterprise.

·         Absence of regular running of payroll

Additionally, you must also ensure the running of payroll at regular intervals. Your failure in doing so will result in underpaying or overpaying an employee.  And that will certainly not be something you desire.

A bit of vigilance, awareness and knowledge on payroll management will surely prevent you from committing such errors. Install a reliable payroll module designed by experienced human resource management software companies in India to overcome such errors. As an added advantage, you also get this module built into an overall HR and payroll software in India. For a more comprehensive protection against such avoidable payroll issues, it is best to enlist the tech competencies of Intellika to bolster your payroll process.

Team Intellika

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