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
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
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
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.
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
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.
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
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
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.