How to Avoid Costly and Damaging Payroll Errors

Payroll management is one of the most challenging tasks a Manager or Human Resources Manager has to deal with. Without the right measures, there can be many errors that can threaten your company in the long run. Today, many companies and payroll managers depend on technology to make their work much easier. There are several ways through which you can avoid payroll errors, and they include;

Ways to avoid Payroll Errors

1. Boosting Security

Technology has made work far more manageable when it comes to the hard work involved in record-keeping. Furthermore, money disbursement can be done more accurately. One notable advantage of using technology is that it boosts your activities’ security as you can track all movements involving payment.

2. Proper Employee Management

There is no genuine employer who would want to deal with payroll problems, especially if their business is doing well. One of the leading causes of payroll problems is poor communication and the promptness to solve the issue. That is why, as a payroll manager, it is also recommended that you allow the employees to help you keep up with their records. You can do this by making sure that they can reach you easily. On your part, always ensure that you have taken the required action on time to avoid further problems.

You should know: How to Choose the Right Payroll Service for Your Business

3. Occasional Auditing

Auditors do more than what many people perceive. Companies deal with many bills and if money mishandled, employees can miss their salaries. Through an auditor, you learn more about your company. And you can track all expenses and inventory to the last piece. There are so many ways of conducting an audit for your company, including hiring some of the top auditing companies in UAE who are conversant with (GAAS), Generally Accepted Auditing Standards.

4. Proper Employee data management

Like any other kind of mistake, payroll errors can be due to forgetfulness or even double entry. All in all, it is crucial to have an easy data management system that makes it easy to enter, store and retrieve records. With the right approach, you can avoid making the wrong entries as the system can alert or request you to confirm the entry if need be. Using paper for payroll record keeping carries the main weakness of the records being easier to get lost or damaged.

You must read: Payroll Outsourcing in UAE: Does it help save money?

5. Prepare for Payroll

You will need to prepare early for payroll dates if you want to avoid any unexpected instances. That is why you will find some HR managers looking for a more simplified format to present the payroll data. This can mean using software to run some of the records like deductions, payroll register. And how much money needed to handle the payroll. It is easier to identify where the imbalance is way before the payroll date if it is in such a simplified form.

6. Proper employee categorization

A company can have different kinds of employees, including full time, part-time and even employees with special contracts. Each of these employees has a different payment system and requirement. Some are eligible to tax and other benefits from the company like allowances while some are not. Without correctly categorizing the employees with respect to their payment, you can end up paying the wrong person money they don’t deserve.

Payroll management can be a hectic responsibility, but the work can be manageable and less time-consuming with the right technology and strategies. There are times when you may be forced to postpone or stop a payroll process especially if there are discrepancies. If you ever find yourself in such a situation, you must let the parties involved, especially the employees and the tax collector. Failing to notify the concerned party can mean danger to your company because there is a strict penalty for companies that delay with tax without presenting any reason in UAE.

How payroll outsourcing companies in Dubai UAE Helps you

Farahat & Co offers payroll services in Dubai and can help you step by step through the entire payroll outsourcing services in Dubai. With a seasoned team and years of experience feel free to call us for any inquiries or primary consultations.