Payroll processing is among the processes or functions of a company that is a challenge as it’s prone to mistakes and incredibly time-consuming. Most businesses face this problem, especially in UAE wherein labor regulations always change. As you may know already, errors in the processing of payroll in UAE can be very costly to fix. In this article, we’ll provide you with the best ways in avoiding damaging errors with your business’ company payroll. Read on!
Payroll mistakes are simply mistakes. But, they occur most of the time due to incorrect inputting or onboarding of employee information. There’s an easy fix to this and that is to create several different verification processes. Employees and managers are to confirm new staff and existing ones have entered their name, bank account information, deductions, time in and out, and other details correctly.
Reminder: the staff members of your company can have life changes in the course of their tenure. This means you have to process the changes to employee information regularly. Aspects that often change with employees include marital status, deductions, benefits, address of employee, and change in position which can affect payroll processing.
Read More: How to Choose the Right Payroll Service for Your Business?
It is late at night already and you have had a stressful week. You’ve just ran your company payroll and you are having a hard time in reconciling employment regulations with the new requirements. Are you to give advance notice to employees for scheduling changes? If so, how much time are you supposed to give to employees?
This is just one of the problems of business owners in UAE. Staying on top and updated with all laws relevant to handling employees and running a business in UAE can be very tough. However, it is absolutely important to adhere to regulations and eliminate payroll mistakes.
If you have any questions regarding mandates on the local and national level. it is best if you consult with a company offering payroll outsourcing services in Dubai in order to make informed business decisions.
For new hires, you have to provide an estimate of when, how, and where they’ll be working. For schedules that have to be changed, you can talk to a specialist in recording schedule amendments and calculate the required predictability pay.
You may want to know: Payroll Outsourcing in UAE: Does it help save money?
A common mistake in processing payroll is often carried out by a business owner. For instance, you have given an employee a gift or bonus and you’ve completely forgotten to record this on the payroll. This well-intentioned award can negatively impact a staff member if he or she soon finds out that it is not in the pay slip.
The payroll process is not only time-consuming. It also results to oversights, missing key data, and miscalculations. This is from pulling crucial information from a lot of sources from timesheets, banking information, and spreadsheets. Not to mention the fact that organization and storage of records are a burden!
Rather than devote precious resources of the business in maintaining or managing company payroll, let payroll specialists that provide a service such as payroll services in UAE do it for you. A team of experts can run your payroll accurately. What’s more, they have the tools that can significantly reduce the time for you to manage timesheets, scheduling of employees, and more.
Find more info: How to Handle Payroll When the Business Can’t Pay Employees ?
Preventing payroll mistakes can also be achieved if employees are given the tools and resources that they need in communicating with you on any inaccuracies in payroll. If any of your staff members catch discrepancies in their payroll, set a formula process wherein they can report issues. Also, you have to provide your payroll team proper training and skills in handling the entire process of payroll so as to avoid any errors.
They need to know how to review and authenticate hours worked for every employee and properly manage all the information required for every pay period.
Processing of payroll inhouse is never a good idea. This is especially true in UAE as businesses of all structures and size deal with increasingly complex regulations. Complying with the changing regulatory environment proves to be a challenge on top of handling other aspects of running a business such as marketing, HR, sales, and other business functions.
According to recent polls, majority of businesses in the UAE have incurred expenses that weren’t intended from the fact that they have unknowingly violated government regulations. Businesses are fined and penalized and those that were hit hard were businesses processing their payroll in house.
Talk to Farahat & Co’s payroll specialists in UAE! There are many ways in which we can help with your company payroll processes.
Book a consultation today to learn more about payroll outsourcing services in Dubai.