While most companies strive to ensure their employees get paid on time, mistakes often happen. If you have ongoing payroll errors that don’t get corrected, you could have a major liability on your hands.
Payroll errors often occur when the employees responsible for payroll make mistakes, or if time and attendance tracking is not accurate. Another potential problem is if the team responsible for payroll is not updated on the latest laws and regulations related to payroll. A mistake here or there will be understood by employees, but ongoing mistakes can lead to employee morale issues and potential lawsuits.
In recent years, employees have brought class action lawsuits against large employers (like Walmart, Sainsbury and Asda) who have not paid employees for working through lunch breaks, overtime pay, bonuses, and new lawsuits have been brought for gender pay inequality. The resulting fines and penalties are devastating for company reputations, and cause mistrust amongst employees.
One of the best ways to ensure your organisation is up to date on recent legislation is to utilise a payroll software to manage and automate payroll processes. Payroll software plugs into your accounting and time keeping systems, ensures accuracy, and is updated each time new legislation changes are made to payroll regulations. Payroll reporting is another great feature of online payroll software. You have access to customised reports, real-time view into your payroll costs, and can quickly make changes based on current trends.
Managing payroll should not be challenging – reduce your risk of costly errors and staff ressources and simplify your operations with payroll technology solutions. Click here for more information on payroll tools to help your business.
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Payescape Limited is authorised by the Financial Conduct Authority under the Payment Services Regulations 2017 (register number 821826) for the provision of payment services.