1. Not double checking payroll information
Payroll is not something you can afford to get wrong, you're dealing with an employee's livelihood. If your resources are stretched thin and you're running up against the clock it can be tempting to cut corners here and there, going through payroll too quickly and not double checking important information like tax withholdings and hours worked.
Under or overpaying employees is a quick way to get on their bad sides. To avoid this make sure you allow plenty of time to process payroll and allocate extra time towards the end of the process in order to verify that all of the information is correct.
2. Processing payroll too late
It takes time to process payroll, even if your business is small. In many cases owners of these small businesses will choose to do the payroll themselves, and it's easy to underestimate how long the process will take or to get wrapped up in other important business and forget about it until the last minute.
Rest assured though, your employees will not forget about it when they start receiving late paychecks. Your employees expect on-time and consistent pay, as they should, and if you start messing with this you will quickly lose the trust of your employees. Using a professional payroll administration system that helps you keep on schedule is one way to avoid this costly mistake.
3. Not keeping up with changing regulations
There are a significant number of regulations that govern payroll like how much to withhold for income taxes, how much to pay for local taxes and how to calculate fringe benefits as income. These regulations are not always set in stone, and laws can change as time goes on. It is your job to keep up with all of this, and it's not an easy job.
Many businesses don't have the time and resources required to keep up with the law but failure to do so can have dire consequences, which brings us to our final mistake.
4. Trying to do everything in-house
In-house payroll administration can be right for some businesses, especially those with a complicated payroll or businesses with a collective bargaining agreement. However, for most others it is simply less efficient to take on everything in-house. Doing so can tie up resources better used elsewhere, or even worse cause costly payroll mistakes that damage your relations with employees.
The answer to this is to partner with a provider of payroll services. There are still many misconceptions out there about outsourcing payroll, but rest assured that it can be a great choice if you find the right partner. The expertise offered by these providers is invaluable when you don't have the resources to hire and maintain an in-house team.
At Summerlin-Roberts, we work with businesses of all sizes to come up with effective and affordable payroll administration solutions, whether you want full service, self-service or something in between. Please, contact us today to learn more about how we can help you improve your payroll administration process.