The fact that payroll is about money makes it easy to understand that business owner or HR staff would avoid any payroll errors. The most common payroll mistakes by small-medium business, such as miscalculation and inaccurate tax payment, will cost company money and bring serious impact for the business. The mistake itself can cause a financial penalty and require more time to correct it.
Now let’s see it from the bigger picture!
Any payroll mistakes not only have financial cost to your company, but they also have more critical impact that isn’t easily calculated and not everyone might fully aware of: the impact they can cause to your employees.
Your employees wait for their paycheck to pay for their living expenses, transportation, rent, or to simply do saving for their retirement days. Many people lives depend on the paycheck. So that when you do a mistake such as underpay your employee or having an inaccurate amount for their tax payment, it will bring headache not only for employers but also for employees. The mistakes can cause them a missed payment and money issue that may affect their ability to come on time at work.
Furthermore, having many errors might cause you losing your best talents. Keeping a good talent is not always easy for companies and a serious mistake can make it even harder to retain employee. As one of the touch points between employers and employees, payroll plays a significant role in retaining your employee. Because when payday doesn’t go smoothly, in the long term it can bring down the trust your employees have in your company. A talent possibly look for a new job because he experienced several payroll errors that may put him in financial crisis. Moreover, if payment issue spread out it can influence company branding and not to mention how it will be hard to hire new talent. After all, the errors will always put your business in line.
So, with the effects payroll errors have from both financial and employee perspective, it is important to ensure that payroll process works well and on schedule. The best way to make sure it works well is to close the gap in the process where human errors might creep in. Company can use an automation technology to solve the complex process of payroll calculation and make sure that there’s no incorrect data related to payroll that later can hurt your people.
A cloud-based system helps you to reduce human errors that might occur during the manual process by paper and pen, then automate the entire process flow from attendance taking to eventually payslip release in one solution platform. The automated system also stay up-to-date with the employee regulations and make sure to records and back up payroll data in the cloud system. So that you it will be easier for you to search for payroll documents or employee payment details every time you need it.
The HR and payroll system of HRMLABS can help Small-Medium Enterprise owners to manage their business easily in several clicks away without any more headache on administrative tasks. A good practice will satisfy employees and enables company to retain talents.
Identify the best solution for your business and contact us to request demo!