Payroll Services: Avoiding Costly Errors
Whatever the size and function of a business, effective and accurate payroll management are crucial. As payroll is such a complex task, it is easy to make mistakes: the consequences of such mistakes can be extremely serious.
Unless highly experienced staff members (who demand very high wages) manage payroll in house, the scope for errors is enormous. One of the biggest pitfalls is the misunderstanding of vital pieces of payroll legislation. This legislation is subject to frequent change this may go unnoticed by employees working on the payroll in house. Without a doubt, the best solution is to allow an experienced, dedicated and BACS-approved payroll management service like that offered by Bachmann Group.
Payroll errors can have serious negative effects on the health, stability, performance and reputation of a business. Common errors include:
Incorrect Payment of Tax
Overpaying tax, while less serious than underpaying, results in unnecessary extra admin work and impacts the cash flow of a company. If underpayment has occurred, this can mean that a large cash sum has to be paid out unexpectedly, causing financial problems. In addition, HMRC charge high-interest rates on money owed.
Late Payment to Employees
Employees are entitled to receive the money they have earned promptly. Late payments can cause a great deal of stress for employees, who may find that their Direct Debits have not been paid, card purchases being declined and other such issues. Employees who are subject to this avoidable stress will have a low opinion of the company they work for and their work will suffer as a result. They may even choose to find a more reliable employer.
Incorrect Payment to Employees
An employee is certain to report being underpaid. On the other hand, only a small percentage of employees are likely to report an overpayment: this was confirmed in the results of a survey published at onrec.com, a leading online recruitment resource. The majority of undetected errors will therefore be those that cause the employer to lose out.
Whatever the type and scale of a payroll error, correcting it will require precious time being taken up by administration, ultimately resulting in expenditure that could have been prevented by simply choosing payroll services from Bachmann Group.
Please browse the Bachmann Group website for more details about our world-class payroll management services. To discuss the unique requirements of your business and its payroll, please get in touch with our dedicated customer service team.