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Payroll Mistakes to Avoid

Scrabble blocks spell payrollIf there is one thing that you don’t want to mess up in a business, it’s payroll. Employees having issues with getting paid reflects incredibly poorly on your business, and reduces employees’ faith in management to effectively solve problems. For this reason, it’s important to dot your Is and cross your Ts to avoid these very crucial payroll mistakes…

Getting payroll out late

The number one most important goal of payroll is to make sure that your employees get paid when they are expecting to get paid. When an employee doesn’t get paid on time, it corrodes the social contract between employee and employer and is almost assuredly going to affect performance, if not breed outright resentment. Always make sure that payroll is processed on-time, or even early, if you feel like something might come up that could delay it. Payroll assistance and processing services can help make sure that this is a headache you never have to endure.

Sending out the wrong amounts

There are a variety of reasons that an employee may get the wrong amount sent through their payroll. Perhaps there was an error when their hours were entered, or perhaps they made a mistake in their reporting. Either way, it represents a problem because your employees are understandably going to be very unhappy if they are underpaid. On top of that, if you overpay your employees because of an accident of your doing, it can be extremely complicated to ask for that money back.

Forgetting about bank holidays

One reason why payroll may get to employees late is because there are bank holidays that delay the processing time. Make sure that you get payroll processed early if you are near a bank holiday. Here are some examples of bank holidays that can be easy to forget about:

  • Martin Luther King Day
  • Presidents’ Day
  • Memorial Day
  • Labor Day
  • Columbus Day
  • Veteran’s Day