Payroll errors cost your business precious time and money. Unfortunately, traditional manual payroll systems are extremely vulnerable to human and technical errors. However, a self-service payroll system is a great solution for preventing payroll errors. Today we’ll dive into how self-service payroll reduces payroll errors and drastically improves accuracy.
Common Payroll Errors
When it comes to potențial payroll errors, there are endless possibilities. Here are the most common payroll errors:
Manual payroll processes allow HR to incorrectly submit employee-given data. For example, they may attribute information to the wrong employee, misspell a name, etc. In turn, this can lead to weeks of hassle to transfer incorrect payments back and properly document the resolution of these cases.
Incorrectly tracked hours are frustrating for you and your employees alike. Manually tracking hours opens up the floor for errors. Employees may not write down the correct hours, HR may misread the hours and more. Inaccurate hours leads to inaccurate payroll. This can lead to overpaying or underpaying, both which have serious consequences on your business.
The time it takes to collect employee reporting for manual entry and the entry itself can lead to missed deadlines and fees as a result.
The Risk of Payroll Errors
The Internal Revenue Service reports that 33% of employers make errors that cost businesses billions annually.
Human entry error percentages may seem low at first glance at 4%, but over thousands of records, this can add up to big concerns for you. Just one clerical error cost Revlon nearly a billion dollars, so ensuring accuracy is paramount.
To avoid contributing to this number, ensure payroll is handled with precision. Reviewing before submission can help avoid unnecessary errors.
An even better solution is a self-service payroll portal. A self-service payroll system places more power and access into employees’ hands instead of relying on faithful reproduction by the HR department. Employees can view and enter their own data into the payroll system, and the system automatically processes payroll and taxes.
How a Self-Service Payroll System Reduces Errors
Automated payroll systems help by calculating payment, overtime and reimbursement. They also generate paychecks that users can sign in to review or print if need be in the future.
Self-service payroll systems allow the employees themselves to submit their information, and a system that checks this against existing records can help catch accidental 0s and more. With self-service systems, employees can carefully account for all their hours, providing an additional round of reviews and reducing the risk of human entry error.
Consider an automated self-service payroll system to reduce payroll errors. These systems are easy to use and incredibly scalable, making them an excellent solution for businesses of all sizes. Move away from outdated spreadsheets and triple-checking records by hand with self-service payroll.