Thursday, September 25, 2014

Avoiding Common Payroll Errors



Payroll processing is no easy task. If it were, you wouldn’t have to hire someone to do it for you. Unfortunately, however, even the very best professionals can sometimes make mistakes. As such, it’s wise for you to be aware of common payroll errors and to know how to spot and correct them.

One of the most major mistakes is simply classifying workers incorrectly. Exempt and non-exempt workers are eligible for very different things and putting even one employer in the wrong category can lead to unending hassle. Before you hand your list of employees over to your payroll processing team, check and double check each worker’s status. Then, before you send any paperwork out, check it again. You can never be too careful!

Also, keep in mind that you can’t just toss out old records. Even after someone stops working for you, federal law requires that you keep all of their records on-hand for at least three years. So, develop a good filing system for keeping older records and organize it carefully.


If you can follow these tips and be careful in all matters related to payroll processing and hire only the most experienced professionals to handle this all-important job, you should enjoy smooth sailing when it comes to your payroll.

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