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Common Payroll Problems & How To Solve Them

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Every business owner needs to stay on top of their payroll processes. No matter how much your employees like you and like working at your company, they will start to turn against you if the money stops flowing. Error-free and seamless payroll processes will help you retain the most talented workers at your business while also providing you with fewer headaches. 

However, problems tend to pop up from time to time, especially if you are not using payroll software in Australia. Knowing how to deal with these minor glitches in the payroll process is important. With the right understanding of how and where things can go wrong, you will be able to keep on track, both for your sanity and for your employees’ good graces.

Let’s look at some of the most common payroll problems and some of the best ways to solve them.

Incorrect Hours Worked

Logging incorrect hours worked for your employees is a major obstacle to keeping your payroll process accurate. While your employees will likely not complain if you overpay them, they will certainly raise an eyebrow when they are not receiving their wages for the hours they did work. Keeping an accurate accounting of how many hours each employee has worked, and on which tasks, is important.

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One of the best ways to ensure these figures are accurate is to allow your employees to log their hours themselves. While you will have to check over these details to ensure that they seem reasonable, this will add another layer of verification to the process. It can be done quickly, and certainly faster than going back and fixing errors after paycheques have been issued.

Payment Delays

Timeliness is next to godliness when it comes to payroll processes. Getting payments out on time, and on a regular basis, is essential for maintaining employee morale. Unfortunately, if you are a smaller business, you may lack the capacity in-house to issue payroll payments on a timely basis. If it feels like you are always falling behind when it comes to paying your employees, then it is a good idea to hire out to another company specialising in payroll management. Alternatively, you can opt for payroll software that will help you get the job done faster.

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Errors In Deductions

This error is a bit more complex, but it is nonetheless highly important for business owners everywhere. Managing your payroll processes requires that you know enough about tax and other deductions to do this correctly and legally. If you make errors here, you may find yourself in big trouble.

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Deductions like wage garnishment are even more fraught with potential for disaster. And these are not the things that you want to be worrying about as the manager of a business.

To prevent any mistakes in taking deductions from your employees’ paycheques, start by using the right payroll software that is up-to-date and configured for your tax jurisdiction. You can also have a professional take a look at your payroll processes to ensure that everything is in good order.

Get Help When You Need It

Payroll processes are more complex than they might seem at first glance. Any business owner who is just starting out and working with new employees will know this well. If it feels like you are in over your head, then make sure to seek help when you need it. Whether this comes in the form of contemporary payroll software or the professional advice of a payroll specialist, it is important that you have some resources to turn to when things get confusing.