Everyone understands the importance to have timely and accurate payroll solutions. This helps a company to build reputation among the employees and also to keep away from IRS notices and fines. However, inaccuracy in payroll can happen due to various reasons. Some of the major problems that result into inaccurate payroll results are mentioned below:
- Running Payroll: Running payroll on time is important because delaying in this process will automatically result into paying your employees late. This reduces the loyalty of employees and reduces their morale. Therefore, it is essential not to miss deadlines due to any reasons.
- Software: Online payroll system is entirely based on payroll software. If the payroll software has glitches, it will tend to give inaccurate and delayed results. Therefore, payroll software must be well-tested and checked to ensure accuracy.
- Staff: If the online payroll company doesn't employ a team of payroll experts, it is evident to have payroll errors due to less experience and expertise in dealing with complex calculations.
- Saving Records: As per HMRC guidelines, it is mandatory for a company to keep payroll information for seven years. If the payroll service provider fails to provide payroll records for audit purposes, it can lead to hefty fines. Therefore, make sure that your payroll company has secure system to save company payroll records.
- Back-up System: The online payroll system is a SaaS-based product in which the entire company information is secured on a hosted server. Therefore, it makes more important to have secure back-up system and disaster recovery plan to keep the payroll details secure.
- Software Incompatibility: The entire payroll system is processed with the help of Internet. Therefore, it is important for a payroll firm to be compatible with clients' software to receive the information in exactly the same format as the client wants to pass it on.
- Payroll Tax-Filing: The companies which are not up-to-date with federal, state and local payroll taxes always fail to file payroll taxes accurately. And, inaccuracy results into hefty fines by the IRS department.
There are various online payroll companies that offer reliable payroll services to small-business owners. It is important to ensure that the company has efficient process to keep your company away from above mentioned problems in processing payroll. Moreover, there is little care required while deciding payroll features that need to be added within your plan for good results.