The Cost of Payroll Errors
Processing payroll is a critical aspect to your company. Employees want to assured that payroll is being properly calculated and that they are paid on time or production can be affected. There are many ways both indirectly and directly that payroll errors can prove to be costly for your company. Here are a few
Time (Labour) spent on correcting errors
Every payroll error that is made MUST be corrected. The payroll has to be accurate for taxation and recording purposes. The employee must be paid what they are due. That means that the time that that employee could have been doing something else is now spent correcting errors which in some cases can take more time to do that than the payroll had initially taken.
Interest and Penalties From Payroll Errors
It is important to ensure that your payroll calculations are in compliance with the law. Failure to do so can result in interest and additional penalties being enforced by the government.
Loss of Employee Trust due to late or short payments
Employees expect to be paid accurately and on time. When paychecks are late or short they will affect the lives of the employees. Employees will become dissatisfied with the company which can result in lower productivity and absence.
Cost of rehiring due to payroll error turnover
When payroll errors occur, particularly when they occur more than once, some employees will decide to leave the company. Companies must at that point seek to replace these employees which will incur additional costs in recruiting, interviewing and training.
Caribbean HR Solutions, as a payroll outsourcer, can aid in preventing payroll errors. Their experienced payroll staff will manage your payroll processes; making payroll seem easy. You can save time and money in your payroll process. Contact us at 1-876-971-7632 or email at email@example.com.