5 Effective Measures to Solve Payroll Problems and Reduce Errors
Payroll errors are difficult to rectify and they cost a lot to the organization- both implicit and explicit. Managing and dealing with the Payroll laws should thus be done carefully. In today’s time the HR department not only manages the assessment of employees, but also varied tasks that with ongoing time have become a part of their daily work which the HR department has to handle and cope with.
HR is all about the employees and relationships with people. HR has to maintain cordial relations with the team. It also includes having good relations with juniors and seniors alike. Apart from evaluating employee performance and deciding on the remunerations and incentives, there is a lot more that HR has to supervise and administer, such as satisfaction level among the employees, their wholesome development and career growth.

One of the most crucial areas that HR has to deal with is evaluating and according Payrolls. Each employee has various roles to perform and works for a particular period of time. On the face, it may appear to be simple and effortless, but it is not the case. The task demands vigilant and attentive review of the employee leaves, paid leave is a part of it. All additions or deductions must also be considered along with taking into account any expenses for which employees need to be paid for.
The organization has to pay a lot, even for a single minor error in any of the crucial areas of payroll. The solution is to spot the complex and complicated areas that are susceptible to errors and do all the necessary efforts to minimize them. Apart from this, the best option is to use a Payroll software which along with simplifying the process also reduces the errors by large amounts because of automation. The payroll software uses appropriate algorithms to rectify such problems.
Find out various Payroll problems and issues that the organizations face along with the ways to solve them.
1. Employee Classification and Categorization
Various types of people work in an organization. Thus their classification and categorization ought to be crystal clear because their remuneration and pay will be decided on that basis. For instance, permanent employees of the company are required to be paid regularly including paid leaves, whereas informal or temporary employees such as sweepers and guards need not be paid for the time they have not worked.
Apart from this an organization also takes work from contractual and part-time employees who are paid for the time they work and are associated with the organization. Managing such mixed and varied payroll increases the frequency of errors.
In order to avoid committing the errors, employee remuneration policy should be taken into consideration before the onset of the payment procedure and payroll software should be used to minimize these errors. InSyPay is a great software that you can try.
2. Track of employee attendance
Organizations with strict rules and regulations on employee attendance have remuneration system on that ground. Errors in tracking employee attendance which basically consists of hours worked will lead to blunders in the Payroll process.
The solution is to keep a regular and constant track of employee attendance including maintaining their log-in and log-out time for simplifying their pay calculation. This software is provided by Innova systems.
3. Employee Absenteeism
Based on the classification or categorization of employees, distinct leave policies are followed there in different organizations. Permanent employees are allowed more paid leaves than temporary or contractual employees. Different policies exist with regard to maternity and paternity leaves, medical leaves in different organizations. This increases the possibility of committing errors even more.
In order to reduce errors in this area, proper and valid documentation of employee leaves is must, inclusive of actual paid and unpaid leaves. The best way to solve this problem is with the attendance software provided by Innova systems.
4. Calculation of over time or other kinds of pay
Overtime by employees is common in organizations now. Various policies exist with regard to overtime remuneration of employees. These policies along with the overtime pay rate also differ from organization to organization. The most common method is to calculate the number of hours that have been worked extra by the employees either on a daily, weekly or monthly basis.
Methods of dealing with these payments are also different. Some of them are additional payments in the form of bonus or increasing the paid leaves.
To manage the overtime payments, the employer should have a crystal clear understanding of the organization’s policies and these should be taken into account before the calculation of employee salaries. Payroll software provided by Innova can take this burden off your shoulders.
5. Automation errors
Small organizations deal with the Payroll processes manually, on the other hand large organizations usually do it mechanically using computer software. Automation, of course, makes the process easier and simpler. But being entirely dependent on Payroll software and loading it with the data of thousands and lakhs of employees may result in software crashing down. It is thus advisable to keep the calculations done before hand to avoid such a situation. It decreases the load on the software and allows it to work smoothly, thus reducing the possibility of crashing down.