How To Ensure That Your Business Is Payroll Compliant
January 17, 2018
People have been paid for the services they offer and the jobs they complete for as long as humans have been in existence, and the concept of recording and tracking payroll is by no means a modern one. The way in which this is done has naturally evolved as businesses have, and payroll is now largely computerised and high tech. The laws regarding payroll have also evolved over time, and now more than ever, it’s vital that you remain payroll compliant to avoid costly penalties and disgruntled employees.
How easy is it to make payroll errors?
Payroll errors are as simple to make now as they ever were, but the price for these mistakes is much higher. No longer is a payroll error just a case of an employee complaining and the problem being rectified wherever possible; now it can result in serious financial penalties or even a court appearance if the matter cannot be settled amicably.
What are some of the compliance issues that affect payroll?
The problem with payroll compliance, is that legislation is constantly changing, and it can be hard to keep on top of things if you are not in the know, and do not understand the intricacies of payroll.One issue that can have a dramatic effect on payroll compliance, is failing to report the relevant information in a timely manner. Doing so can result in a fine for not submitting a ‘full payment submission’ or FTP, for sending the incorrect amount of FTP’s or for not sending an ‘employment payment summary’ or EPS. Penalties can also be incurred if the information that you submit is wrong.
Local legislation must also be accounted for by multinational companies, or those who complete payroll on a country to country basis, and a fully integrated payroll system is the only solution for remaining compliant in every country and territory.
What are the best ways of preventing payroll compliance mistakes?
Payroll software is a tried and tested way of avoiding any payroll mistakes, and this is whether you use the software yourself, or whether you outsource your payroll to a company who uses the software.
The software must up to date if you want to ensure that you’re compliant with the law when conducting payroll, and while it can be tempting to lower the cost by calculating payroll yourself, this is rarely successful, and employers often fall short of meeting all the necessary legislative requirements; or if they are compliant, they have had to put far more effort in.
Accurately tracking time and attendance - not to mention having an up to date and accurate record of absences, overtime and scheduling - is vital for effective payroll, and an integrated and automated system significantly minimizes the risk of compliance errors that could have a negative impact on your company.
Outsourcing payroll means that compliance issues are never your concern, and there is no safer and more effective way of keeping your employees happy and your business on the right side of the law.