Avoid Common Payroll Errors With The Help Of An Online Time Clock

Avoid Common Payroll Errors With The Help Of An Online Time Clock

If you’ve ever been involved with processing payroll, then chances are you’re familiar with some of the more common issues that can arise, such as underpaying an employee. In today’s current business climate, where every penny counts, it is imperative that your payroll process is void of all potential errors.

With that being said, here are five common payroll mistakes and what you can do to avoid them:

Not tracking employee work hours

To process accurate payroll, you must first ensure that you are also tracking employee work hours accurately. With the help of modern online time clock software, you can efficiently track when an employee arrives or leaves. This information can then be sent to your payroll system, which allows you to pay employees accurately for their time worked.

Not correctly classifying workers

As a boss in today’s age of the highly outsourced/ single engagement economy, you will likely be employing numerous independent contractors on a daily basis. The issue is that comes into play is that when employees are misclassifying themselves as independent contractors, which can lead to severe consequences. So it’s vital to ensure your workers are correctly classified before running payroll.

Not using an automated payroll service

Perhaps the most important thing you can do when it comes to paying employees is to use an automatic payroll service to manage your payroll. This will help keep you up to date with your employees’ income and enable you to calculate their deductions and withholdings accurately. You may also be able to save money by being able to get accurate tax preparation done automatically from a payroll system.

Not adhering to labor laws

If you are not consistently adhering to labor laws, not only can this impact your payroll process, but it can also lead to significant fines for your business. Before you even begin to process payroll, you should review state and federal labor laws to ensure that employees are being paid in compliance with the law.

Not paying your employees on a timely basis

Most businesses are required by law to pay their employees on time. The good news is that your payroll software may allow you to set up automatic payments to make your employee paychecks more timely. While you might have the option to do this manually, your payroll software might allow you to take advantage of the automatic options to pay them regularly.

The good news is that these numerous common payroll errors can be easily avoided, but you need to take action to protect yourself, your business, and your employees. Investing in an online time clock is just one way to help reduce these common payroll errors. An online timecard system allows you to track employee work hours, breaks, as well as any overtime incurred.

Many online time clock solutions also allow you to integrate with many payroll providers directly. This means that when it comes time to process payroll, you can quickly sync information with your payroll provider with a few clicks of a button. You no longer have to worry about manually transferring data, which can lead to potentially damaging clerical errors, as a timesheet management solution does all the work for you.

Payroll is one of the most essential parts of running your business. You can’t afford to let it slip through your fingers and allow these types of mistakes to happen to you. Make sure you’re aware of common payroll mistakes and how to avoid them. And if your company has the budget, invest in online timesheet software to accurately track employee work hours.

If you follow the tips outlined above, you’ll be in a better position to ensure that you are paying your employees the proper taxes and have the correct information regarding your payroll needs.


Nitya is a freelance content writer. She writes for many Blogging sites. She has 5 years of experience as a Content Marketer. She always researches on latest things on the Internet and inks out everything with blogging.

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