When there’s no sign of any payroll problems, everyone, including upper management and executives, assumes that things are working just fine. But just because things seem fine doesn’t always mean they are. The sad truth is that often, major, hard-to-repair payroll issues have to happen before companies realize just how deep their payroll issues really go. In fact, a recent study by Nucleus Research showed that payroll errors averaged nearly 1.2 percent of total payroll costs.
Payroll issues are usually only brought to someone’s attention when there is a very large error, such as an overpayment of more than $20,000, or a tax audit because the company failed to pay something correctly. Audit findings are another common place where you can catch mistakes. By the time most of these incredibly detrimental issues come to light, it’s too late for any prevention—they are already a catastrophe.
When payroll processes aren’t flowing smoothly or aren’t in compliance, the signs will eventually show themselves. It’s a ticking time bomb, and when it goes off, the results can be exponentially more expensive than any overpayments and fines….