November 15, 2018Coronavirus, HCM Consulting Support, Managed Payroll Support, Payroll & Tax Support
Every Penny Counts: The Major Implications Of Payroll Errors
Payroll errors and inconsistencies can result in serious repercussions for employees and employers alike. Here, the experts in Human Capital Management (HCM) and Payroll Management Technology at Wise Consulting discuss the implications of payroll errors and how to prevent these errors from occurring.
Payroll Errors Hurt Everyone
While any type of human resources error can lead to decreased efficiency or profitability for a company, there is perhaps none with more serious ramifications than payroll errors. Inaccurate payments have the potential to negatively affect employees and employers alike. Your employees rely on your Human Resources department to provide them timely and accurate paychecks that reflect the value of the work they have completed. When errors occur, employees may become unable to fulfill financial obligations, lose trust and engagement within the company, quit or even sue your company for breach of contract. As we’ve seen in recent news, mistakes within payroll may cast an unfavorable light on an executive manager’s ability to complete their duties, leading to resignation or even termination.
There are also financial considerations for the company; overpayments must be collected, and underpayments will lead to inaccuracies in payroll taxes at the end of the year, which could result in time-consuming, expensive audits by the IRS. When it comes to payroll errors, the stakes are extremely high, and companies must take care to avoid the possibility of payroll mistakes wherever possible.
Unfortunately, small payroll errors often go unnoticed until they have grown into major discrepancies. While human error is an inevitable part of any process within a company, there are ways to mitigate the chances that major errors occur within payroll.
How Can Your Company Prevent Payroll Errors?
Payroll errors can occur at any time, but they are most common when a company implements a new HCM and/or payroll Management software or process. With new payroll software comes new technology and a new learning curve, which can lead to a transition period full of errors and inconsistencies. No company should have to accept these mistakes as a part of doing business: instead, companies should seek out a payroll consulting partner to ensure that the software they have chosen is the right fit for their company and that the software can be implemented in an pain-minimizing and effective manner. By taking the additional yet vital step of bringing a seasoned consultant into the process, executives can ensure that not only is the implementation of the new software or process is successful, but most importantly, their employees are paid correctly and regularly, preventing lowered morale, employee turnover and even legal ramifications. Taking this step also provides safeguards to executives to ensure that both their job and their employee’s compensation is never in question.
Discuss Your Payroll Concerns with Wise Consulting
Wise Consulting, an independent firm that specializes in human capital management and workforce management technology solutions, was founded with a sole focus in HR and payroll. This means that companies have the opportunity to collaborate with professionals offering vast experience in these fields, ensuring that the transition to a new human resources or payroll software is smooth and error-free. Work with a company that empowers your human resources professionals to succeed in their use of Human Capital Management and Payroll Management Technology—contact Wise Consulting today to learn more about how your company can avoid the lasting damage that can come with payroll errors.
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