Too often, it’s easy to overlook the minutiae of payroll processes, which can result in costly errors and time-consuming corrections. Even the smallest of payroll slip-ups can snowball into long-term issues and increased expenses, especially if those mistakes continually occur. Seemingly minor reconciliations—such as correcting W-2s, amending tax returns, or adjusting for late deposits—can waste time and valuable resources. Additionally, some blunders make organizations vulnerable to regulatory fines and penalties.
The good news: most common mistakes are avoidable. Auditing, testing, reporting, and other “checks and balances” can confirm that your payroll is accurate the first time. But when mistakes happen, it’s important to determine what occurred and why, and then identify the root causes so they don’t happen again.
Continue reading to find out more about best practices in payroll processing and avoiding the pitfalls.