7 key practices to ensure accurate payroll processing

HR Insight

We’re sure all employers want to run timely and accurate payroll processes. But not all of them have these handy tips to make their work easier!

Have you ever got a complaint from employees due to salary errors? Isn't it very frustrating and time-consuming to fix these numbers after the nerve-racking calculations? Not to mention this also adversely affects employee satisfaction. Then, ensuring an accurate payroll should be the top priority of every employer.

But it’s easier said than done.

HR professionals like us have already had a full plate these days, so how can you proceed an accurate payroll?

Classify your employees correctly

Seem to be obvious, but lots of newly minted employers overlook the first simple step to save some time from the mess of paperwork. This misclassification leads to severe consequences: incorrect pay, failure to withhold taxes, a penalty by the government, etc. Whatever happens, you’ll surely need to spend more time – and, of course, money – to tackle these problems.

We understand that classification rules are complicated, and most business owners are not legal specialists. If you’re in this situation, just seek advice from HR experts!

Use the right technology

Paper timesheet is hard to organize and record, also more likely to make human errors. That’s why when it comes to optimizing payroll management, technology is a must-have to ensure accuracy.

Depend on your needs, business size and budget, shop around for appropriate payroll software. Set it up properly once, then you never have to worry about manual entries or miscalculation. Plus, payroll automation guarantees higher levels of data protection.

Keep up with legislative changes

Did you notice that the Vietnam government change the minimum wage almost every year? And now they’re about to raise the family circumstance-based reduction upon personal income tax?

Payroll is changing all the time. If you run business internationally, things get even more complicated as each country has its own rules, and you should always stay in the loop.

How can you keep up with continuous legal changes?

You can gain valuable insights and updates by attending payroll conferences, webinars, seminars, or similar events. Subscribing to the newsletter from government sources or payroll experts also helps enhance your knowledge.

If you’re working with a payroll software provider or payroll outsourcing agency, they’ll also offer advice on related changes.

Conduct regular payroll audits

Quarterly or annual payroll audits ensure that you were – and will be – running accurate payrolls.

Here’re what you need to look to in audit trails:

  • Check if wages are calculated correctly.
  • Verify that taxes and deductions are withheld and paid at the right time, to the right parties.
  • Review employees’ data, as their personal information can change regularly and probably will affect the payroll.
  • Validate any unusual payments and ensure they’re linked with supporting shreds of evidence.

Sure, it takes time and effort to run an effective payroll audit. But if you want to do payroll accurately, don’t skip this!

Collaborate with your employees

Spotting payroll mistakes shouldn’t be the responsibility of only one person. Instead, involve more people - who always notice these numbers - will bring better results.

But where can you find these “payroll polices”?

Don’t need to look further, as they’re your employees! Just provide them a transparent and formal report process. Then they can quickly notify you glitches and discrepancies even before you realize there’s a problem. Errors will be solved before they become worsen.

Create a checklist

What should be on this list?

First, all tried-and-true procedures, practices, and tips should be recorded. Then anytime needed, you can go through this list, review each point, and ensure everything is right.

Plus, include data of new employees, pay changes, and updates related to payroll. Try to organize this section by pay period. Later, when you’re working on the payroll for that time, you can quickly double-check if all these changes are input to your system correctly.

In case you’re overwhelmed with so many things to do, consider outsourcing payroll functions!

As we’re adapting the new normal, most of the businesses exert themselves to restart operations and cope with unprecedented financial challenges. If you also experienced this crisis, do you still want to slog through complex payroll processes?

Don’t let payroll become a bottleneck. Instead, leave it to the pros – payroll service providers. They know how to run an accurate payroll. They are familiar with all problematic aspects of payroll audits. They always stay on top of fast-breaking compliance changes. In a nutshell, they save you time while still conducting all the procedures perfectly.

As a leading Recruitment, Payroll and Staffing agency in Vietnam, we know how to support each clients’ unique workforce. Send us your inquiry or call us now, we will get back pronto!

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