It is an essential component of every business, but many employees may not give it much thought unless there is a problem. Recently, this specific corporate procedure has made the news, but it hasn’t been for the best reasons.

Dallas County Payroll Problems Affect Hundreds of People

In May 2023, reports emerged that employees of Dallas County direct deposits were cancelled and will take weeks to fix. Some were not paid at all. Others were paid too much.

You expect to be paid for your work on payday and Dallas County are apologizing for serious issues with a new payroll system that have a significant impact on hundreds of workers.

Dallas County’s top elected official, County Judge Clay Jenkins, confirmed that there were payroll system problems that affected 200 county employees and hundreds of outside workers who were not paid under the new payroll system.

How payroll errors impact your people

1. Financial Issues

Payroll errors, like incorrect tax payment, underpayment, or delayed payment, can cause financial difficulties. Pay affects essential expenses like rent and transportation. Any mistake could lead to missed payments and financial hardship.

2. Increased Stress and poor health

Unmanaged payroll may lead to financial and emotional stress, potentially impacting an employees mental health. This could affect their work performance.

3. Lower Productivity

Repeated administrative errors could negatively affect employee morale. Low morale can decrease productivity and team spirit, which could create complications for the organization.

4. Losing Employees

Payroll errors can lead to loss of trust, resulting in employees seeking other employment. Repeated mistakes can especially lead to a high turnover rate.

5. Time Spent on Rectifying Mistakes

Payroll mistakes require time to correct. This diverts resources from other tasks and can impact your budget and overall financial health.

Avoiding Payroll Errors

1. Perform an Audit

Regular audits can catch and prevent payroll errors. This involves assessing your HR and payroll software to identify outdated, inaccurate, or insecure elements. Audits can uncover the causes of payroll mistakes and other issues.

2. Enhance Communication

Regular check-ins with your payroll team are necessary. Small errors should not be ignored but analyzed to prevent future mistakes. Regular reviews and feedback can help improve your payroll team’s performance. Remember to recognize their achievements, such as consistent and accurate payroll execution.

3. Verify Employee Data

Payroll errors can happen due to incorrect onboarding details. Using verification for new hires and their managers can solve this. This process involves confirming details such as name, national insurance number, bank information, etc. New staff can complete this online before they start with electronic signatures.

Remember, staff members might need to update their information due to life changes that impact payroll, like marital status, tax deductions, or address changes. Encourage them to routinely check and update their personal details. Payroll data security is crucial. Without proper safeguards, your data can be stolen, and manual payroll can lead to fraud. By integrating an HR solution with your payroll system, you can enhance data security.

4. Equip Your Payroll Team

If you have a payroll team, ensure they receive regular training and updates on legislative changes. Even if you use payroll management software for efficiency, it is still your role to verify employee data. You might choose to outsource your payroll if your organization lacks the capacity. Payroll outsourcing companies have experts who stay updated with new laws and can help save time and money while ensuring accurate and timely payroll.

5. Use Payroll Software to Minimize Errors

Manual payroll tasks are prone to human errors and can be time-consuming. Utilizing reliable payroll software like XERO is an efficient way to prevent and identify errors. This software has features like error highlighting, bulk processing, and reporting options for accuracy and efficiency. Payroll errors can impact your business and employees negatively. To ensure accuracy, contact Bigger Bookkeeping now.

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