Employee Happiness Quotient is directly proportional to HR management services. It is the responsibility of every business to ensure that employees are accurately compensated for the number of hours they have spent working. Despite this well-known requirement of running a business, workers do not always receive the full amount of wages they are entitled to.
Getting to see the salary in the account at the same time you’re expecting is something that every employee would want. High expectations are always there when it comes to getting paid on time and being paid the right amount. Payroll has its own complications involving payroll calculations for some reason even the most experienced HR/Finance professionals sometimes can make a mistake.
Paying employees in a timely and accurate fashion is an important part of keeping them satisfied with their jobs and willing to work for your company. Since it is up to HR to help retain valued workers, it is in the best interest of the company that they are paid what they are owed. It is also an important step in legal compliance.
There are countless stories of controversy between payroll managers and employees on this subject and the damage caused by incorrect payroll processing or late payroll processing is very difficult to measure in HR terms as it affects the reputation of the company plus its relationship with its employees.
Imagine a world where payroll processing for all your employees has zero errors, consistently, for every payroll cycle. With payroll related issues reducing to zero and satisfied employees can focus on delivering value to help your organization achieve its goals.
Using the right tool makes all the difference. Opt for a process which will benefit both employees and payroll managers. The payroll system should serve as single window for all the payroll related needs of employee as well as HR managers.
Employees become happy because they have a clear visibility of their payroll, deductions, taxes etc. and HR managers are happier because they don’t have to dig out pile of papers to create and present reports and life gets simpler and easier for everyone.
There is a lot of value to timely and accurate payroll. Employees are happier, which often translates into happy customers and happy customers can mean more profits and new opportunities for business. Accurate & on time payroll leads to the following end results:
Employees with direct deposit expect their full wages to be in their bank accounts by payday. Employees without direct deposit anticipate receiving an accurate live check or alternate payment come payday. Correct payroll calculations ensure that employees are not inconvenienced financially on payday.
Employer and Employee Taxes
You must pay the money you withhold from your employees’ paychecks for taxes to the respective administering agencies. You also must file reports with the agencies to report the withholding. Improper payroll calculations can mean paying the wrong amount to the agencies and your employees’ facing problems when they file their annual tax return. You also have your own share of liabilities that you must pay and report. Failure to properly withhold, deposit and report employment taxes can lead to fees, audits and civil and criminal penalties.
Wage and Hour Compliance
According to the law, you must pay your employees at least the required minimum wage for their time worked. Additional laws apply to different areas of compensation. Failure to compensate employees according to law may lead to audits and penalties from the labor department.
Through payroll accounting, you record, track and monitor your company’s payroll expenses. Your human resources staff tracks certain paycheck deductions, such as health insurance and retirement plans, and paid time off, such as vacation and sick time. When payroll calculations are accurate and on-time, it helps to streamline payroll, accounting and HR.
After all the people working on payroll are humans too so mistakes are likely from time to time. However, habitual errors may foster mistrust in your employees and cause them file a complaint against you to the labor department. Under federal and state law, you must compensate your employees by the established payday, so if you make payroll errors, resolve them promptly and effectively.
If you’re a start-up ask us for audit and we will help you manage your payrolls better. Speak with a DKM Group Representative at +91 11 42597777 or click here to book an appointment with us or send us an email at firstname.lastname@example.org