Payroll is an incredibly necessary and occasionally difficult part of employment. When you first hire your employees, you give them numerous complicated forms to fill out, and many of these employees may not even know what the forms mean.
After the fact, due to either technological or human error, there can be problems with these paychecks, stemming from erroneous delivery dates to inaccurate amounts. These are issues that some of your employees cannot withstand, as they depend on this money coming in at the right time with the right amount.
Here are some of the common problems with payroll, and how you can deal with them.
The Work Institute at Kronos Inc. has conducted a survey on common payroll problems and how frequently they occur. They surveyed 1,013 adults in three different categories: salary, hourly, and freelance/contract worker. There are a few problems that occur more frequently than others, and that have a deeper negative effect. Here are a few examples.
- Paid Late: While a late payroll might not feel like a large issue, it can greatly affect those living paycheck to paycheck, or those planning their purchases around receiving payment at what is supposed to be a fixed time. Paychecks can not only cause stress but economic trouble when they don’t arrive on time. 15% of hourly workers, 16% of salary workers, and 20% of freelance/contract workers have reported having this issue.
- Underpaid: For obvious reasons, not getting the salary you are expecting or you are due is a fairly egregious payroll error, and it’s more common than you would hope. This has happened to a whopping 26% of hourly workers, 15% of salary employees, and 20% of freelance/contract positions.
- Overpaid: This may not seem like a large issue, but being overpaid means that before cashing the check, the employee has to go to their place of work to get it changed. The amount of time may vary given how long it takes to verify the appropriate amount of pay. It is essentially equivalent to getting paid late, not to mention the potential harm to your business if you don’t notice that you’re overpaying a worker. This has been a problem for 6% of hourly workers and 23% of salaried workers.
These are not the only issues plaguing payroll, such as bounced paychecks or problems with direct deposit. In order to avoid these issues and misunderstandings, employers need ensure that their payroll is carried out flawlessly, with which a third party can help. Outsource your payroll to Count On That, and we will ensure a problem-free payroll, which means less stress for both you and your employees.