Are You Making Sure Your Business Is Minimising Payroll Errors?
Payroll errors can prove extremely costly to your business. A 2017 study from UHY Hacker Young found that HMRC had collected ₤737million in taxes and penalties within the last financial year, based on a crackdown on payroll tax errors. With 5.7 million businesses in the UK as of 2018, there’s a lot of businesses that aren’t fixing their mistakes efficiently. Furthermore, the payroll team often leave it to themselves to deal with the issues, leaving the CFO, CEO and other senior business members in the dark. So how can you ensure your business is minimising payroll errors?
When it comes to filing and databases, you can never be too careful. Make sure you have all your systems backed up, keep records for a minimum of three years, and keep a shared calendar with all HMRC payroll deadlines, so the whole team is aware of important dates and deadlines. Furthermore, it can be very beneficial to run payroll on the same day each week/fortnight/month, so that a regular routine is established, and mistakes are more likely to be considered abnormal, rather than slip through the cracks.
Employing a contingent workforce means there is often late/early starts, shifting roles and changes in hours and rate of pay. Overtime is particularly important to keep track of, as a Totally Money survey found that on average, workers were putting in 10 hours of overtime per week. Furthermore, taking time to understand changes in legislation can prove critical, as it ensures you aren’t getting caught when it comes to major reforms. An example of this is IR35, which is set to affect the private sector of the market. By being aware of IR35, you can implement changes in your payroll ahead of time.
Provide a ‘nudge’
While it may sound funny, the idea of a nudge can actually make sure that you’re not making errors by avoiding the need to catch up with timesheets and overtime payments after a payroll run. This way, rather than letting it drag on into the next payroll run, you’re getting on the front foot. For example, making sure that you send a note to clients notifying them of the consequences of not properly submitting timesheets means that errors will be reduced.
Selecting payroll software correctly
It’s important to make sure that you have a payroll software that can work and grow with your business. FastTrack’s Back Office connects seamlessly with your Front Office to create one synchronised platform. Choose a software that is set to grow with you, rather than inhibit your growth. Interpret complex agreements with ease, and be assured that FastTrack’s payroll system will remain compliant with future legislative changes. Click here for more information on how FastTrack can minimise your payroll errors, as well as making the process more streamlined.