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Let’s tackle the basic payroll problems

Let’s tackle the basic payroll problems

Good payroll management means paying your employees promptly and accurately. The payroll process can be riddled with errors if you do not have the right tools and resources, costing the employee and the company time and money.

BDCS uses all tools and resources available to give you peace of mind during the payroll process. Errors are eliminated and if they slip through they are handled promptly and with care.

Correct pay is one of the most basic expectations of an employee. However, internal and external factors can prevent the delivery of W-2s, accurate paychecks, and other payroll reports. Firstly, we’ll help you meet these expectations by identifying the most common errors in the payroll process. Then we’ll follow up with tips that guarantee the elimination of the most errors in your payroll process.


Misclassifying employees 

Overpayment or underpayment of wages often occurs when employees are misclassified. This error mainly happens during the onboarding of employees.

Misclassification doesn’t only create trust issues between you and your employees but may also cost your company money. For example, when someone is classified as an independent contractor instead of an employee it results in going back in the payroll history and making adjustments or retroactive payments to the employee.

At BDCS we avoid misclassification by letting employees fill in their onboarding questions in the ESS App. Errors and typos during data collection and transfer are kept to an absolute minimum because employees feed the information into our simple, yet sophisticated system personally.


Miscalculating pay

Incorrect paychecks frustrate employees, especially if it results in payments being missed. These miscalculations waste time as it takes hours or even days to investigate and correct these issues while carrying on with the regular payroll cycle.

Not tracking employee overtime and work hours accurately makes for a nightmarish payroll experience.

Making an incorrect determination about an employee’s overtime is a common problem in the payroll arena. All employees who have worked any hours past 40 hours should receive overtime pay (unless exempt). Logging overtime hours incorrectly can lead to improper overtime payments, which will require corrections possibly spanning across multiple tax years to occur. Fixing these errors can take long and causes employees to feel unsettled as they are either underpaid or need to give money back to the company due to being overpaid.

BDCS ensures that all your employees are paid accurately, keeping a close eye on overtime hours and hours worked through sophisticated technology, proven processes expert payroll administrators.


Disorganized or incomplete Records

If your payroll process is unorganized and inefficient, you are setting yourself up for disaster. Relying on manual data entry, a mass of Excel spreadsheets or paper processes cause issues that may take weeks or months to rectify. Disorganized records may also lead to missing the payment of an employee, picking up any irregularities, or following up on things that need your urgent attention.

BDCS has sleek systems in place, uses cutting-edge technology, and a promise of service excellence which means record-keeping is done efficiently and according to the newest regulations and requirements.


How to Improve your payroll management and avoid errors

Automating the payroll process is an excellent way to prevent the most common mistakes and keep up to date with legal requirements. Automation can be time-consuming, but the return on time invested will be reaped for years to come! Here are two tips to get you going on a smoother payroll ride:


Establish clear payroll policies

Record all your payroll activities, including the procedures for reviewing, approving, and changing any payroll-related elements and exemptions. A policy for record management and retention should also be set up. At BDCS we keep all policies and procedures online and easily accessible through our ESS App. Instant access anywhere ensures confident employees when disputes or uncertainties arise.


Automating and Integrating

Automating and integrating your payroll workflows helps avoid paper-intensive processes and manual entry, which often leads to errors. An integrated system also keeps your time tracking, employee benefits elections, and scheduling correct, resulting in consistent payroll between HR-related and payroll-specific data. BDCS is paperless with our ESS APP, recording all entries and preventing any errors manual entry could present. Employees can keep tabs on their information and instantly inform our system and administrators of any changes.

For more great tips and helpful information visit our BDCS blog that supports the business world! The one-stop spot for the latest news and advice from Business Directive Contract Service.