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Three Payroll Problems

Good payroll management means paying your employees on time, compliance, and the correct amount. The Payroll process can be full of errors if you do not have the right tools and resources, costing the employee and the company time and money.

BDCS uses all the tools and resources available to give you peace of mind during the Payroll process, by making sure there are no errors that might arise, and if they do that they are handled with precision and 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. Meeting this expectation is easier when you are aware of these seven problems.


Misclassifying employees

Overpayment or underpayment of wages often occurs when employees are misclassified. Making an incorrect determination bout an employee’s overtime is a common problem. All employees who have worked any hours past 40 hours should receive overtime pay unless exempt

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

BDCS avoids misclassification by getting the employees to fill in their onboarding questions.


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

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.


Disorganized or incomplete Records

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

BDCS always keeps its’s records in order, guaranteeing that no payments are missed.


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. Your overall payroll management program will benefit from using the tips below:


Establish clear payroll policies

Record all your payroll activities, including the procedures for reviewing approving changes and payroll exemptions. A policy for record management and retention should also be set up.


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.




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