Outsourcing payroll services has been the trend in management. However, if the payroll processing activities are carried out manually, there will still be some inaccuracies due to the many calculations involved and many more mistakes may come up due to human error. Payroll outsourcing may not produce the best payroll for your business. For that reason, there are software applications which are devised to help in averting some mistakes which may go unnoticed when done manually. There are many applications which can be used. For example, FingerCheck360. The mistakes avoided are discussed below.
- Paid time off (PTO) mistakes.
The system for online payroll initially started as a time tracking system. The system can, therefore, track sick leave or days off if you just set it to do so. This avoids situations where some employees are underpaid due to the sick days or days of leave being exempted.
- Mistakes in paying OT (over time) when a week has a paid day off.
A time tracking software tracks time including attendance. It is very accurate in marking when an employee arrives and leaves. Therefore, over time is easily calculated. When doing the payroll manually, marking the attendance may not be accurate. However, the major problem when doing manual occurs in paying overtime when there is a paid day off. Using software eliminates mistakes involved with paid days off by the days being set and tracked in advanced to avoid the confusion. The day when an employee will not be available for overtime, his or her attendance will not be tracked by the software.
- Mistakes in calculating gross salary and taxable salary.
There is a certain part of an employee’s salary which may not be liable to taxes. Using a software makes it very simple to track such salary by tracking an employee’s activities. It is very hard to track such salary and differentiate it from the gross salary.
- Mistakes in late payment
When using a manual system in doing payroll processing there may be a delay in payment. The company doing the payroll services may have issues with their system or employees may miss work for some days due to unavoidable issues such as being sick. This may delay the payroll processing activities and hence result in late payment. However, with time tracking software, the mistake of late payment is avoided. The software works throughout hence payment will always be on time.
- Inaccurate calculations
Unlike manual calculations of payroll which are prone to human inaccurate calculations, using a time tracking software is very accurate. This is because the software does all the calculations of time, gets a net salary, tax payable and the net salary accurately.
A payroll time tracking software is an important tool in carrying out payroll processing. It helps to save money and time used in doing payroll processing activities. One can be able to do payroll without being an expert when using a software. Therefore payroll outsourcing may not be necessary with this software.
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