This practical payroll checklist will help you assess the effectiveness and efficiency of your payroll processes.
Having smooth payroll processes is a game worth playing. You can prevent payroll mistakes, free up time for strategic HR and payroll activities, and reduce payroll processing costs by up to 80%.
In this article you’ll find:
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Before taking steps to change or improve your payroll system, you must understand the effectiveness of your current process. Honest answers to some crucial questions are a good starting point.
We’ve prepared the following payroll processing checklist to help you identify*:
*The information, data and guidance provided in this article is for general information purposes only and does not constitute professional or legal advice.
Payroll effectiveness and efficiency checklist [text version]
How effective and efficient is your payroll system?
Payroll mistakes result from poor payroll processes. Payroll processing is about ensuring employees get paid correctly and on time. Unfortunately, this is not something employers are capable of getting right every time and/or in every case.
The most common payroll mistakes include:
For more detailed information about the 8 payroll errors, check out our article: “The 8 Biggest Payroll Errors Most Employers Make”.
No company is immune to payroll errors, but all companies can minimize their number. Using a payroll system checklist is a good starting point to ensure a mistake-free and compliant payroll process.
Check out the recommendations below to see how you can avoid payroll mistakes and improve your payroll performance.
Make sure your payroll process works smoothly, and your system is flexible. Don’t risk forgetting to meet important deadlines or to send forms on time.
Go through and spring-clean your existing records. Use a proven, modern system to gather all the relevant details about your employees.
Ensure your payroll admin has all the necessary information, data, and processes to handle the payroll process properly. Make sure you reduce manual payroll processes to a minimum.
Does it make sense to use your HR team’s time on manual data entry, salary calculations in Excel spreadsheets, correcting payroll errors, and dealing with high employee turnover? Is it a good idea to give up the benefits of the innovative technologies of the 21st century? Can your company afford (more) problems with payroll? You probably know the answers to those questions.
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Always keep backup records if something happens to the original files/your device or software crashes.
If payroll errors occur, resolve them immediately. If necessary, report them to relevant entities. Correct errors promptly to minimize employee dissatisfaction and avoid penalties.
In the case of minor payroll errors, you can usually do one of the following:
If you have access to payroll software, run a few key reports before processing payroll, e.g. deductions summary. This will help you catch and prevent mistakes.
Additionally, to prevent payroll errors:
Do your best to spot payroll errors before they happen. Using human eyes alone for this may be too risky.
Instead, invest in HR & payroll software.
Payroll and HR need better data for better decisions. Together, payroll and HR can gain an excellent collective understanding of their employees and what makes them want to stay or leave (whether pay-related or not).
Unfortunately, HR and payroll departments have lagged behind in this regard. Fortunately, today AI, automation, and modern HR and payroll software can help them analyze key data and identify trends as well as pain points. This way, issues can be addressed proactively.
The significance of technology in HR and payroll is growing.
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Payday is directly related to profitability and the success of your business. That’s why you must:
Otherwise, the risk of payroll mistakes and errors is high. You’ll also have less time for strategic HR activities and building a great company culture. Therefore, payroll has a critical role in employee retention. It’s also an area where you can automate unnecessary work.
As doing payroll manually is too risky these days, automated payroll may be your safest bet and can help you:
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Thus, it’s worth creating a payroll master file for automation. Automation can help with specific (usually repetitive) tasks so HR departments have more time for those that require the human touch.
Symmetrical offers easy, automated payroll services with the support of a dedicated team of payroll experts to help you:
It’s worth assessing your payroll performance and investing in payroll technology to get your payday right.
Do your best to reduce payroll mistakes to a minimum, and pay your employees accurately and on time (every time). Use the right payroll services to help you with payroll management.
Automation combined with expert support makes things easier. It’s so simple.
Interested in mistake-free payroll? Download our payroll guide!
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