How to Avoid the Most Common Payroll Mistakes

payroll software

May 14, 2022

Studies show that compensation is among the top three drivers of job satisfaction, implying how payroll has become a vital aspect of human resource (HR) management. Consequently, when employees are paid the right salaries on time, they tend to become more engaged and productive, while on the other hand, poor payroll services may cause dissatisfaction among them. 

As reports show that 49% of workers would prefer to start a new job search after two paycheck errors, it becomes crucial for HR managers to take note of the most common payroll mistakes they may be committing and develop the most appropriate solutions to solve them altogether.


Most Common Payroll Mistakes


  • Miscalculation of Payment


A typical payroll process involves a lot of numbers: payment for overtime duties, commissions, deductions,  and taxes, among others, which may cause payroll managers to make some errors in calculating them. In fact, according to reports, a quarter of all workers have had paycheck errors. This may not only result in employee dissatisfaction, but it can also lead to costly fines, affecting their tax withholdings as their payment changes.


  • Missing Deadlines


In payroll, timing is everything, considering that there are laws that mandate when payment of salaries shall be made. Failure to meet the deadline may even result in penalties and fines in some countries, like the UAE.

However, this mistake may be inevitable, especially for organizations who have not yet automated their processes. Considering the bulk of data involved in the overall transaction, payroll, in reality, is prone to human errors, such as delays and missed deadlines.


The Best Solution

Avoiding the most common payroll errors may be solved through various strategies, but the best solution in addressing them would be to invest in a reliable cloud based payroll software, which can give HR managers the following benefits:

  • Automation of Calculations

A robust payroll software has a calculation automation feature, which allows payroll managers to simply enter the corresponding payment rates and deductions and let technology handle salary computation, eliminating human errors and ensuring that all payments are accurate.

  • Digital Tracking and Monitoring

Payroll software enables HR managers to digitally monitor all employee data relevant to the overall payroll process, allowing them to automatically release payments during deadlines as may be mandated by law. Aside from that, this also allows them to see employee expense requests, grant them real time, and immediately have the transaction reflected on the next payroll cutoff as even the system tracks everything.

  • Bulk Upload

With the help of a payroll software, HR managers who opt to monitor payment deductions, bonuses, and commission payments using other platforms may be allowed to just upload their CSV or XLS files into the system, and have their employees’ net pay be calculated automatically.


Find the Best HR and Payroll Solution

If you are an HR manager looking to improve your overall HR and payroll processes in order not to commit the common errors mentioned above, visit EmiratesHR for a robust HR and payroll solution in Dubai.