Follow These Tips For Effective Payroll Management
It’s quite crucial that you stay up-to-date with the latest developments happening in the payroll world. Being unaware with the latest laws in the Australian Tax Department can cost you a lot of money. To avoid such situations, you can either go for payroll outsourcing or payroll software for effective results.
Remember, if proper care is not taken then even an extra dollar per hour can cost a company thousands of AUD every year in unwanted expenses. Here, we have made an attempt to list the most common payroll management mistakes that should be avoided by businesses.
Let’s take a look at a few steps you can take to Manage Payroll for your company.
Get Another Person To Make New Employee Records
You need to make sure that the payroll individual is not a same individual who makes the new records for workers. By taking this step, you can ensure that the payroll individual can't make a fake worker to receive payment every month. You also need to ensure that the manager makes the record as it additionally helps the manager to watch out the system. Also make sure that your software skills are excellent.
Keep An Eye On Every Cent Spent
When making allowances ensure that all the entered information is right to the decimal point. One mistake between of decimal between the numbers will shoot up the whole amount from cents to dollars. Go through the information before and after entering to save time later when you look for any mistake in the payroll. Build up an adjusting policy to submit the right amount while calculating allowances or penalties.
Timesheets Should Calculate 15 Minute Blocks
When workers submit their week by week time-sheets it can be difficult to translate the numbers and enhances the danger of blunders. Make the time-sheet as it will allow the record-keeping to become more exact from the beginning. Try To incorporate these points:
Examine The Award Entitlements
Due to the fact that the fines for underpaying workers can be more than AUD 30,000 for every mistake, it is critical that you survey and watch that all compensation rates, allowances and additional time rates are at par with the latest legal requirements.
For instance, if all the workers get an automatic increase of 3% under the Australian laws, then this implies your payroll should be changed in accordance so that it meet this legal ruling.
Even if it doesn't seem like much, however in case you neglect to apply this change and your worker reports you for underpayment, then it will result in bringing the case to auditor who will then ask the time and salary record for that employee for evaluation.
Remember, one cannot stay away from giving the right salaries to the employees in Australia as they have 6years to report a case of underpayment. Do you wish to stay away from all these troubles? Then you have two options - Payroll outsourcing and Payroll software.
Payroll outsourcing is a third-party will manage all your tasks and you won’t be liable for any mistakes. Payroll software is a cloud based service that will help you to run all the payroll related tasks smoothly.
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ABOUT THE AUTHOR
Sandra Lee is the author of many published works on various topics such as Cloud HR, Payroll solutions, human resource strategy, human resource management practices and HR solutions.