Research shows that about 82 million US workers face different payroll problems during their careers. Some of the most common issues include missed salaries, delayed payments, and receiving an incorrect amount of money.
While there are many payroll software to simplify paying employees, such cases are still prevalent. Thus, employers and business owners need to use the most efficient payroll solutions to avoid problems and keep their staff happy.
Here, we discuss three types of payroll problems most employee managers and human resource experts come across. We will also mention some of the solutions that can help you avoid or reduce payday problems.
1. Data Organization
Updating employee information such as new salaries, deductions, or bank account changes is a common issue in most companies. Without proper record keeping, you may use the wrong information when sending out wages.
You can also find it hard to comply with protocols such as reporting tax deductions and compensation paid to employees. While this may appear as a minor issue, it can get you in trouble with the Internal Revenue Service (IRS) and lead to a financial audit.
Since organizing financial data on paper is a tedious process that can sometimes lead to math errors, it’s vital to use digital solutions. The most effective way to keep track of business accounting procedures is using various software.
Depending on the type of transactions you handle and the number of employees you have, you can always find a program designed for specific financial needs.
2. Unbanked Employees
According to studies, about seven million households in the US do not have a bank account. If you have such workers in your business, you have to use different methods such as cash payments.
Unfortunately, handling large sums of money may be risky and expose you to the risk of theft. Other than that, cash transactions are hard to track, so it may be challenging to prove that you paid employees.
In some cases, you may also be unable to pay in time and lose good employees to your competitors. The best way to deal with this issue is to use pay day solutions that allow you to avoid handling cash payments. Such may include issuing your staff members custom-made payroll cards.
These cards allow you to deposit wages during paydays so that users can access their money without opening a bank account. If you want a reliable employee pay solution, visit this website to learn more about payroll cards and their benefits.
3. Protecting Employee Information
Safeguarding employee information is among the most common bookkeeping problems businesses face. Failure to use efficient security measures can expose you to data breaches and affect your brand’s reputation.
Such cases can also lead to fines and penalties because you have a legal duty to protect your employee’s data. The best way to deal with this problem is by making sure the financial software you use is secure.
Further, educate your staff on how to protect themselves from cyber-attacks and malware. You should also limit the number of people who can access systems that contain sensitive information.
Use Payroll Solutions Designed for Your Company’s Needs
Using different types of payroll solutions in your business can make your work easier and improve security. Start by identifying the bookkeeping issue you want to solve, then look for a program designed for that use.
If you want to learn more about modern business solutions, browse this page today to read other educational posts.