9 common payroll mistakes and how to avoid them

9 common payroll mistakes and how to avoid them

  Managing payroll can be a complex affair that demands a lot of effort, documentation, and tracking. The ever-changing rules and guidelines have made the modern payroll management landscape more complicated than ever. As a result, errors arise that could result in delays in payments for employees, which may hurt businesses and prove costly for owners. To manage payroll processes more effectively, take a look at some common payroll mistakes and simple ways to avoid them. 

  • Misclassifying employees and contractors 

Every business must carefully categorize its employees (as employees or independent contractors) to dock the right pay. Errors while doing this result in having to look through old payment records to make adjustments to employee pay. It could lead to dissent among the team and cost the business.

Moreover, according to the Fair Labor Standards Act (FLSA), all employees must get overtime pay for any hours worked over 40 hours per week unless they are explicitly classified as exempt. Making errors here could lead to FLSA-related fines for employers.

To manage this, hire reputed payroll service providers and avoid listing freelancers as employees. Only hire contractors and freelancers through leasing companies to avoid any penalties for misclassification.

  • Making calculation errors

Making errors in payroll calculations can also cost businesses money and labor.

Popular Articles

01

9 common annuity mistakes and how to avoid them

An annuity is a contract that binds the insurer to make a series of payments at regular intervals. They can be a valuable investment tool, especially for one’s retirement. However, people may make many mistakes when signing up for these, causing them to pay big sums in interest or deal with losses. Read on to find out more about nine common annuity mistakes people make and how to avoid them. Choosing the wrong insurance provider/annuity Investors can choose between five basic annuities – fixed dollar amount, inflation-adjusted, variable, guaranteed minimum withdrawal benefit, and guaranteed lifetime withdrawal benefits. Each of these has its own pros and cons, and choosing the right type is important to meet one’s financial or investment goals. Additionally, investors also need to pay close attention to the insurance company. These policies must only be purchased from highly reputable companies with a solid financial strength rating. Overlooking the costs Annuities are an expensive investment; failing to pay attention to the fine print when signing up could result in major losses. Just like other retirement tools, annuities too have associated fees, charges, and commissions. Most commonly, these include mortality and expense fees, administrative fees, surrender charges, investment management fees, and charges for optional riders.
Read More
02

9 common car maintenance mistakes and how to avoid them

A car is a significant investment, so it is important to ensure it functions properly for a long time. Timely repairs, servicing, and maintenance are a few ways to keep your car in good condition. However, car owners often miss out on certain aspects of maintenance, which can lead to repair jobs that can burn a hole in the wallet. To help avoid such scenarios, here are some common car maintenance mistakes to avoid. Trying to service your car without any expertise Car owners may be easily tempted to do maintenance work on their automobiles to save a few bucks. You may think the problem is relatively small, and you only need to look at a few videos online, get the tools, and solve the problem yourself. However, if you don’t have the required experience or expertise in car maintenance, it will result in problems in the long run. You will have to pay more than you wanted to save to reverse all the damage. Therefore, it is always best to check with a professional having the necessary equipment, tools, and expertise to service and repair your car correctly. Postponing the car wash Reasons ranging from sudden emergency appointments and personal commitments to errands often push back on the routine car wash you had planned.
Read More
03

10 common shipping mistakes and how to avoid them

Shipping makes life easier for consumers as it facilitates the delivery of goods and helps businesses expand their reach. But even a single error with shipping can result in a waste of time and money and possible loss of customers for businesses. Hence, shippers must be very careful while shipping products across long distances. Streamlining shipping processes is a must to increase efficiency and send goods across on time. Here are some common shipping mistakes to avoid: Not packing the parcel properly Sometimes, shippers overlook the importance of packaging, especially if the product is sturdy and not likely to break. But no matter how strong the product is, proper packaging ensures it reaches the recipient in good condition. It is usually easy to identify if a product has been packaged properly or needs a different packaging solution. For example, the product may hang out of the pallet on which it is shipped, which means that a pallet of a bigger size is needed. Stacking items methodically can help fit all the products securely in a package. One should use other packaging items like bands and stretch wraps if necessary. Writing incorrect information on the Bill of Lading Shippers need to mention details of their shipments and provide their signatures in a Bill of Lading (BOL) document.
Read More