What kinds of mistakes happen with payroll mistakes and how to prevent that?

 

The payroll system takes care of the salary, reimbursement and other payment related issues between the company and the employees. Almost in every corporate house, business firms, any small or medium sized companies have implemented payroll software for smooth management of the system. The Malaysian companies, manufacturing firms, organizations etc. in maximum times use both the HR and payroll Software in Malaysia. But there some common mistakes happen sometimes even though there is software. So, let’s understand the mistakes and its prevention from this discussion.

Mistakes of payroll system?

·      Failure in tax deadlines frequently – It is one of the common mistakes of this software. This can lead the company to big trouble. Missing out the payroll tax deadlines, may raise the issue of tarnishing the image of respective company. The organization will have to pay hefty late penalties, which may cause unwanted financial crunch within the organization. It also hampers the employees.

·       Unable to maintain accuracy in data – If there is any fault in payroll system, there shall be mistakes in calculating employees’ salary calculation, reimbursement etc. These procedures may be stand still. For any kind of discrepancies in the payroll software in Malaysia, will be a threat to the company as well as the employees. An employee puts his/her effort throughout a month, to get the remuneration at the end of the month. So, if there is any mistake that is as good as doing a crime.

·      Inaccuracy in tax calculation – Taxes are very dynamic in nature. It varies country to country. Suppose, you have an establishment in any Middle Eastern country, or any European/ South Eastern country etc. – all these countries or territories have their individual taxation. Therefore, any single mistake in tax calculation due to failure of payroll software mistake will create big issue in organization.

·      Miscalculation in overtime reimbursement – If there is any system error, and then there can be problem in keeping the overtime data of an employee. Therefore, there can be issue in overtime calculation and its reimbursement. In case, both the HR and payroll Software in Malaysia, are not working properly, then this kind of problem will come up.

So, now we have to understand how to prevent any organization from payroll mistakes, and think for betterment of the company: -

Ø Firstly, ensure that you are providing the correct data while there is any new recruitment, there should be additional verification procedures for both the employees and the employer.

Ø Try to eliminate human error. It happens when you forgot to put any data manually in the system. For example – if you issued any reward points to an employee, which can be reimbursed later. So, if you missed to put this record on to payroll software in Malaysia, it may create discrepancies.

Ø Keep eye on the security of the system. Avoid manual system; rather have cloud-based solutions. That will give much authentic data.

Before implementing the software, you can try free online app for Malaysia. If you are comfortable with these systems, then implement the same for your company.