Introduction:
Payroll is one of the most important responsibilities for any business. It is somehow challenging to keep a well-tracked payroll process in business. Payroll processing is nothing but the mode of managing and assessing employee payments. Payroll includes all the payment details of your business. A well-managed payroll process is key to increasing the trustworthiness of your business.
How to Process Payroll?
Processing payroll means paying off employees for their work. This process is all about keeping track of worked hours, calculating wages, withholding taxes, and other deductions. The process also works in printing and delivering checks and paying government employment taxes. The whole process always involves managing ongoing multiple tasks that need attention and constant monitoring of changes. It brings up tax withholding, contribution, and other things to consider in the process. The payroll process generally works in three stages. Pre payroll, actual payroll, and post payroll activities. There are multiple activities in each of the stages.
Importance of Payroll:
Payroll is undoubtedly one of the most important tasks for any business company. Some major causes behind the importance of payroll are:
- The integrity of any company can be ensured by proper payroll process.
- The satisfaction of employees can be ensured by a properly managed payroll process.
- It can be used to identify problems like employee turnover, their presence, or absence.
- A detailed salary record of the employees can be recorded by payroll processing.
- Efficiency of any company can be ensured by properly managed payroll.
Payroll in Bangladesh:
Following others, Bangladesh is also growing its path to the business field day by day. There are a number of small and even bigger business companies in Bangladesh. The number of employees is engaged in companies. So, these business companies also require processing payroll to gather their employee information, manage benefits, and distributing employee payments. There are many payroll processing service providers in Bangladesh.
The providers provide many services such as payroll outsourcing, payroll tax consultant, payroll management, third party payroll, human resource info system, payroll management software, etc. Some names of the payroll processing service providers in Bangladesh are HR Bangladesh, Jibika Plexus HR, and Payroll Software, Eicra Payroll Service Provider, hrreco.com, etc. These payroll service providers in Bangladesh are working hard to ensure the best services to their customers. Their brilliant efforts are helping business owners to complete the payroll processing of their companies more accurately.
Top 5 Payroll Mistakes in Bangladesh:
As discussed earlier payroll is one of the major responsibilities of any business. Besides, the payroll process is challenging in its own nature. Sometimes minor even major mistakes can be conducted in the process. If we analyze some common mistakes of payroll can be detected. The mistakes are:
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Delay on Payroll Process:
The most conducted mistake of the payroll process is delayed payroll. This mistake is made sometimes due to the negligence of the company owners or by mismanagement. Delayed payroll is sometimes so long that it becomes the most annoying concern for the employees.
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Miscalculating Pay:
Another major mistake of payroll conducted in Bangladesh is miscalculating pay. This error can harm your business from a net revenue perspective. It can hurt your employees even more. In most cases miscalculating pay is done due to not using any reliable payroll software or mismanagement.
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Failing to Keep Complete Record:
Another most conducted mistake in payroll is not keeping a complete records. Negligence of the responsible body is the main cause behind this mistake.
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Misclassify Employees:
Misclassifying employees is another mistake in the payroll process in Bangladesh. Often employees are misclassified during distributing their salaries. The absence of proper management and not conducting the continuous assessment are the reasons behind it.
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Negligence in sending out tax forms:
Another major mistake of payroll in Bangladesh is negligence in determining tax forms. Sometimes this mistake is conducted intentionally for dishonest means.
How to Avoid Mistakes of Payroll?
It is not impossible to avoid payroll mistakes. To avoid payroll mistakes in business some steps can be taken. They are:
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Ensure Accurate Employee Data:
By ensuring accurate employee data 90 percent of payroll mistakes can be deducted.
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Pick Manual Payroll Process:
More than half of the payroll mistakes are done because of human errors. By picking up manual payroll process human errors can be deducted.
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Increase Security System:
Strong security system is a must to avoid payroll mistakes.
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Continuous Communication:
If you keep continuous communication with your employees’ payroll mistakes can be deducted.
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Transparency:
Ensuring transparency and accountability over everything can reduce payroll mistakes of your business.
Conclusion:
The Payroll processing system helps you to stay ahead of changes and accommodate rapid expansion. A well-managed payroll can keep employees satisfied and help your organization stay safe from legal consequences. Payroll mistakes can have a huge bad effect on your business. But it is fortunate that most of the payroll mistakes are easily avoidable with proper planning, education, and proper management. Being aware of the most common payroll mistakes is a great first step for avoiding them in your own business and maintaining a smooth payroll process.
