Payroll Processing: Avoiding Common Pitfalls

Payroll mistakes are painful — they erode trust and can lead to penalties. Here’s how to get payroll right.

Common issues

• Misclassification: contractors vs employees changes tax and benefits obligations.
• Missing WPS deadlines: in jurisdictions using Wage Protection Systems (WPS), late submissions can cause penalties.
• Overtime & benefits errors: wrong calculations create payroll disputes.

Best practices

1. Use payroll software integrated with HR to sync hires, terminations and salary changes.
2. Keep clear policy docs for overtime, leave and reimbursement rules.
3. Run regular payroll audits to catch discrepancies early.

Result: Correct payroll processing improves employee morale and keeps your business compliant.