3 Payroll Errors That Could Sink Your Business

payroll specialist avoiding errors entering payroll on laptop

You’ve Got To Get Payroll Right

As a business owner, you’re probably busy 24/7, which means you can’t always give every task your full attention. But whatever you do, if you get to the point where you have to put something on the back burner, make sure it’s not payroll. Read on to learn how you can avoid these common payroll errors.

1. Inaccurate Time Cards

Manual timekeeping systems that obligate team members to enter hours on a paper timesheet are vulnerable to errors. (Both intentional and unintentional!) For example, employees often record their designated shift start time even when arriving late and do the opposite when leaving early. On the other hand, even your most honest employee can have trouble accurately recalling hours when filling out a time card several days after the fact.

In any case, erroneous timecards increase costs of labor unnecessarily and burden your HR staff (which may just be you).

SDP Time tracks employee time to the minute to ensure you only pay staff members for actual time worked. Additionally, our system maintains accurate audit-ready time and attendance reports to safeguard you in case of a DOL dispute.

2. Misclassifying Employees

Employee classification affects benefits eligibility, minimum wage provisions, overtime pay eligibility, and workers’ comp eligibility. Further, employers who misclassify are at risk of state and federal penalties and should consult the comprehensive DOL guidance on the subject.

SDP Time allows you to customize the job codes for your organization to help you stay compliant. Additionally, it allows you to implement more efficient scheduling strategies to keep your labor rates as low as possible.

3. Failing to Pay Payroll Taxes

Small business owners may incorrectly think that failing to pay payroll taxes is akin to not paying personal income taxes. However, be warned that this is not the case. Even if you get in a cash pinch, DO NOT delay paying your payroll taxes as a stopgap measure.

Although meeting all of your employer tax requirements is challenging without trustworthy time and attendance data for each pay period, SDP Time alleviates some of this burden. Our system automatically collects, calculates, verifies, and transmits the critical information to SDPConnect.

What do you think?

Is your business guilty of any of these 3 payroll errors? Then it may be time for a change. With the help of SDP Connect and SDP Time, you can easily optimize the performance of your managers, employees, and business. After all, our platform is specifically created for busy employers like you who need to streamline scheduling, automate time and attendance tracking, maintain regulatory compliance, and decrease labor costs.

Curious how much you can save? Let’s crunch some numbers with our ROI Calculator! Contact us today to book a 15 minute demo to see if SDP Time is right for your business. And last but not least, don’t forget to follow us on FacebookTwitter, and LinkedIn for even more HR tips, tricks, and resources!

Photo by cottonbro from Pexels

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