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How To Avoid Payroll Errors


Managing payroll can be one of the most hectic, time consuming and error-prone challenges facing most companies today. With labor regulations and litigations being on the rise, payroll errors can also be costly to the business.

Some of the measures Virtual HR Services has put into place to avoid making mistakes on their payrolls are as below;

  • Ensuring accurate employee data: During onboarding of employees, we confirm to ensure that their names, statutory deduction details, bank account numbers and all other benefits they are entitled to are accurately captured.
  • Payroll planning: Set a deadline for both – external for statutory deductions and internal for employees’ paydays and stick to the set clients’ schedules. This helps with timing and accuracy in payroll processing.
  • Data security: Some payrolls leave most companies vulnerable to payroll fraud like identity theft and misappropriation of funds. Virtual HR Servicesmitigates such security risks by ensuring data encryption and security certifications to ensure that all clients’ data is properly stored, protected and error free.
  • Keeping track of the latest laws and regulatory updates: There are many existing laws affecting how companies administer employees’ pay and regulations change over time. In addition to understanding the basic requirements for payroll administration and operational tax laws, we understand how to apply newer programs by keeping track of regulatory updates.
  • Payroll verification by a second party in the Payroll Section: All payrolls that we prepare on behalf of our clients are reviewed and properly checked by a second person in the payroll section before being shared with our clients. This helps to correct any entries erroneously captured.

Payroll errors may occur but getting payroll right is a great way of exceeding clients’ expectations and building trust as well as a long-lasting relationship. With an integrated payroll system in place, we have built an efficient payroll process, stayed in compliance, and always deliver error-free payroll files to our clients.