February 10, 2021
Accounting companies have to face numerous challenges daily to provide services smoothly to their clients, out of all the accounting procedures, payroll processing is highly challenging and requires more attention. Payroll compliance is one of the most important and difficult aspects of payroll management. Every year, the law, regulations and Federal and State specifications increase.
The payroll service provider is expected to constantly monitor the changes in rules and regulations of payroll compliance at state and local levels. Internal changes like – incoming and outgoing of employees; change in sellers and suppliers, management of employees’ salary by outsourcing and other changes at the firm level can be a challenge for the payroll team.
All these problems make payroll management complicated Outsourcing payroll processing to an offshore accounting firm like Doshi Outsourcing saves you from such common payroll compliance errors. Payroll processing errors can be costly and takes extra days with unnecessary work which will cause potential damage to employee relations. By outsourcing payroll to an offshore accounting firm will not only save your cost but also assure error-free payroll processing
Failing to File Appropriate Forms On Time:
The government requires employers to report all new hires to HMRC within stipulated time and deadline. RTI is reporting payroll in 'real-time' to HMRC. Employers report to HMRC electronically in advance of making any salary or wage payments to their employees. Since April 2013 employer has to report HMRC on monthly basis under RTI. In addition to individual employee hiring requirements, there are quarterly and Year-End deadlines that must meet to avoid further penalties, fees, and some possible audits.
Arrange your Documents Systematically:
A general payroll mistake that payroll staff may make is mismanaging the important files. It is necessary to have all the employee records and information arranged in an orderly manner to create an accurate payroll account. Moreover, if your staff hasn’t arranged employee record files accurately provided by the clients, then proper workflow can’t be maintained.
So, always ensure that important files and documents are located in a centralized location from where payroll staff can easily retrieve information. This way staff won’t miss out on any important record that might get overlooked due to unorganized storage of files and documents. Even if you are using digital records nowadays, you need to place digital documents systematically so that information can be retrieved quickly.
Not Settling Up Payroll Software:
Some small accounting firms don’t expend in the payroll management software and let their employees deal with everything manually. The reason behind doing this is to save money on purchasing payroll software, but in reality, they are losing business because humans are bound to make errors. The software can reduce the number of errors as separate profiles of the employee is recorded in it.
So, if you are thinking of saving business expenditure by not setting up proper payroll accounting software, then immediately scrap that idea because it is going to harm your business reputation in the end.
Adhering Payroll Deductions:
For any payroll services provider and its staff, processing payroll deduction is one of the toughest nuts to crack. The difference in the rules of payroll deductions can create confusion in the mind of payroll staff and HMRC as well. This confusion and rapid change in the payroll deductions on different levels can create errors in the compliance of payroll services.
Thus, it is the responsibility of payroll processing companies to monitor deduction rules carefully and keep their eyes on any change in it. Being a significant task of payroll compliance procedure – it is the most mistake-prone area as well.
To avoid these payroll management problems, outsourcing payroll services works exceptionally well. If you are currently considering outsourcing your payroll and have any query, book your appointment today. Call us on 0208 239 4999 or email us at Dhruv@doshioutsourcing.com