How Do You Know When it is Too Late? When it All Turns to Fluff!
Proactive payroll management can be compared to the dandelions growing on your lawn. When things go unnoticed for a period of time they can often get out of control. Requiring a large amount of time and company resources to sort out and calculate the necessary adjustments.
Payroll is always evolving. Legislation keeps changing, especially now during the COVID-19 outbreak. Vacation accruals, employee rates of pay, employee benefit amounts, employee deductions, as well as, any other taxable benefits or allowances must be updated and monitored on a regular basis.
If any of these require a change, and that change gets overlooked, as time progresses, the variance will increase, putting either the employee or the company in an unfavourable position. Any needed changes must be done as soon as possible to mitigate this risk. Employees do not appreciate unexpected events that affect their pay.
So how does this relate to dandelions? Look at it this way. While it is in flower, it is within your grasp. You can audit your payroll for errors, make changes and adjustments, and keep your employees on track. Prevention is key, so once you get close to year end, you can finish the year off with a smooth finish because you have been proactive and maintained your awareness throughout the year.
Or, you can wait till it all goes to fluff. At this point your options are limited. One gust of wind and now the crisis spreads rapidly.
The point is, payroll is not just a quick task that you complete every two weeks or whichever pay frequency you have, it is an important ongoing process requiring a proactive approach.
You must be on the lookout for errors and abnormalities, ask questions, review reports, verify software calculations, taxation, pensionable and insurable earnings, and most importantly, keep up with current legislation.
It’s a handful, but it has to happen, or it all goes to fluff.
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