What's The Most Common Problems In A Manual Payroll System?


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Daniel Blazer Profile
Daniel Blazer answered
Problems with a paycheck can mess up an employees budgeting for the month. Being over or underpaid and too early or too late is not only extremely irritating, but can lead to bills not being paid on time and payments being missed. The most common problems in manual payroll systems are due to the margin for error being much higher than other systems.

As a manual payroll system is done entirely by hand, there are plenty of points at which things can go wrong due to human error. An individual carries out all timesheets, taxes, wages, checks, verification and recordings, and there are many small calculations that can be slightly mistaken that will cause far more serious problems further down the line. The fact that a manual payroll is done by hand can cause problems with liability. If one individual is in charge of the payroll system, then anything and everything that goes wrong is their responsibility, meaning they will have to deal with the consequences. If there are any mistakes made with taxes, then the individual can infer penalties from the government. A manual payroll system can only really used successfully and efficiently if it is only for a handful of employees.

To avoid the problems of human error, it is possible to implement an alternative payroll system. Staff using payroll software installed at the organization can run in-house computerized payroll systems. While this system is more accurate, the cost of running the software and employing the staff to use it can be expensive. An employer also has the option to outsource the payroll system to an external provider. For a small fee, the provider will do all payroll duties and is fully liable. External providers can cause problems, but the employer may not know about them until payday - something that will frustrate employees.
Stewart Pinkerton Profile
Human error. People make mistakes, machines don't.

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