At the heart of any successful business are your employees. Employees are not like other expenses. They can give you a competitive advantage in the industry by turning one-off customers into repeat business and helping subsequently to grow your brand. Ensuring your employees get paid the correct amount and on time, makes them feel like they have a secure job. It also ensure they feel as though they’re respected, which ultimately increases their level of engagement with the work they do. In turn, this also increases employee satisfaction and decreases turnover - both of which lead to a higher level of service for your customers.
Payroll affects every aspect of a small business from the morale of employees to the financial stability of the company.
Payroll processing:
Payroll is the process of calculating, withholding and filing employment taxes along with paying employees their salaries. Handling payroll typically involves sending out payslips to employees. One of the first steps however is determining whether a worker is an employee or an independent contractor. Both employees and independent contractors can be paid through a company’s payroll, but there is a big difference with regards to the various payroll taxes.
Common problems that arise while processing payroll in house:
- Failure at accurately deducting TDS
- Errors in processing salaries
- Not processing salaries on time
- Failure at paying TDS to the IT department even after collecting it
- Not adhering to the state’s regulations and compliances
- Not including all liable salaries, such as directors’ fees and superannuation in the summation of their payments.
- Not declaring fringe benefits and employee share schemes.
- Falsely classifying employees as contractors.
- Incorrectly claiming exemptions where they should not apply.
