Payroll services are an integral part of businesses. Having the ability to pay your employees and vendors on time not only keeps everybody happy, it also keeps the flow of work and profits up to speed. If you are doing your own payroll without outsourced services, there are several ways that you can easily mess up the company’s payroll. Here are the top 4 ways to mess up payroll and how you can correct these mistakes with minimal hassle.

Step 1: 1. Incorrect Data

One of the most common ways that a company messes up their payroll is by having incorrect data. Incorrect data can come from a variety of means. Employee time cards, computer viruses and other factors can lead to your company having the wrong data at the time of processing. To correct these issues, you should implement an employee protocol for incorrect punches and follow up with them on their time cards. Backing up computer data and having off site backup can help with viruses or malware that get onto your company’s computer.

Step 2: 2. Missing Paychecks

Missing paychecks are often a problem, but this mistake can be corrected fairly quickly. Missing paychecks are usually noticed by employees without having to go find them. When you realize that a paycheck is missing, go back to the system and figure out why the paycheck was not processed. This is usually due to a missing time card or a mistake when entering the data into the processing software. You can also correct this mistake by double-checking with employees before the timecards are needed for processing. You should also check with the employee’s bank to see why the direct deposit did not go through and how the problem can be resolved.

Step 3: 3. Employee Overflow

With a big boom or expansion, a company could take on too many employees at once. When this happens, the payroll department can get swamped pretty quickly. To avoid this, make sure that your department has enough people working in it to handle the volume that comes through. If this means hiring more people or outsourcing your payroll to a provider, consider it against the ramifications of your employees not getting paid on time. Errors are very common, but employees need money as soon as possible for there to be less of an inconvenience. Look at the company’s income and profits to determine where the department can be beefed up to avoid these issues.

Step 4: 4. Reliable Software

Software has made getting paid much easier for everybody, but having a reliable software package is invaluable. If you see too many mistakes with employee pay, consider getting a new software package for the company. Software can cut time and help accountants with tasks, but it must be reliable to actually do any good for the department. Look into quality software packages if you are thinking about switching your payroll software. Many software packages come with free trials so you can weigh your decision against the possible features.

Charles Dovbish is a freelance writer that specializes in finance and business.

Image Credit: Payroll Calculator Multiple Checks Software