A payroll manager will easily agree that there is nothing more stressful than knowing the payroll has some error. To find that one-minute error, you end up checking everything from the start to the end and thus wasting a lot of time. Worst case scenario, if you weren’t even able to ascertain that you have committed an error, you attract legal battles towards yourself. So, in this blog, we share the things you should validate even if you are using the best payroll software. Do read.
Input and output
The preliminary payroll process should be used to match the total number of items in the source file. Doing this is necessary to ensure that the data of each employee is entered properly. Errors can happen even when you are using the best payroll software. So, to make sure the input and output are right, before processing the payroll, employees should be intimidated to check if they have applied for the leaves and half days properly.
Just like appointment letter can be extended to the candidates using recruitment software, accounting entries can be managed using the payroll software. If there is any gap in the information, it should be filled by checking the data. A well-integrated payroll system can eliminate the errors related to date entry easily.
It is very important to make sure you have not missed out on any skilled or unskilled worker in the payroll. Your payroll should include each employee. So, it is necessary to check the headcount using the below-mentioned formula.
Current month’s active employee’s headcount = Last month’s closing active employees headcount + new hires this month (-) separations during the month
The input doesn’t just include earnings but the deductions as well. You may be fetching inputs from the finance team related to payments and recoveries and from employees on the data related to investments. So, to be on a safer side and to omit errors, you should use standard templates to receive the data. Besides if you are using the best payroll software make sure you are also using the best attendance management software as well. This will also eliminate the need to validate the input altogether. If there is any discrepancy in the salary amount credited, you can pay the same in the form of arrears.
Year to year and month to month check
If you are not using the best payroll software, you will have to make the reports on your own. To do the same, you need to do a comparison between yearly payroll and month to month payroll. The difference you see is because of the new hires, salary changes, separation, statutory changes and other variable components.
If you are not a newly minted employee in payroll, you should be able to sense false or absurd deductions or payments made in the software and take action against it after digging in.
The payroll software you use should have a built-in system for validation so as to reduce your efforts.