Have you thought that getting payroll right is just about paying salaries correctly? To some extent, that is true, but in a broader sense, it is not. In addition to that very basic function, the payroll process covers the realm of following the rules and avoiding big fines. If you are a business owner in India and you fail to make a PF payment on time or get TDS wrong, you could be facing huge penalties in the range of ₹1,00,000 or more.
Most growing businesses don't make payroll mistakes on purpose. They happen because companies still use old methods like Excel sheets. They don't have the right tools, like payroll software, to stay compliant.
In this detailed guide, we will discuss the most common payroll mistakes. We will also explore how modern payroll management software can fix these problems easily.
Common Payroll Compliance Mistakes You Can't Ignore
Handling payroll manually is the number one reason for payroll compliance errors. Even highly up-to-date and hardworking HR teams make mistakes when they are made to do the payroll manually. The common mistakes that pop up this way are:
Tax Problems:
- Wrong TDS calculations
- Late PF and ESI payments
- Missing filing deadlines
Paperwork Issues:
- Late payslips
- Missing Form 16
- Poor record-keeping
Employee Classification Errors:
- Mixing up contractors and full-time staff
- Wrong attendance and leave data
How Payroll Software Helps Fix and Prevent Compliance Errors
Modern payroll software for small businesses embodies the intuitive automation and rule-based intelligence needed to fix errors and prevent compliance breaches. Look at some of the key areas where they come to your rescue.
