8 Steps to Handling Payroll Errors
NOOOOOOOOOOO!! Something went wrong, how did it happen? Well calm down, we have a few steps for you to go through to fix your errors. Always keep in mind this is not uncommon and has happened before. At Certified Payroll Advisors we help clients get their payroll back in order. If you feel you need help, do not hesitate to contact us, it is what we do!
- Identify the error: The first step to handling a payroll error is to identify the mistake. Review the payroll records carefully and compare them to the employee’s contract or agreement to pinpoint the mistake.
- Notify the affected employee: Once you have identified the error, notify the affected employee immediately. Explain the mistake and the steps you plan to take to correct it.
- Calculate the correction: Calculate the correction for the error, including any back pay or adjustments that may be required.
- Make the correction: Correct the mistake in the payroll system as soon as possible. This may involve adjusting the employee’s pay or taxes, or making a manual adjustment to the next paycheck.
- Review the payroll system: After making the correction, review the payroll system to determine if there are any underlying issues that caused the error. If necessary, make any necessary changes to the system to prevent similar errors from occurring in the future.
- Document the error: Document the error and the steps you took to correct it. This documentation may be necessary in the event of an audit or legal dispute.
- Communicate with management: Finally, communicate the error and its correction to management. This will help ensure that they are aware of the situation and can take any necessary actions to prevent similar errors from occurring in the future.
- Finally, make sure any error did not cause for amendments to your tax filings with the IRS or the State Department of Revenue. If it does make sure to call the agency to find out the easiest method to make the corrections with them.
Unfortunately, that last step can be painfully time consuming. With Certified Payroll Advisors you will always have someone to back you up and help you through these situations from beginning to end. We pride ourselves in taking the burdensome tasks off of the shoulders of our clients and making sure they are spending their time with money making tasks. You can always get us on the phone without having to wait on 800 numbers or speaking to someone who clearly does not understand you business. CALL US if you need us at 772-208-9655!