Those who don't believe that payroll is a big part of their business should take a step back and reconsider.
There are many negative results associated with poor payroll management
. While many companies combat potential problems by hiring a payroll company, others roll the dice and hope for the best.
Here are five direct results of poor payroll management:
- Employees not getting paid on time. If you are looking for a way to anger your workers, this will do it. There is nothing an employee hates more than not being paid on time. Do this enough and you may find your workers leaving the company.
- Employees not being paid what they are owed. Poor payroll management could result in overpaying or underpaying employees. Either way, this type of mistake will lead to a lot of trouble in the near future.
- Late filings. Is there anything worse than not filing the appropriate payroll paperwork on time with the IRS, state and local authorities? Unless you are on top of things at all times, there may come a time when you miss a filing (more on this below).
- Penalties and fees due to missing a payroll filing due date. Can your company really afford to pay out money in penalties and fees as a result of missed deadlines? Like most, the answer is probably no. Even if you have money to burn, there is no reason to be careless with your payroll filings.
- Lost time. Without a payroll management system in place, you are going to quickly become disorganized. Subsequently, you will spend a lot of time playing catch up. Simply put, the more time you spend on payroll the less time you have for other business related activities.
Now do you have a better understanding of the consequences related to poor payroll management?
Do yourself a favor and outsource this task
. It will help relieve a lot of day-to-day stress.