The Importance of Payroll Audits
Payroll processing is a vitally important function within any organisation. With wages typically accounting for half of all business expenditures, errors in the calculation of salaries, deductions, benefits, and allowances could result in over-payments which cumulatively over time may threaten the financial stability of a business. While from a morale perspective, efficiency and accuracy in payroll is crucial. Late or incorrect payments (particularly underpayments) can lead to financial difficulties for employees, a disgruntled workforce, high staff turnover, and a lack of confidence in internal processes. In the worst-case scenario, it could also present cause for legal action against the employer, particularly if contractual elements such as pay rates, bonuses, leave entitlement and pension contributions have not been properly administered.
However, it is not only employees who may take a company to task over errors in payroll processing. Regulatory bodies such as Revenue or the Workplace Relations Commission are likely to act against any business that has not fulfilled its payroll responsibilities, potentially resulting in financial penalties and unwanted press coverage.
For these reasons, payroll services must be processed accurately, in a timely manner, and in accordance with all current legislation. Implementing regular payroll audits are an effective way to achieve this. By completing an audit periodically, you can ensure that payroll is being processed in a consistent, efficient way, satisfying your legal and financial responsibilities whilst also meeting employee expectations.
When completed on a regular basis, payroll audits provide ongoing peace of mind that your business is processing payroll correctly, and in accordance with all legislative, regulatory, and contractual requirements. A thorough payroll audit reduces your risk of overpayment, and ensures that you are processing new starters, leavers, benefits, and exemptions as per company policy, regulatory demands, and employment contracts.
Performing a payroll audit also allows you to identify any issues in the payroll process with a view to finding solutions which will either reduce costs or improve the payroll service. A well-structured, comprehensive payroll audit should also proactively detect potential future issues and strengthen the financial controls of a business.
While it is not unusual for some companies to complete basic payroll audits in-house, investing in an experienced payroll service like Paycheck Plus to audit your current payroll processes is often a more effective option. From an objectivity and impartiality perspective alone, utilising an outsourced payroll service is likely to lead to greater insight and identify areas of improvement which could be overlooked by an internal auditor who may be too familiar with the current process or simply not have the experience to identify a more efficient payroll process. By using an outsourced payroll service like Paycheck Plus for your payroll audit, business owners and directors are reassured that payroll processes are compliant, follow best practice, and have the appropriate safety mechanisms in place to avoid errors, omissions and overpayments.
Why Outsource Your Payroll Audit?
Outsourcing your Payroll audits to payroll services such as Paycheck Plus is one of the most efficient ways for organisations of all sizes to ensure compliance and accuracy in their payroll processing. With a professional team of experienced payroll specialists, Paycheck Plus have access to the latest and most secure payroll technology and infrastructure, allowing us to provide accurate and insightful payroll audits that enable businesses to make evidence-based decisions about their payrolls.
At Paycheck Plus we provide comprehensive, ISO accredited, cost effective payroll outsourcing and payroll auditing services. Specialising in all aspects of payroll processing, our team of payroll service experts are well-versed in all payroll-related complexities and can cater to all of your payroll auditing and processing needs.
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