Making sure employees are receiving correct amounts on time as per the applicable laws is required with effective payroll management. Unfortunately, without the right resources and tools, employee payroll easily becomes a minefield for mistakes which can cost employees, as well as the company, both time and money. The tips we’ve listed below will help you avoid the most costly and common errors in payroll processing. Check them out!
Create a manual for payroll processing
With payroll processing in UAE, it is absolutely essential that your business takes the time in establishing clear payroll policies. Create a manual which describes your business’ payroll activities. It should include when exceptions for payroll are made, as well as the processes for approving and reviewing changes. In addition, create policies for retention and management of records. Doing so will help with complying to legal requirements, including the requirement in keeping records related to payroll for up to five years.
Evaluate the current processes and payroll provider
A thorough evaluation of your organization’s existing processes will be a huge help in uncovering areas for improvement and inefficiencies. If your business is experiencing payroll errors and is in need of a fresh, new approach in managing payroll, consider switching to a more reputable firm for outsourcing payroll in UAE. As you identify the current priorities of your business in terms of payroll processing, you can also identify the outsourced external partner which aligns with the goals you have set. Then, take the necessary steps in ensuring a seamless transition from the previous payroll provider to a new team.
Automate and integrate processes
An integrated system for payroll automates workflow. This means you can avoid paper-intensive processes that involve manual entry. Manual entry opens the doors to costly errors. Additionally, an integrated system set up by an experienced team of payroll and HR experts in UAE can keep payroll activities aligned to scheduling, employee benefits elections, and time tracking. As a result, you’ll manage your workforce and achieve a high level of consistency between HR and payroll data.
By automating your payroll activities and opting to integrate them to all other HR activities, then you can avoid the most common and costly payroll errors. As a bonus, you’ll also enjoy the following:
- Align actual pay of employees with HR functions like bonus awards and salary adjustments which support accurate pay and employee classifications.
- Consolidate reporting in order to help manage and view labor force from a single platform. It will be much easier to check payroll changes and discrepancies in real time.
- Have one system that allows for recording of employee hours as well as calculating overtime. This reduces payment and recording mistakes.
Develop a detailed calendar for payroll
Having a clear procedure for pay periods, issuing pay stubs, and meeting regulatory obligations of organizations help avoid late filing fines and missed deadlines. By following a calendar for payroll processing throughout a fiscal year, you will always be aware of what is next. You can then plan the time that you spend on processing payroll in UAE and do so more effectively.
Keep track of regulatory updates and payroll-related legislation
There are a lot of existing regulations which affect the way you administer the pay of employees. Also, the local legislation for employment and labor change over time. Apart from understanding the requirements of maintaining and complying to UAE Wages Protection System or WPS, businesses also have to understand ways in correctly applying newer programs that businesses are mandated to implement within their organizations. If you keep track of all the regulatory updates, you’ll be able to make changes to your payroll processes rather than play catch up with law changes.
When it comes to regulatory compliance, it is always best to seek the guidance of payroll specialists as repercussions for non-compliance and violations can be devastating, most especially for small businesses.
Always process on time
As the owner of a business, it is a given that you are always busy. However, you have to confirm that you don’t permit the payday of employees slide by. If you forget to process company payroll on time, it will most definitely lead to unhappy employees and fines and penalties imposed by the local authorities. Take note: it is also likely that you commit costly mistakes when rushing payroll processing.
You can overpay or underpay employees, and end up needing to spend more time in making corrections and facing fines. You can easily avoid payroll mistakes by utilizing payroll outsourcing services in UAE like Payroll Middle East.
A payroll service provider in Dubai, UAE can help with payroll accounting and ensure compliance to applicable laws. Make payroll processing a lot easier by handing over the task to the experts.
