Payroll compliance is an important consideration for HR and payroll professionals. You need to make sure you can protect your payroll team – and your business as a whole – from any penalties that may stem from non-compliance.
You’ll also want to make sure that you’re keeping your employees happy by paying them on time – and seeing that they’re receiving the correct salary in the process.
To help you with payroll compliance, we’ve compiled a series of tips that will keep you on the right track.
1. Keep accurate personal records
Making sure you have the correct personal information for each employee may seem obvious but it’s really important.
Remember, it’s your responsibility to maintain employee records accurately for the duration of their tenure.
The personal information of your employees can change on a regular basis – and some of that info will be likely to affect your payroll.
No matter whether the change is down to a promotion, a salary increase after a pay review or taking time off for maternity leave, everything needs to be processed in the right way.
While it may seem like a juggling act at times, keeping accurate personal records is something you need to stay on top of.
2. Manage employee expectations
It’s vital you ensure your employees understand what they need to do in terms of remaining compliant.
One example of this is making sure they stick to your company’s expenses policy. Another is keeping overtime records accurate.
To help your employees, put procedures in place where you explain how to document expenses and overtime properly, so they don’t leave you exposed.
Put together a comprehensive set of policies and practices for all issues that affect the pay of your employees.