Computational errors made by human resources professionals when entering data manually into a payroll system can cost the company heavily.
A recently published report by Robert Half reveals that such computation mistakes have the potential to cost a company anywhere from 1 per cent to a staggering 8 per cent of annual gross payroll.
Payroll non-compliance and mistakes have serious implications that can go beyond simple monetary loss to the company due to overpayment. In Australia, penalties can be imposed on employers for underpayment of wages at the discretion of the Federal Magistrates Court. The Fair Work Act is the relevant body of law and the Fair Work Ombudsman (FWO) will prosecute the case.
However, employers can prevent or minimise these errors and avoid any payroll nightmares by implementing a suitable time and attendance system that will safeguard against human error and boost payroll accuracy.
Mitrefinch Time and Attendance software features robust inbuilt reporting capabilities to ensure instant access to information at any time.
Mitrefinch Australia will be presenting at this year’s Australian Payroll Association Conference in Melbourne in October to highlight these issues, as well as the potential benefits to companies with payroll issues.