The importance of payroll accuracy

It is critical for HR to maintain accurate payroll records.

It is critical for HR to maintain accurate payroll records.

It is the responsibility of every business to ensure that employees are accurately compensated for the number of hours they have spent working. Despite this well-known requirement of running a business, workers do not always receive the full amount of wages they are entitled to. 

In some cases this may be intentional, but chances are good that more often than not, it is caused by an oversight. Tasked with the responsibility of producing accurate payroll information, it is up to HR to maintain an HR system that can track the necessary details to ensure employees are compensated.

Even large companies are prone to mishaps when it comes to payroll. It was reported recently that professional networking site LinkedIn was found to have been withholding over $3 million in overtime back wages. According to an article from HumanResourcesOnline.net, the U.S. Department of Labor, which conducted the investigation, said in a statement that LinkedIn had "failed to record account and pay for all the hours worked in a work week." 

Paying employees in a timely and accurate fashion is an important part of keeping them satisfied with their jobs and willing to work for your company. Since it is up to HR to help retain valued workers, it is in the best interest of the company that they are paid what they are owed. It is also an important step in legal compliance. 

Managing HR and payroll details can be a challenging task. An experienced HR consulting business will work with your company to develop and implement the HR software system that meets the unique needs of your business, ensuring that payroll is accurate and your business stays compliant.