Payroll is so integral to the smooth running of a company that knowing where the risks lie is key to preventing a breakdown. This has become even truer in recent years, thanks to the increasingly mobile and global workforce we live in.
One effect that this brave new world has had on payroll is complexity. So how can you gain control over this complexity? One way is to become aware of the risks and closely monitor them.
5 Payroll Risk to Monitor
You should not only become aware of payroll risks, but also monitor how they develop, so you can quickly spot them before they take you by surprise.
At the end of this blog post, we have a link to download our free risk assessment tool. Before we get to that, here are five of the biggest payroll risk factors you should know.
Inefficient Payroll Systems and Processes
Inefficient payroll is a risk to your company’s bottom line, as well as to your reputation in the eyes of your employees. Along with human error, needless manual processes, and Excel sheets, inefficiency can also occur in additional costs due to the payment rails used in payroll.
Payroll Security Fraud
This is any illegal activity involving the manipulation of a company’s payroll system for financial gain. It can include false claims, identity theft, and embezzlement.
Incorrect Payments
Overpayments and underpayments can occur for reasons such as:
- Withholding tax at the wrong rate
- Failing to account for overtime
- Recording incorrect hours worked
- Recording an incorrect pay rate
Overpayments can result in financial losses for your company, while underpayments can be a source of financial stress for your employees. Not great either way. And either oversight could potentially turn into legal issues, which, of course, you’ll want to avoid.
Outdated Software
A failure to update software can make your payroll system susceptible to cyberattacks. This can result in data breaches, compromising employee data, such as addresses, bank account numbers, and national insurance numbers.
Currency Fluctuations
Another payroll risk involves currency. You can’t just sit and watch the currency change until you see it listed at a more favourable rate. A slight fluctuation could cost you more when it comes to meeting payroll requirements. As payroll is typically the largest single cost for most companies, tiny changes can lead to high costs over time.
Payroll Risk Prevention and Risk Assessment Tool
The biggest breakdown in an organisation typically arises when that thing that seems to be working perfectly suddenly decides not to. In business, that thing is often payroll.
Establishing a strategy that includes regular audits, and spotting potential improvements can make a big difference. Not only can these measures prevent damaging events from occurring, but they can also help to increase revenue.
Knowing how and where to begin assessing risk is a great place to start. That’s why we’ve created a free resource here at Onfolk to help you do just that.
You should become not only aware of some of the typical risks mentioned above, but also of the risks affecting your company, in particular.
Our risk assessment tool will allow you to monitor payroll risk, as well as monitor measures to keep it under control. Download our risk assessment tool today to manage your payroll risk and begin your journey to a more efficient payroll system.
Payroll is so integral to the smooth running of a company that knowing where the risks lie is key to preventing a breakdown. This has become even truer in recent years, thanks to the increasingly mobile and global workforce we live in.
One effect that this brave new world has had on payroll is complexity. So how can you gain control over this complexity? One way is to become aware of the risks and closely monitor them.
5 Payroll Risk to Monitor
You should not only become aware of payroll risks, but also monitor how they develop, so you can quickly spot them before they take you by surprise.
At the end of this blog post, we have a link to download our free risk assessment tool. Before we get to that, here are five of the biggest payroll risk factors you should know.
Inefficient Payroll Systems and Processes
Inefficient payroll is a risk to your company’s bottom line, as well as to your reputation in the eyes of your employees. Along with human error, needless manual processes, and Excel sheets, inefficiency can also occur in additional costs due to the payment rails used in payroll.
Payroll Security Fraud
This is any illegal activity involving the manipulation of a company’s payroll system for financial gain. It can include false claims, identity theft, and embezzlement.
Incorrect Payments
Overpayments and underpayments can occur for reasons such as:
- Withholding tax at the wrong rate
- Failing to account for overtime
- Recording incorrect hours worked
- Recording an incorrect pay rate
Overpayments can result in financial losses for your company, while underpayments can be a source of financial stress for your employees. Not great either way. And either oversight could potentially turn into legal issues, which, of course, you’ll want to avoid.
Outdated Software
A failure to update software can make your payroll system susceptible to cyberattacks. This can result in data breaches, compromising employee data, such as addresses, bank account numbers, and national insurance numbers.
Currency Fluctuations
Another payroll risk involves currency. You can’t just sit and watch the currency change until you see it listed at a more favourable rate. A slight fluctuation could cost you more when it comes to meeting payroll requirements. As payroll is typically the largest single cost for most companies, tiny changes can lead to high costs over time.
Payroll Risk Prevention and Risk Assessment Tool
The biggest breakdown in an organisation typically arises when that thing that seems to be working perfectly suddenly decides not to. In business, that thing is often payroll.
Establishing a strategy that includes regular audits, and spotting potential improvements can make a big difference. Not only can these measures prevent damaging events from occurring, but they can also help to increase revenue.
Knowing how and where to begin assessing risk is a great place to start. That’s why we’ve created a free resource here at Onfolk to help you do just that.
You should become not only aware of some of the typical risks mentioned above, but also of the risks affecting your company, in particular.
Our risk assessment tool will allow you to monitor payroll risk, as well as monitor measures to keep it under control. Download our risk assessment tool today to manage your payroll risk and begin your journey to a more efficient payroll system.
