A small error in payroll processing can cause financial embarrassment for the organisation or can lead to employee grievances and in a worst case, invite legal actions. Here is a quick validation list to bring down chances of payroll errors.
1. Integrity of payroll input
Input providers can be finance team (recoveries/payment data), employees (data such as tax saving investment declarations, allocation of funds for tax-free allowance) etc
To avoid omissions and errors in data, you can give standard templates to input providers and obtain all information in set format
If you are using a software, make sure you feed inputs in acceptable format/syntax in the system. Ideally a smart payroll automated system should be able to throw errors when the input values don't match predefined format.
2. Input v/s Output validation
3. Validations while posting accounting entries
4. Head count validation
Cross check the HC numbers with your HR department or Recruitment teams to be sure.
5. Month-to-Month; Year-to-Year cost validation
6. Eyeballing & System checks
You can also leverage on intelligent payroll software solution with in-built validation engine to do the job effectively.
Did you know? Payroll software with in-built validation engine can reduce your payroll errors by 40%.
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