A smooth processing of company payroll in UAE is like oxygen – you hardly ever notice it when it is there. However, as soon as it gets missing, there is nothing else you can think about. This makes payroll among the least appreciated HR functions even when it is the most important within a business. When it is done well, the payroll of organizations keeps staff members satisfied. What’s more, it helps an organization steer clear from legal consequences. If there are payroll errors that crop up, the mistakes can easily impact in a way that ripples throughout the entire company.
Avoiding or preventing the most common pitfalls in payroll processing takes the adoption of various strategies. Incorporating the following elements onto your company’s payroll process will help you catch mistakes before them even happening:
Consider Payroll Outsourcing
The best way in keeping mistakes away from your company and causing major disruptions? Opting for payroll outsourcing in UAE. The right outsourced payroll team will manage the entire payroll process and update all important employee information including hours, wages, withholdings and account numbers. Then, the outsourced payroll specialists will communicate the changes to you through regular reporting, eliminating the need to do double entry. What’s more, you also have the option of assigning the task of UAE WPS or Wages Protection System set up and maintenance to the experts, ensuring full regulatory compliance for your company.
The right payroll partners also sync with the current HR department and system of your business. They will make it incredibly convenient for your internal teams to file reports to third parties, run reports, and distribute pay stubs among other things.
A lot of payroll mistakes are borne from payroll employees being incompetent and/or not having the entire picture or at least the correct information. UAE legislation, in particular, are constantly changing. They can also vary, depending on which jurisdiction a company belongs to; it is absolutely crucial for a payroll team to be able to stay updated with the current policies for where the organization is located or registered, most especially if the business has a global or national presence.
Double-checking all assumptions and doing basic research can already go a very long way in avoiding payroll errors. A company has to know and fully understand all applicable legislation, including the differences between non-exempt and exempt, as well as the classification of employees.
Run reports before processing company payroll
If you have an access to the payroll database of your company, then run a couple of key reports before you process company payroll. This will help you catch errors and prevent any more from occurring. We suggest you run the following payroll reports in order to make sure that all of your company check accounts are, in fact, accurate:
- Payroll register – the report will allow you to check all the payroll details in the form of a summary;
- Deductions summary – it will provide you with a summary for all deductions applied on each staff member, allowing you to check the amounts for accuracy;
- Cash requirement – the report will show the amount of money that your business has to have in order for it to process payroll. The report has to contain several different categories such as deductions (mandatory and voluntary), wages, etc.
Retain a checklist
You will never go wrong, most especially when processing payroll if you keep a checklist that’s tried and true. A payroll admin, or even you as the business owner, has lots of things to keep track of and aware of. Yes, even when you have a team of payroll specialists to support your different company processes. If you have a comprehensive checklist, you will be able to go through all steps of all processes every single time. You can review each step or piece, in order to make sure that everything is carried out perfectly and as accurately as humanly possible.
You may also need a list for all of your new company hires, all the deduction changes made, all the pay changes, as well as other updates. They are to be kept in a central location and organized by each pay period. When you are working or processing company payroll, review your list so you can make sure changes that are made are precise. If this sounds like too much of a hassle for you, you can emulate most SMEs in UAE that outsources their company payroll.
Bonus tip: always prioritize regulatory compliance.
Staying on top of all company processes, including regulatory compliance, can be very tough. This is understandable, especially for small business owners that wear several different hats. However, you also want your business to not drown in penalties and fees for violations related to payroll and employment regulations. It is, therefore, in your best interests to prioritize full compliance.
To know more about payroll outsourcing in Dubai, UAE, call us here in Payroll Middle East today!