When you are a business owner or manager, there are “hidden costs” everywhere. In addition to the actual numbers that you see on the spreadsheets, your company is affected by expenses that may never show up there—lost productivity, missed opportunities, inefficiency, and other hard-to-quantify factors. Even though these factors are largely invisible, they are all too real, and they greatly influence what the final numbers in those spreadsheets look like. For companies in Charlotte, payroll is one of the areas most plagued by these types of “hidden expenses.” Here are four of those expenses that are hard to see, but that waste a lot of money for managers that aren’t able to lock them down.
  1. Tax Penalties

Tax law is not only confusing—it is also constantly changing! If your Charlotte payroll department is incorrectly calculating deductions, classification of employees, and withholdings, it may not come to light until those incorrect calculations have created a huge problem. Aside from the fact that you will have to spend many extra hours correcting the mistakes and dealing with their aftermath, there is the possibility that you will face state and/or federal penalties for failing to adhere to the rules. This is one area where it is essential to stay in tune with the ever-changing regulations and double-check to make sure every employee’s pay processes are in compliance with them.

  1. Overpaying Employees

If any given employee’s paycheck is a few dollars too low, you can be sure that you will hear about it! Employees are very skilled at spotting errors that lower their pay, but they seem to become mysteriously unobservant when errors increase their pay incorrectly. If you overpay your workers due to an incorrectly calibrated system or simply due to human error in data entry, do not count on them coming to you to point out the problem and ask you to pay them less money! Avoiding this hidden Charlotte payroll expense is a matter of having a dependable infrastructure and agents in place that can spot and correct mistakes before they result in the wrong number printed on an employee’s paycheck.

  1. Wasted Payroll Man-Hours

Even if your diligent, dedicated manager in charge of payroll is able to get every paycheck out in the correct amount, every tax withholding correct, and all vacation/sick days/overtime pay accurately recorded, there could still be an important hidden expense that you are paying: the amount of extra time that the manager had to spend on payroll tasks. Instead of spending many hours researching changing tax laws, bringing your system into compliance, managing deductions and withholdings, entering data, checking for mistakes, communicating with employees when there seems to be a discrepancy, double-checking for mistakes, and finally printing and distributing checks/handling direct deposits, that manager could have been active in other areas that more directly grow your company.

  1. Losing Your Best Employees

High quality employees have little reason to stick with a company that is constantly making mistakes in the area of payroll. Charlotte is full of businesses that would love to have that skilled, experienced employee working for them, and when their income is jeopardized by an unreliable payroll department, the logical choice is to consider whether one of those businesses would treat them better. Losing your most productive employees, the ones who are the key to your company’s growth, is a massive hidden expense that will continue to affect you for years—as long as that employee could have been making sales, coming up with great ideas, and helping to build your business in other ways.

Eliminate Hidden Charlotte Payroll Expenses

There is only one solution to eliminating these hidden expenses: a payroll department that is structured to prevent mistakes completely and that is staffed by agents thoroughly trained in all applicable regulations. Many businesses, recognizing the money-wasting dangers of handling payroll on their own, are turning to professional employer organizations like Complete Employee Services to provide a fully functional, high-powered human resources department that can streamline payroll, benefits, insurance, and other administrative activities that are notorious for their hidden expenses. If you would like more information on how Complete Employee Services takes the hidden expenses out of the Charlotte payroll process, please get in touch with us today!