The Real Cost Of Payroll Errors And How To Avoid Them

Learn how to mitigate payroll errors and avoid costly consequences with HR technology

Employees don’t just work to get paid — they work to get paid correctly.
 

Despite how crucial payroll accuracy is, Ernst & Young (EY) reports 1 in 5 payrolls contain errors. Each error costs a business $291 on average. One 1,000-employee business EY studied spent nearly $1 million fixing preventable mistakes each year.

Any one of these errors could require fixes like:

• wires
• voids
• reversals
• cutting a rushed paper check

These issues steal time from HR and payroll professionals. How much? Try 29 weeks (over half a year) for common errors alone.

That’s not to mention the cost of non-compliance. EY found fines can reach up to $100,000 in a year. Payroll compliance problems are not just expensive; they frequently lead to turnover. Over half the organizations with compliance issues cut employee headcount. And turnover triggers more costs associated with:

• hiring
• onboarding
• training

This situation not only frustrates employees but also can lead to a negative view of the organization.

Are you tired of payroll errors stealing far too much of your time?

In a new webcast, Steve Boese, President & Co-Founder, H3HR Advisors, Trinity Thomas, Workforce Marketing Partner, Paycom, and Ken Nagle, Senior Manager, Quantitative Economics and Statistics, Ernst & Young discuss how HR can mitigate these errors, what are the consequences of payroll errors, the five most common issues and what they cost, and how HR tech helps HR professionals invest more time in higher-reaching goals and initiatives.

Click to view the webcast