3 Best Practices For Ensuring Payroll Accuracy

Why accurate payroll is more than just numbers—and how to get it right

Payroll accuracy is a critical aspect of any business, directly impacting both employees and the company's bottom line. This article presents HR expert–backed strategies to enhance payroll precision and minimize errors. From leveraging custom verification sheets to implementing automated systems with human oversight, these best practices offer practical solutions for businesses of all sizes.
 

• Custom Verification Sheets Boost Accuracy
• Test Runs Catch Errors Before Payday
• Detailed Checklists Prevent Payroll Mistakes

Custom Verification Sheets Boost Accuracy

We use custom payroll verification sheets that have transformed our accuracy rates. I designed this simple document with specific boxes for employees to verify their hours, overtime, bonuses, and deductions before each payroll run.

The sheet puts verification directly in employees' hands, as they know better than anyone if their overtime looks correct or if that bonus was supposed to be included in this pay period. We have created a rhythm where staff complete these by Tuesday, managers check by Wednesday, and payroll processes on Thursday.

Our error rate dropped from over 2% to less than 0.3% after implementing this system. The biggest improvements came in overtime calculations and commission classifications, areas that used to cause constant headaches.

I love that it creates a perfect paper trail for compliance, too. When tax authorities have questions, we can immediately show the verification process for any payment they are reviewing.

Now, our payroll team is not constantly putting out fires anymore. They can focus on more meaningful work instead of endless corrections and frustrated employees wondering where their money is.
 

Susan Andrews, HR Consultant, KIS Finance

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Test Runs Catch Errors Before Payday

We started conducting a test payroll run a couple of days before the actual one, and it has been a game-changer. It is not automated or fancy; it is just a manual review with the HR team and a couple of managers who know what to look for.

We are not just checking if the hours are correct. We are watching for unusual spikes, missing deductions, or anything that seems off. If someone's paycheck is significantly higher or lower than usual, we pause and investigate why. Nine out of ten times, it is a small error: a missed update, incorrect timesheet approval, or something that did not sync properly from our benefits system.

Catching these issues early means we are not scrambling on payroll day. It has reduced corrections after the fact, and it has helped us avoid compliance issues, too. It is simple, but effective.
 

Vikrant Bhalodia, Head of People Ops, WeblineIndia

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Detailed Checklists Prevent Payroll Mistakes

One method that has been really effective for us is using a detailed payroll checklist every pay period. It walks through each step, such as verifying hours, reviewing bonuses/commissions, double-checking deductions, and confirming state-specific requirements. Nothing gets processed until every item on the checklist is checked off.

This approach has helped us catch small mistakes before they turn into big problems. It also keeps us consistent, even when someone else has to step in and run payroll. Beyond reducing errors, it has helped us stay compliant by making sure we are not overlooking things like updated tax rates or classification rules. It may be simple, but it works!
 

Noah Musgrove, HR Support Specialist, Liberty Financing LLC

Brett Farmiloe is CEO & Founder of Featured.