Why Payroll Should Never Be Calculated by Hand

Filed under: Payroll

Tagged with: · ·

Manual payroll processing might seem like a possible solution to help you save money. But, the truth is that there are too many potential mistakes that can happen, which might cost you more money in the future. If you choose to calculate paychecks by hand, you need to be sure that you are current with tax rates, laws, and calculation methods to ensure that everything is completed with precision.

Unfortunately, many people don’t have the attention to detail that is required to avoid these common mistakes. If there are errors with the payroll processing, then it could cost a lot of money due to penalties, court fees, back taxes, or back wages that are due.

Here are four problems of manual payroll calculations:

Mark Rowley, Owner
RandR Payroll Services

  1. Wrong Calculations: If you use the wrong tax rate, then it could have a domino effect of consequences on your company. It’s easy to make errors with manual payroll calculations. These problems can be avoided by implementing a digital system.
  2. Incorrect Information: How often does information get misplaced when you are handling manual payroll calculations? It is easy for a small slip of paper to get lost in the mess of the office. Don’t rely on paperwork and printed documents for your payroll information. Instead, everything should be digitally stored in the cloud so that you always have backups to verify the processing.
  3. Wasted Time: As a business owner, you shouldn’t be spending time on busy work like payroll calculation. Instead, direct your attention to employee management and business development to help your company grow.
  4. Outdated Tax Rates: Also, remember that the tax rates might change from one year to the next. If you continue with the same payroll calculations, then you might miss changes in the industry. An automated payroll processing system will ensure that you are always up-to-date with current state and federal tax rates.

You don’t need to waste your time with manual payroll calculations. Instead, bring in a team of experts to handle the payroll processing for your company. Contact R&R Payroll & Bookkeeping Services to learn more about the services that are offered: (951) 296-0412.