Are you stuck in a never-ending cycle of complicated payroll issues in the past year, wondering if there is a solution?

From intricate legal compliance issues to the pressing concerns of data security, businesses encounter hurdles that need swift resolutions. 

Payroll does not have to be a time and resource-consuming process. There are plenty of ways to reduce the amount of time you spend on payroll. Therefore, this blog will discuss five key payroll challenges from 2023 and provide actionable insights to address them in 2024. 

Keep reading to know more.

5 Payroll Challenges from 2023 to Resolve in 2024

There are the five major payroll issues that businesses have faced in the past year that can be resolved in 2024:

Legal Compliance and Statutory Challenges

One of the biggest challenges, businesses face, when it comes to payroll compliance is staying compliant with labor laws, state laws, and statutory requirements. These regulations can be complex and constantly changing, which means that there can be a lot of room for error.

If you do not follow these regional guidelines, you could face significant fines for your business. Moreover, remote work is gradually increasing for companies. Therefore, the solution to payroll compliance challenges is to invest in automation and continuous updates to your payroll software. Another way is to outsource payroll management to experienced professionals to stay updated with evolving regulations with the assurance and accuracy you need.

Tax Filling Issues 

Timely and accurate payroll tax filings are tricky but vital for business, as delays or errors can lead to penalties and interest charges, adding financial strain to businesses. Compliance with these standards in 2024 is vital, ensuring businesses avoid penalties and maintain financial responsibility.

It accurately calculates and withholds taxes from employees’ paychecks, as well as pays the business’s share of payroll taxes on time. 

As a solution, it is advisable to delegate payroll responsibilities to a third-party entity to alleviate concerns related to legal complexities. Third-party services bring specialized expertise and can promptly adjust to industry trends or regulatory changes.

Employee Data Handling and Training

Managing employee information is like managing a complicated puzzle without errors. Payroll is all about financial information about the employees, including salary, benefits, perks, bonuses, and other benefits like health insurance, travel and accommodation, credit, etc. 

To solve this, direct deposits can be simplified through payroll management software, offering direct deposit services for convenient salary distribution directly to employees’ bank accounts. Eliminate physical document storage. Provide continuous training to personnel managing payroll data to reinforce optimal practices for ensuring data security and privacy. 

Payroll Backup and Accuracy

Confronting payroll challenges remains crucial for business owners, particularly startups. Businesses often struggle with payroll accuracy, streamlining data entry, and precise calculations. In addition, new businesses often discard or improperly file payroll, which can later cause trouble in payroll tracking.

Therefore, to enhance accountability, businesses should preserve a backup of payroll data, preferably on a cloud platform or an external device, minimizing the risk of data loss. Also, implementing a reliable time-tracking system, staying alert on tax rates, and implementing payroll software contribute to seamless payroll processes, mitigating potential errors and their consequential impacts.

Concern on Data-Security Breaches

Nowadays, cybercrime and data breaches are on the rise, making payroll data protection a challenge. This increased risk requires the need for strong cybersecurity defenses. Not only does a breach compromise confidential employee data, but it also exposes businesses to potential regulatory non-compliance issues.

Therefore, payroll service providers need to allocate resources to strengthen their cybersecurity defenses against the ever-changing and ever-evolving cyber threats of 2024.

It includes implementing encryption, stringent access controls, consistent updates, employee training, and dependable backup and recovery strategies. Another great alternative is outsourcing payroll to a reliable provider with robust security protocols. These combined measures protect payroll data against potential threats, assuring secure processing.

As we move towards 2024, addressing payroll issues requires strategic actions. Beyond automation and strong security, businesses of all sizes can benefit from outsourcing payroll to a reliable PEO partner.

Therefore, if you are in need of expert payroll services to streamline processes and compliance do not hesitate to contact us. Check out our blog for more information on related topics, leading your business forward in 2024!

Reference Links

https://www.softwaresuggest.com/blog/payroll-problem-solutions/

https://medium.com/@bestarion/8-common-payroll-compliance-errors-to-avoid-in-2024-ae43060c8806

https://myxalary.com/blog/challenges-of-payroll-processing/

https://www.peoplehum.com/blog/payroll-challenges