Accuchex Blog

Payroll management is a key component of a company's relationship with employees. Sustaining your workforce depends on it and mistakes can jeopardize that relationship.

[This article was originally published on January 10, 2017 and has been updated and revised.]

Payroll management is one of the consistent responsibilities and challenges for every business. HR and payroll staff must be aware of the continual changes in rules and regulations, any new and updated forms, and the multiple layers of compliance that is required at the federal, state and local levels.

How you manage payroll may be one of the most critical operations of your business. And effective payroll management can be a challenge even with the best software.

[This post, originally published in March 2015, has been revised and updated.]

It requires more than a software solution to implement efficient, accurate, and cost-effective payroll management processes.

Your payroll process can be relatively simple or, if your organization is large or growing rapidly, more complex and challenging. Either way, a payroll audit is in order.

One of the common occurrences in many businesses is that time can go by without any significant efforts made to ensure that payroll is being processed accurately. The purpose of an audit is to verify that your financial statements reflect a true and accurate record of your organization's results during the financial year.

All payroll is not created equal. This is especially true of certified payroll for government contracts and public works projects. 

So, what is certified payroll? A brief explanation is found on the State of California Department of Industrial Relations (DIR) website:

"Contractors and subcontractors on most public works projects are required to submit certified payroll records (CPRs) to the Labor Commissioner using DIR's electronic certified payroll reporting system."

That's fine, but a bit brief and high-level, so let's take a deeper look at certified payroll.

As your business grows, so does the volume of administrative work. And when your HR and payroll staff are overwhelmed, more costly mistakes occur.  

[Editor's note: This post was originally published in January 2017 and has been completely revamped and updated for accuracy and comprehensiveness.]

Increasing numbers of mistakes with payroll processing serve as warning signs that indicate your payroll team may need more staff and and better resources. On the other hand, it's very likely that it's simply time to consider other options for managing your payroll process, such as outsourcing.