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4 Key Mistakes to Avoid during Payroll Processing in Kenyan Businesses

By
Carol
Nduta

Organizations view Payroll Processing in Kenyan Businessesas an important function that is under the control of the HR department. However, mistakes in payroll processing can cause a negative impact on the payroll and even weaken the organization’s reputation.It's therefore important to know some of the common mistakes to avoid during Payroll Processing in Kenyan Businesses

1. Non- compliance

Payroll laws and regulations change. It is important for an organization to be aware of the changes so as to meet the deadline. This is to avoid penalties due to late payments to the relevant to statutory departments. Having a software that allows the creation of a calendar to check for updates to all the relevant laws.

2. Payment schedule

Employees are more satisfied and productive when they know that their salaries and wages will be sent to their accounts on time and efficiently. Delayed payments to employees cause problems and the rate at which you retain employees in the organization will go down. Having a consistent paymentschedule be it bi-weekly or monthly will assist in keeping employees informed.

3. Record- keeping and data entry

Poor record-keeping affects the whole pay-cycle as the wrong data will be entered into the system leading to incorrect payment to employees. This causes the organization issues such as underpaying or overpaying employees. Therefore a good record-keeping system is a must.

4. Misclassification

Employee classification can be complicated and confusing to some employers. This is because they are part-time employees, full-time employees, temporary and permanent employees. Misclassifying employees causes incorrect deductions to an employee's salary or even missing a deduction during payroll processing.

  • Wait there’s more!

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