Summer hiring can lead to payroll errors: How to avoid them
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When done right, summer hiring can have benefits for everyone: employers, year-round employees and seasonal hires. But done wrong, summer hiring can create a disconnected workforce and even lead to legal trouble.
As employers scramble to hire for a busy summer season and try to keep operations running smoothly amid staffing changes, it’s not uncommon for day-to-day HR functions to take a backseat to focus on talent management.
Letting essential tasks like payroll fall through the cracks amidst workforce changes and new employees can cause payroll errors and spell real trouble for employers.
Summer hiring in 2023
Luckily, amid so many workforce changes, seasonal hiring is still surging. In fact, 62% of employers plan to hire more seasonal help than in 2022, according to a survey from Snagajob.
On the flip side, almost half (47%) of employers are planning to boost wages as part of their summer hiring strategy.
But as employers scramble to fill talent gaps, essential processes like documentation and payroll can be put on the backburner.
This can create a perfect storm for costly payroll errors to arise, so it’s essential to stay proactive to avoid hefty fines and other legal trouble.
Payroll errors – and how to avoid them
“Every summer, companies are faced with new and unique hiring and staffing challenges, including ensuring compliance with new laws, sourcing quality candidates, efficiently onboarding hires, and adding new workers to their payroll,” says Jennifer Kraszewski, VP of human resources at Paycom. “Companies need to do all of this quickly and without making any payroll errors, including incorrect time punches, missing expenses, inaccurate PTO calculations, and difficulties accounting for shifting schedules or availability.”
These simple but costly mistakes can take a real toll in the form of fees, fines and lawsuits. And it’s more common than you may think, with over 54% of payroll pros reporting that they’ve suffered fines and 14% experienced a lawsuit associated with payroll mistakes.
Reduce the likelihood of payroll errors with these best practices.
- Use the right tech: “Businesses using a traditional payroll process – one that doesn’t let employees verify their pay’s accuracy before processing – can expect a 20% error rate, based on data from Ernst & Young,” says Kraszewski. On the flip side, the right tech can help identify errors before submission which saves time and ensures accuracy.
- Promote payroll literacy and transparency: Especially when it comes to seasonal hires or those who aren’t full time, employers can gloss over payroll and other technical functions, making it more likely that mistakes will occur. Instead, prioritize payroll literacy in the onboarding of every new employee and ensure current employees get regular updates and reminders on any payroll changes or crucial information, and
- Support the payroll pros: In the end, the payroll pros are the ones who are responsible for ensuring accuracy and efficiency. Encourage pros to stay up to date with new payroll changes or trends and provide extra support during an especially busy staffing season.
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