{"id":7812,"date":"2022-01-27T13:49:19","date_gmt":"2022-01-27T18:49:19","guid":{"rendered":"https:\/\/www.sage.com\/en-ca\/blog\/?p=7812"},"modified":"2026-01-15T11:50:03","modified_gmt":"2026-01-15T16:50:03","slug":"payroll-processing-key-things-hr","status":"publish","type":"post","link":"https:\/\/www.sage.com\/en-ca\/blog\/payroll-processing-key-things-hr\/","title":{"rendered":"Payroll processing: 10 key things HR managers need to do"},"content":{"rendered":"
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\n\t\t\t\t\t\t\tMoney Matters<\/a>\t\t\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t
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\n\t\t\t\t\t\tPayroll processing: 10 key things HR managers need to do\t\t\t\t\t<\/h1>\n\t\t\t\t<\/div>\n\n\t\t\t\t\t\t\t\t\t

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\n\t\t\t\n\t\t\t\t\"Ashley\t\t\t\tAshley Thompson<\/span>\n\t\t\t<\/a>\n\n\t\t\t\t\t<\/div>\n\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t<\/div>\n<\/div>\n\n\n\n\n\n

As an HR manager, you have the critical responsibility of ensuring everyone is paid correctly and on time. Even one mistake can put employees\u2019 trust and the organisation\u2019s reputation at risk.<\/p>\n\n\n\n

Payroll processing, therefore, is a key task and one that need to be done in the right way.<\/p>\n\n\n\n

Research by Marlin PR on behalf of Sage shows that 35% of workers would find another job if their employer paid them incorrectly even once.<\/p>\n\n\n\n

Furthermore, 51% would lose trust in their employer and resent them.<\/p>\n\n\n\n

What is payroll processing?<\/h2>\n\n\n\n

Payroll processing is the administration of employee pay based on employee type, status, salary, wages and deductions.<\/p>\n\n\n\n

It also involves filing reports and paying employment taxes to CRA.<\/p>\n\n\n\n

These calculations must be made in enough time to follow the organization’s pay schedule, and in compliance with applicable regulations.<\/p>\n\n\n\n

Payroll processing can be complex to manage because of its many varying factors, such as pay scales, employee classifications, promotions and terminations.<\/p>\n\n\n\n

It\u2019s essential to have checkpoints in place at the critical points of payroll processing for as much error prevention as possible.<\/p>\n\n\n\n

Here are 10 things that HR managers must do to ensure these calculations are accurate.<\/p>\n\n\n\n

1. Start with clean data<\/h2>\n\n\n\n

Common mistakes such as employee misclassifications happen during onboarding, which impacts your employees\u2019 health insurance and retirement benefits, and tax withholdings.<\/p>\n\n\n\n

Add a checkpoint here to confirm the employee classification is correct and for your employee to verify their personal information and tax code<\/a> are accurate before their first payroll run.<\/p>\n\n\n\n

2. Verify timesheet information<\/h2>\n\n\n\n

For your timesheets, you should have a system in place that checks for inconsistencies with employee type, hours worked and pay scale.<\/p>\n\n\n\n

A preventative measure here reduces the risk of overspend on payroll.<\/p>\n\n\n\n

3. Know your total payroll costs<\/h2>\n\n\n\n

You need to know how much each employee will cost the business beyond their wages to spot inconsistencies during each pay period. Always factor in gross wages, benefits, tax and National Insurance withholdings for each employee.<\/p>\n\n\n\n

You also need to consider holiday pay, sick pay, maternal\/paternal leave, tips, bonuses, pensions and suspensions as they apply.<\/p>\n\n\n\n

4. Produce and distribute payslips<\/h2>\n\n\n\n

You must give each employee and worker a payslip<\/a> detailing their:<\/p>\n\n\n\n