Employees pay for tax system errors – again
So, yet again it appears that system inaccuracies are failing employees who simply want to be paid fairly to do a job.
News that more than five million workers have paid the wrong amount of tax, with a vast number now facing attempts to claw it back by HM Revenue and Customs, is pretty shocking in a day and age where technology should be automating these processes, and accurately.
With these ongoing errors occurring (despite the introduction of a multi-million-pound reform meant to improve the system’s accuracy), what can employers do to protect their employees from miscalculations? For a start, a two way feed between the HR system and the payroll systems around the world would give the company full visibility on exactly what an employee has actually been paid. Only 10 percent of companies have this now. With integrated HR and payroll, this information is automatically populated in both places and therefore a larger number of people have visibility of and transparency of payment – including being able to identify where and when errors have occurred. How much more confident and empowered would your workforce feel if they had access to this sort of self-service functionality, rather than being left in the dark to be delivered bad news?
However, despite these obvious enhancements that could be made, research tells us that around 88 percent of organisations still don’t link their employees to payroll.
Critically, it’s about the passing of accurate information to and from HRMC. Having an automated HR system that pulls this info from payroll helps to eradicate errors and therefore prevents these mistakes hurting the employees – and even more to the point, makes for a motivated workforce.