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Is Payroll Costing Your Business?

Nov 13, 2023 / Haroon Juma / HR & Payroll Blogs

Payroll Mistakes

Payroll and benefits administration is a critical component of Human Resource Management. If not properly managed, the effects of poor payroll and administration are easily felt. Inaccurate payroll can also cost businesses significant losses on the bottom line if they erroneously overpay staff.

Sometimes it only takes one payroll mistake and you’re employee satisfaction issues, legal procedures and a tarnished business reputation.

Step up your payroll game by following our guide to a controlled payroll model.

Be Crystal Clear

Keep it transparent. Assign designated personnel to address all payroll information inquiries and clarifications. Keeping everything accessible to boost employee morale and trust.

Ensure your payroll processes are on point and ensure everyone’s on the same page.

Stay in the Loop and Up to date With the UAE Labor Laws

UAE Labour laws evolve and change from time to time. Therefore, it is important to have resources in place who are in-charge of keeping abreast on legislative changes.

Find a Reliable HR Professional / Partner

To alleviate the tediousness of payroll management, partner with a payroll firm such as ours in the UAE. We have automated various aspects of the process for businesses. This will streamline calculations, maintain accurate records, and improve overall efficiency. Not only will they ensure you are compliant, but they’ll also free you up from time-consuming tasks and let you focus on growing your business.

Payroll Mistakes That You Should Avoid

Incorrect Payroll Definition

Setting payroll incorrectly can have significant negative consequences for both employees and the organization. Using reliable software, processes, staying up-to-date with regulations, conducting regular audits, and seeking professional assistance when needed are some strategies that can help minimize the risk of setting payroll wrong.

Make sure you understand all the aspects of payroll affecting policies or outsource it to someone who does.

Avoid Paying Salaries Late

Companies can be busy with day-to-day operations and growing the business, but this should not be a valid reason to delay payroll. Aside from your financial stress and decreased employee morale, this will also attract some unwanted attention and possible fines from WPS (Wage Protection System) non-compliance.

Non-Compliance Record Keeping Requirements

Payroll isn’t just about paying salaries; with the introduction of Corporate Tax, employee salary information record keeping is now an additional legal requirement. Consult with Tax and labor law professionals to mitigate risks under legislative UAE taxation and labour laws.

Uncontrolled Employee Procedures

Paying your employees too little or too much accidentally can cause significant cash impacts or employee dissatisfaction. Payroll mistakes and issues can reduce upto 5% of your working capital and the bottom line. Not a pleasant experience for anyone! Ensure you have a strong system in place that cross-checks everything.


If you are a small business with limited time and expertise, eliminate all the tedious work and confer with HRM and UAE Labour professionals to ensure compliance with MOHRE rules and statutory requirements such as SimplySolved.

Many small and medium enterprises manage processing payroll and HR on their own assuming this saves cost, failing to see the benefits of payroll outsourcing services.

Outsourcing HR can be a smart investment as it helps you reduce the risk of compliance and governmental issues, it gives you access to sophisticated and systemized HR platforms, and payroll processes become more accurate and efficient, all-in-one package that is practical and cost effective.

Remember, a smooth payroll process is not just about paying salaries on time; it is about setting a foundation for your business’s success.

How SimplySolved Can Help You?

If your organisation is seeking for a more efficient and cost-effective measures to better your business operations related to HRM and Payroll Management Systems, Simplysolved delivers comprehensive HR & Payroll Management services which reduce cost, improve compliance, streamline processes and automation and offer sophisticated WPS ready and MOHRE compliant HRM systems.

Check out our HRM-In-A-Box promotional offers and contact us to know how we can help you better.

Partner With SimplySolved

Serving over 200+ clients we know the challenges your business faces operating cost effective, compliant and efficient back office operations in Finance, Tax, Employee Managent & Payroll or ERP Implemenation & E-Commerce Integration.

As an FTA Accredited Tax Agency with ISO 9001 Quality & 27001 Information Management Certification, we offer a quality-based approach to our services supported by dedicated team of certified professionals.

We support our clients with defined processes, platforms and expertise to deliver advisory, project and outsourced services in Accounting, Tax, Auditing, Employee Management & Payroll, and ERP & E-Commerce Integration. Our offerings are specially designed to meet the UAE Regulations to put you in control of your information, comply to the regulations and help you make better business decisions.


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