Common payroll mistakes (and how to avoid them)
- Inconsistent taxable earnings definitions → standardize and enforce in software.
- Wrong pension base → pick BHT or Gross and apply consistently.
- NHF applied incorrectly → confirm rate/base and apply monthly correctly.
- No audit trace → always store a payroll register and calculation breakdown.
- Manual spreadsheet edits → leads to drift; lock formulas and use a system.
A simple prevention workflow
- Document payroll policy.
- Automate calculations.
- Require approvals.
- Reconcile every month-end.