Payroll and Overhead 


Managing payroll service efficiently can be tricky when there are no proper tools. With so many taxes, layoffs and hiring, one must be alert to management so as not to fall into the trap of financial problems and even labor lawsuits. Payroll has a big impact on a company’s budget. However, it is very common for managers to be unaware of what it represents in the general budget and in finance. And to help you with the mission of efficiently managing payroll expenses, we have listed some practices that should be avoided.  

Lack of knowledge about payroll service expenses as well as overhead 

Holidays, additional vacations, insalubrities, overhead costs, licenses, overtime, extras, among other charges and benefits are part of the company payroll service. To cut payroll expenses, many managers end up reducing staff numbers and losing not only efficiency in productive areas but talented employees. It is fundamental that before any decision is made, the manager determines the effective cost of the payroll service, in order to select the most inefficient employees that can be cut. This prevents costs from being underestimated, not taking into account all the burdens and burdens. 

Unaware of expenses that can be avoided 

Some changes in employee routine can reduce payroll costs. For example, reducing overtime pay is one of the main points to reduce payroll spending. It is essential that the employer follow closely the routine of their employees in order to know if the hours worked are in accordance with the productivity and the overtime generated. Many overhead expenses can be avoided, but in order for you to get to know which costs these are you will need to have the help of professionals, such as since they are used to dealing with this kind of issue on a daily basis. 

Accounting and incorrect payment of hours worked 

One of the most common mistakes in the salary calculation process is the incorrect payment of certain benefits, increasing the amount of payroll. Payroll outsourcing is a very good option for companies that are small or even that do not want to have a full team of professionals to deal with payroll service. For example, certain benefits such as food stamps or transportation vouchers are eliminated from the payroll when the employee leaves, whether due to sickness, vacation or an accident at work. However, many companies do not perform an efficient control and continue to make payment of such credits. 

Thus, it is important that there is an efficient control of the hours actually worked as well as of all the benefits guaranteed by law, since the employee can feel injured in the payment and this causes actions in the Labor Court. 

Always count on specialized help 

The best way to reduce payroll service expenses is to get the help of a specialized team or even try payroll outsourcing. And the outsourcing process of personnel management has been the solution found by many companies, increasing competitiveness and allowing managers to spend more time on the activities of greater importance. Get to know for help! 

Through a specialized team it is possible to: 

  • reduce training and capacity expenditures; 
  • specialized technical team, with follow-up of the current legislation; 
  • security in the processes, results and receipt of the information in the correct term; 
  • security in payroll processing, among many others.