CIS payrolls can be very complex and tough to handle. And no business would want anything bad to happen to their business. When dealing with CIS payrolls there are two things that no one wants.
- Disgruntled workforce – the easiest way to handle this is by making payments in full and on time, every time.
- Attract HMRC’s attention – the best way to avoid coming under HMRC’s radar is by proper diligence and compliance throughout the process of CIS payroll.
Still, there are times when issues related to CIS payroll arise within the company. In this blog, we are listing 6 common issues related to CIS payroll and the way to avoid them.
- Mistake from an Employee
We are humans and we make mistakes time and again. With human employees working in our organizations, we always run the risk of errors that can lead to disasters. Human errors mostly happen while recording data like deductions taken, payments made, resources allocated, and recording working hours.
The best way is to employ a tailored payroll solution for the company. You can also work with a CIS payroll company as they have systems and processes designed to be as error-free and efficient as possible.
- Wrong or Delayed Payment due to Human Error
Human errors and their rectification take time, and this can lead to wrong or delayed payments. A delayed or wrong payment leads to discontent among the subcontractors and can deteriorate your reputation in the market. By outsourcing the CIS payroll services to a specialist organization can help you control and minimize such mistakes.
- Delayed or Wrong Payment due to Cashflow Issues
There is a frequent inflow and outflow of huge amounts of cash in the construction industry. And the funds may be insufficient at the time of making such payment due to a cash flow issue. Third-party specialist companies make sure that you have sufficient cash in your account when the payroll payments for the month are due. They help you get clearer visibility of the outgoing cash flow and ensure successful payments as and when required.
- Loss of Reputation Due to Many Errors
“Prevention is better than cure”. There have been cases when promising construction companies had to shut their doors because of a loss of reputation as a result of too many errors. There is a need to keep a close eye on every activity in the company, be it CIS payroll preparation, submission of tax deductions, checking compliance, or paying the subcontractors.
- Staying Up to date with the legislation
CIS tax legislations change from time to time and as a contractor, it is your responsibility to keep yourself updated with the latest changes in the legislation. With in-house staff, the responsibility becomes yours, but with a third-party CIS payroll company, you can enjoy your peace while they do the hard work.
- Keeping the Payroll Software Updated
The CIS payroll software also gets updates according to the latest changes in the legislation and the industry standards. You can either go for a software vendor that guarantees you timely updates or simply hire a CIS payroll company for the task.