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It is that time of year again: payroll year end! For nine years, I’ve supported clients in implementing Human Capital Management (HCM) systems and developing HR and Payroll processes. During this time, I’ve encountered several common misconceptions about payroll year end. Let’s set the record straight about the top four misconceptions and prepare for a smooth payroll year-end.
ONE: “That’s Payroll’s Responsibility.”
This misconception often surprises me. Achieving peak performance in any business operation, including payroll, requires collaboration among various teams. Understanding each other’s roles is important, but identifying opportunities for collaboration is crucial. A study by the Institute for Corporate Productivity1 found that companies that encourage collaboration are more likely to be high performing by fivefold. If you haven’t assembled your year-end team, now is the time. This team can include representatives from HR, Benefits, Payroll, Accounting, and IT. Engaging all relevant stakeholders will enable you to create a comprehensive and effective plan.
TWO: “Don’t you just have to click a button?”
I wish it were that simple! Despite being called the “year-end process,” the tasks related to year-end filings begin long before the first payroll of the year and continue through each payroll cycle
