Which of the following is not a method to reduce payroll costs?

Which of the following is not a method to reduce payroll costs?

• A. Auditing payroll for inaccuracies.
• B. Offering overtime pay to reduce errors.
• C. Scheduling part-time employees.
• D. Utilizing technology for payroll processing.

Answer: (B)

Offering overtime pay to reduce errors is not a method to reduce payroll costs. In fact, overtime pay typically increases overall payroll expenses since it involves paying employees at a higher rate for hours worked beyond their standard workweek. While it may seem like a solution to ensure that tasks are completed accurately, it ultimately does not contribute to reducing costs. In contrast, auditing payroll for inaccuracies helps identify and eliminate overpayments or miscalculations, which can lead to significant savings. Scheduling part-time employees allows for the flexibility of labor costs and can help manage workforce expenses based on demand. Utilizing technology for payroll processing can streamline operations, reduce the time spent on payroll tasks, and minimize errors, all of which contribute to lowering payroll costs in the long run.

Offering overtime pay to reduce errors is not a method to reduce payroll costs. In fact, overtime pay typically increases overall payroll expenses since it involves paying employees at a higher rate for hours worked beyond their standard workweek. While it may seem like a solution to ensure that tasks are completed accurately, it ultimately does not contribute to reducing costs.

In contrast, auditing payroll for inaccuracies helps identify and eliminate overpayments or miscalculations, which can lead to significant savings. Scheduling part-time employees allows for the flexibility of labor costs and can help manage workforce expenses based on demand. Utilizing technology for payroll processing can streamline operations, reduce the time spent on payroll tasks, and minimize errors, all of which contribute to lowering payroll costs in the long run.