Using Payroll Services? We Hope
By
VendorSeek
Are you in business to make money? Sure, we all are. How are you getting paid? Workers depend on getting the fruits of their labor and rely on nothing going sour with the process. Has your company ever experienced any "glitches" or been susceptible to penalties due to law transgressions because of payroll? If you have, or are worried about such conundrums, we have the answer - use payroll services.
Providers are cost-effective, experienced, dependable, and well-trained. Payroll entails keeping records up-to-date, maintaining schedules, keeping track of the status of employees, and understanding tax regulations. Does your business have the time to devote to payroll? What else could you do with the time saved by allowing professionals to handle these matters?
The following scenarios are quite common in the world of payroll. These mistakes are costly, take time to remedy, and take away from the positive image and impetus of your business. Read through them and by the end you may thank us for reminding you that you have options.
No records? Regulations differ from state-to-state, but keeping payroll records is important. Time sheets, cancelled checks, and W-4s need to be kept for reference between four to six years. You don't want the IRS to hit you with a penalty for not keeping records (it can be quite costly and is all too common).
Correct overtime pay? This is an area that has recently been focused on more and more. Some companies do not offer employees the option of working overtime when they are eligible. Guidelines can be confusing and costly if misunderstood.
Who owes who? Did you know if an employee is under your payroll system and owe child support or other forms of court-ordered payments it is your responsibility to make sure that owed party gets paid? A mistake here will create the instance of you owing money too.
Security The information privy to the payroll department is highly confidential and is not to be shared or seen by anyone except the department and senior executives.
Software Payroll software can be effective and efficient, but it is only as good as the scope of their abilities and those doing the operations. There have been many instances of users assuming, erroneously putting in information, and committing other mistakes while using the software.
Classifications of workers Are all temporary, full-time, part-time, consultants, and independent contract employees properly classified? We hope so. This information is vital in reporting for tax purposes.
1099s Do you need to send a 1099? If you have independent contractors working for your business who receive more than $600 per year, you do. They need to receive this form by January 31 of the following year.
Deadlines Missing deadlines and making late deposits will result in your business incurring penalties and interest charges; this goes for local, state, and federal agencies.
Backup? How many people work with your payroll? Are they all well versed in how to use the software and how the payroll system works? What if your payroll people are sick on an integral payroll day? Do paychecks take the day off too? Your employees hope not. What if the computer "goes down?" Do you have means of manually completing your payroll tasks? We hope.
Conclusion These are just some of the most common mistakes that may occur in the life of a payroll department. Unfortunately, a single miscalculation can mean stiff penalties for your business. Are you willing to take the risk? Have you considered using outsourced payroll services? We hope.
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