Common Errors Made in Payrolling That Employers of Record Can Eliminate
Posted on June 17th, 2016 Read time: 2 minutes
As a small business owner, running payroll in-house may seem like a logical and time-saving move. However, considering the tax regulations, legal considerations, and lengthy amount of time needed to complete the process, tackling payroll yourself may not be in your best interest.
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Common Mistakes
When carrying out an essential business function that’s not your area of expertise, mistakes happen.
You may not understand overtime and other labor laws in your state. Miscalculations and litigation from employees wrongly classified as exempt can be costly. Perhaps you misclassify employees as independent contractors. You’ll face steep tax bills and penalties down the road. You might withhold incorrect federal, state, or local taxes for your employees or be late filing or paying them. This results in interest charges and penalty payments.
Perhaps you don’t understand pre-tax and post-tax earnings and deductions. It’s important you properly handle garnishments, levies, child support, or other court orders regarding payment to third parties. You might forget to send 1099s to independent contractors earning $600 or more in compensation during a calendar year. If you fail to do so by January 31 of the following year, you’ll face tax and legal issues. Perhaps you mismatch names and social security numbers or keep inaccurate records of employees’ hours. You may face government penalties down the road. You might forget to save payroll records. Time sheets, canceled checks, W-4s and other forms need to be held four to six years, depending on state law.
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IES Solution
You don’t have time to learn all payroll laws and stay updated with pertinent changes. Because you’re busy during the day performing core functions, you may be handling payroll after-hours rather than spending time with your family or friends.
Working with the trained payroll professionals at IES as your Employer of Record gives you access to tax and compliance resources that help eliminate common errors. We take on your workers’ compensation, benefits, time and attendance, ACA compliance requirements and more to save you time and reduce your risk of expensive payroll errors. We customize our payroll solutions to your needs, providing you peace of mind.
Avoid common mistakes that occur when processing payroll in-house. Contact Innovative Employee Solutions for all your outsourcing needs today!
Related Articles
Posted on June 17th, 2016 Read time: 2 minutes
As a small business owner, running payroll in-house may seem like a logical and time-saving move. However, considering the tax regulations, legal considerations, and lengthy amount of time needed to complete the process, tackling payroll yourself may not be in your best interest.
-
Common Mistakes
When carrying out an essential business function that’s not your area of expertise, mistakes happen.
You may not understand overtime and other labor laws in your state. Miscalculations and litigation from employees wrongly classified as exempt can be costly. Perhaps you misclassify employees as independent contractors. You’ll face steep tax bills and penalties down the road. You might withhold incorrect federal, state, or local taxes for your employees or be late filing or paying them. This results in interest charges and penalty payments.
Perhaps you don’t understand pre-tax and post-tax earnings and deductions. It’s important you properly handle garnishments, levies, child support, or other court orders regarding payment to third parties. You might forget to send 1099s to independent contractors earning $600 or more in compensation during a calendar year. If you fail to do so by January 31 of the following year, you’ll face tax and legal issues. Perhaps you mismatch names and social security numbers or keep inaccurate records of employees’ hours. You may face government penalties down the road. You might forget to save payroll records. Time sheets, canceled checks, W-4s and other forms need to be held four to six years, depending on state law.
-
IES Solution
You don’t have time to learn all payroll laws and stay updated with pertinent changes. Because you’re busy during the day performing core functions, you may be handling payroll after-hours rather than spending time with your family or friends.
Working with the trained payroll professionals at IES as your Employer of Record gives you access to tax and compliance resources that help eliminate common errors. We take on your workers’ compensation, benefits, time and attendance, ACA compliance requirements and more to save you time and reduce your risk of expensive payroll errors. We customize our payroll solutions to your needs, providing you peace of mind.
Avoid common mistakes that occur when processing payroll in-house. Contact Innovative Employee Solutions for all your outsourcing needs today!
