Correcting The Most Common Payroll Mistakes

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Correcting The Most Common Payroll Mistakes
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• Mistakes made during the processing of payroll
  can be some of the costliest for a company, and
  when a business struggles to perform its own
  payroll duties due to lack of training, knowledge
  or experience, mistakes will almost certainly
  occur, some of which can result in a loss of
  finances, not to mention, credibility. One way
  straightforward and cost-effective solution to
  this is to outsource payroll to a professional
  company who will deal with everything efficiently
  and ensure that payroll is conducted within the
  confines of tax laws and other IRS requirements.
• Here are a few of the most common payroll
  mistakes along with how to correct them

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• Incorrect classification of workers
• Errors made with the classification of workers
  can be an expensive problem for any business, but
  one quick fix that you can perform if youre
  unsure how to classify them, is to file a Form
  SS-8. In doing so, the IRS are asked the question
  of how to classify employees, instead of you as
  the employer.
• Failure to properly classify a worker can lead to
  you having to pay the following
• Appropriate back wages to an employee
• Penalties
• Interest
• Employers taxes

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• Employee taxes
• Improper tax rates
• When businesses attempt to perform their own
  payroll, they often make the costly mistake of
  applying the wrong tax rates, and as tax rates
  often alter, the mistake can be made frequently.
• When applying tax rates its important to consider
  the following
• Local income tax
• Social security
• Medicare

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• Federal income tax
• State income tax
• Federal unemployment
• State unemployment
• Not paying the correct taxes for each employee
  can result in costly penalties and a company
  having to pay back taxes, which can come as a
  nasty surprise.
• Late payments
• Every time that payroll is late, employees lose
  confidence in their employers and morale can hit
  rock bottom.

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• If you want your employees to continue working to
  their best ability for your company and retain
  those workers who are helping make your business
  function better, then you do need everything you
  can to avoid making late payments.
• Late payments can occur when the following
  happens
• An employee is fired, or they leave the companys
  employ voluntarily
• Payroll is not carried out efficiently
• Incorrect payments
• When underpayments occur, once again, employee
  morale is dampened, and the same can happen if a
  worker is overpaid one month and forced to accept
  a reduced payment the next month to make up for
  the error.

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• An incorrect payment can occur when
• When overtime isnt calculated accurately
• When payroll is left to the last minute and
  rushed through
• Violating labor laws is a serious matter for any
  business owner, and so to avoid making costly
  payroll errors in the future, consider enlisting
  the services of a professional company who will
  ensure that no mistakes are made and that you are
  always in compliance with the law.

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• At Heyer Associates, we proactively assist our
  individual and small business clients in meeting
  their goals. Our key area of focus is ensuring
  that our clients remain compliant with federal
  and state tax laws by providing them with high
  quality accounting and tax services Miami Beach.
  If you are looking for individual tax preparation
  in Miami Gardens, Heyer Associates would be a
  right option.