What Makes Payroll Processing So Complex?

1
What Makes Payroll Processing So Complex?
2

• As arguably one of the trickiest administrative
  functions of any organization, the tiniest and
  seemingly inconsequential of mistakes can take
  the whole payroll process down, and even force
  employees to work overtime to make the necessary
  corrections. When payroll mistakes go completely
  unnoticed on the other hand, you can enter into
  the dangerous territory of non-compliance, and
  even incur fines and costly legal action.
• Still not convinced? Check out the payroll
  challenges listed below and if your business is
  struggling with any of them, it might be worth
  consulting with a third-party payroll
  professional

3

• Classifying employees
• Calculating payroll accurately is only possible
  when employees are correctly placed into
  categories, known as types, and these are based
  upon the organizational needs of your business.
  Full-time, freelancers, part-time, temporary,
  contractors, interns and several more, types of
  workers may be entitled to different benefits and
  compensation according to regional and national
  laws surrounding payroll. When an employee isnt
  classified correctly, not only could you end up
  paying them more or less than theyre eligible
  for, but you could also face several tax
  compliancy issues.

4

• Calculating leave and attendance
• Managing leave and attendance manually will
  always prove difficult for companies, especially
  for those employing more than ten workers. Not
  only can this task be time consuming, but getting
  it exactly right can be even harder. With
  advances in technology and software solutions,
  third-party payroll professionals can help small
  businesses get their payroll right every month,
  and save them a lot of stress, time and money.

5

• Keeping abreast of payroll laws
• Continually evolving, payroll laws are hard to
  stay on top of, and without a dedicated team who
  are always abreast of changes at a national or
  local level, it can be easy to get it wrong and
  end up not being compliant. Third-party payroll
  providers on the other hand, make it their job to
  watch out for new laws and understand them in
  their entirety passing their knowledge down to
  the businesses they work with, and helping them
  to be compliant at all times.

6

• Tax deductions and net calculation
• This process can become longwinded and complex
  for any small business still using manual
  systems, and without the help of an outsourced
  payroll provider. W-4 forms have to be collected
  from new hires to ascertain how much tax should
  be withheld from their salary, a list of
  voluntary deductions for each employee has to be
  compiled and reimbursements must be accounted
  for, too.

7

• Management of payroll records
• Holding important information, payroll records
  may need to be documented for a certain period,
  and they include how many hours each employee has
  worked, their rate of pay, taxes and other
  deductions, benefits, pay period, date of payment
  and so on. Passing an audit is made much more
  difficult if these documents arent ready and
  dont contain all the information required by
  law, and a third-party payroll provider can
  ensure that theyre always up-to-date, and are
  always safely stored using digital methods.

8

• Many small businesses are reluctant to pay an
  outside party to perform their payroll tasks for
  them, and this is mainly through a combination of
  naivete and a desire to save money. However, the
  reality is often that without their help, costly
  mistakes are made, laws are broken and there are
  disgruntled employees aplenty! To stay on top of
  your payroll responsibilities, outsource them to
  a professional, reputable provider.

9

• Apollo Payroll is one of the premier small
  business payroll services companies in Miami and
  Coral Gables. Apollo Payroll is dedicated to
  delivering expert advice, responsive service, and
  highly accurate payroll processing and reporting
  to ensure the success and growth of the business
  that we serve. Our services include comprehensive
  payroll services in Homestead and other cities in
  Miami-Dade County, employee background check and
  group health insurance in Miami Coral Gables