It should be easy, work and get paid. Having a seamless payroll system is much more complicated than that. One small component gets overlooked and suddenly tax laws are broken and you’re in trouble. Howard Employee Services has the solution! These are the most common payroll mistakes and how to avoid them.
Missed Deadlines
Keep a payroll calendar, report and deposit payroll taxes to federal and state agencies on time to avoid penalties and interest fees.
The Fix – With an automated payroll system or PEO, you’ll never miss a payment again. Pay schedules will be set ahead of time, thus avoiding late payment penalties.
Poor Recordkeeping
Believe it or not, mismatched names and social security numbers cost companies millions of dollars each year!
The Fix – Double check entries, or hire a PEO.
Missing 1099’s
1099’s are required by law to be sent by January 31st of each year, and for each employee; even independent contractors who receive $600 or more in compensation during a given year.
The Fix – Automated payroll system or PEO to the rescue.
Improper Deduction of Garnishments/Child Support/Levies
When employees owe money due to a court order, the responsibility is on payroll to manage the deductions. When an error occurs it is not easily rectified.
The Fix – A PEO such as Howard Employee Services can easily enter this information once it’s provided.
OT Calculation
Overtime calculation has become a hot topic, therefore very specific guidelines have been set in place. There is no room for employer miscalculation.
The Fix – All hours are recorded and calculated so that nothing is overlooked or missed.
No Backup
What happens in a small business when your payroll manager (or owner) goes on vacation? Do you wait for paychecks?
The Fix – With Howard Employee Services you’re always covered no matter who is available.
If you think you’re vulnerable to any of the above mentioned mistakes, contact Howard Employee Services today! We can help you find a solution!