Owning a business comes with a lot of responsibilities. Not only do you need to make sure you have enough employees on hand to cover your demands, but you also need to make sure you pay them on time and correctly. Processing payroll can be quite confusing and complex. There are a lot of different forms that have to be filed and different statuses that have to be updated. To help you better understand some of the different issues surrounding payroll, check out the information below.
Incorrectly entering pay rates and hours.
While you try to keep all of your employees straight, it's easy to see how an incorrect wage could be entered into someone's payroll account. By not entering a wage correctly, it could throw off your entire payroll amount. If someone is supposed to get paid $25 per hour and you have them at $22, you could end up with a significant difference in your payroll amount, especially if that employee worked overtime. One slip of the finger can throw your whole system off. Because of this, you need to make sure all numbers are accurate.
Not having the number of exemptions correct.
Filing status and the number of exemptions claimed play a major role in how much the employee is going to have taken out of them for taxes. If you have an employee marked as 0 exemptions when they should have 4, it will end up making a major difference in how much they get in their check each pay period. Not only will they end up losing more money to taxes, but you are going to end up paying more in to taxes on your end. It messes the entire system up.
Failing to pay the payroll taxes on time.
As a business owner, you have to make sure that you file your payroll tax payments on time. Not paying your taxes on time could end up resulting in fines being added to your amount owed. This is only going to put you further behind when it comes time to file at the end of the year. However, many business owners aren't familiar with all of the different forms to file and when. This causes things to often slip through the cracks.
Instead of worrying about what needs to be filed and when, you can turn to a payroll service like Risley Annette CPA to handle everything for you.Share