Mistakes made when running payroll are typically due to an incomprehension of the many (and frequently changing) rules and regulations surrounding payroll and its associated taxes and compliance.
While using an outsourced payroll provider can prevent these mistakes from ever occurring, should you wish to tackle payroll in-house, here are 4 errors to watch out for, that could end up costing you dearly:
- Wasting time fixing mistakes
It takes a lot of time to handle every aspect of payroll due to its complex nature, especially if you have a large number of employees, and often, even when you don’t. Once you start factoring in errors, that can amount to a lot of wasted time – time your in-house payroll team don’t have. Not only that, but continued errors are likely to draw unwanted attention from the IRS.
Hire a payroll provider and make better use of your time, while not looking over your shoulder waiting for an IRS inspection.
- Having to pay back taxes
When you hire a payroll provider, there’s no such thing as back taxes as they’ll make sure you don’t have to pay them, but without their help, you may be forced to pay back taxes if you miscalculate an employees pay. You’ll also need to ensure that all employees are classified correctly, and that all company and employee information is up-to-date and tax numbers match payroll records.
Avoid this error by working with a payroll provider, and eliminate the risk of paying back taxes altogether.
- Making mistakes with compliance
Failing to comply with all payroll and employment laws results in immediate penalties, and while these are typically monetary, they may also include interest on back taxes, civil and criminal sanctions, and even jail time. Costly and with the potential to be devastating for your business, outsource your payroll requirements and never make another compliance mistake again.
- Losing the trust of your employees
Even if you miscalculate an employees compensation just one time, this could be enough to force them to take out a loan to pay bills, or risk penalties for not paying on time. At the end of the day, no employee wants to receive their paycheck late, and most don’t deserve that, either. Consequently, employees who aren’t paid in full and on time, are likely to perceive themselves as not being worthy, and certainly, of not being valued. And what happens when an employee doesn’t feel valued? They don’t work as hard, and in some instances, they may even look for another job that will pay them on time.
Not paying employees the correct amount, or failing to issue the paycheck on time each month, will almost certainly result in problems for you, if not immediately, then certainly further down the line, especially if you’re a repeat offender. Avoiding this is simple though, by signing up for the services of a payroll provider, who will make sure every employee gets what they’re entitled to, without fail.
Partnering with a payroll provider helps make life easier for you, and gives your employees the confidence to continue being your loyal worker. With pricing plans that can be customized to suit your needs, outsourcing your payroll requirements might just be more affordable than you think, so why not give it a try?