Avoid Common Mistakes With Payroll Processing Services
Running a small business often means trying to manage as many functions as possible. Entrepreneurs manning the helm of startups sometimes assume that the only way to get their business operations off the ground is to straddle as many tasks and responsibilities as possible. Unfortunately, this can often cause more inconvenience and more money than outsourcing the function to a seasoned and experienced provider.
One common function often absorbed internally that can lend to future problems is payroll. Small to mid-sized business owners assume outsourcing these responsibilities to a payroll processing services firm will be too expensive. However, a seasoned and reputable payroll services firm can actually help save money, save time, avoid inconvenience, reduce the employee turn over rate and, well, you get the point.
Professional Payroll Processing Services Can Yield Significant Benefits To Your Business
What is perhaps the biggest benefit that comes with outsourcing your payroll processing services to a professional provider? You’ll get the assistance you’ll need to avoid several common and costly payroll mistakes. It’s no secret that the corporate payroll process in any organization can prove complicated and ever changing. It’s common for business owners to unknowingly make a wide range of mistakes. Some of these mistakes are small and easily fixed. However, some may go unnoticed until tax season and cause major stress and inconvenience.
Outsourcing Your Payroll Processing Services Can Help You Avoid Five Common Payment Mistakes:
Mistake #1: Incorrectly Setting Up Payroll
Sometimes the mistake happens right at the starting line with the payroll information being incorrectly added to whatever system is in place. This mistake can affect a range of items such as tax withholdings, how an employee is classified and even social security.
Mistake #2: Forgetting To Log Checks
Are you in the habit of writing manual checks to your employees? While the practice itself is fine, many employers often forget to log the payment into their system so it stays updated.
Mistake #3: Late/Incorrect Deposits
Taking tax funds from both your employees and business is a complicated process. There’s a system in place that mandates how and when you need to take those withdrawn funds and deposit them appropriately based on your corporate tax liabilities. Not knowing the process can put you in noncompliance.
Mistake #4: Not Updating Your SUI Rate
Most business will, at some point, receive a State Unemployment Insurance (SUI) Rate. Employers failing to put this new rate into their system could face noncompliance and fines.
Mistake #5: Running Payroll Late
Managing all your corporate functions yourself often means not having the time to manage any of them appropriately. Overtasked business owners often find themselves racing through the payroll process. The result? Mistakes are made with calculation. You may inadvertently over/underpay your staff, or even completely forget to run payroll entirely.
Have you found yourself perpetrating any of these top five mistakes? The Payroll Company can help. We offer customized payroll processing services designed for companies of every size and scope. Partnering with us means we do all your payroll heavy lifting so you can focus on your core business responsibilities. Contact us today to request additional information.