Jun 22 2008
Common Payroll Mistakes and Errors
While payroll is an essential part of any business, administering this delicate and time consuming task often takes employers away from income – producing activities.
What’s more, as government regulations continue to grow, costly fines and penalties are on the rise as well. According to IRS statistics, approximately 33% of employers make payroll errors costing them billions of dollars annually in penalties. With more tax law changes on the horizon, there’s even a greater risk for payroll errors.
Let’s take a look at the 12 of the most common payroll mistakes and errors:
1. Human error
2. Misclassifying workers
3. Not properly handling garnishments, levies, or child support
4. Miscalculating overtime pay
5. Neglecting to send 1099s
6. Miscalculating state unemployment tax
7. Not having adequate backup
8. Missing tax deposit and filing deadlines
9. Not saving payroll records
10. Ignoring taxable items
11. Assuming too much responsibility to the software program
12. Wrong information on the W-2 form
The services of an Employee Leasing Company help small businesses avoid payroll pitfalls, saving them from hundreds, or even thousands of dollars in penalties, as well as valuable time and resources.
When you’re ready to obtain multiple quotes from the only company that has service and price guarantees, call Employee Leasing Quotes! We can be reached by calling 1-888-582-8388.
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