Top 10 Payroll Mistakes Made Every Day That Cost Businesses Time and Money (1-5)

Our goal is to help make your business as efficient and profitable as possible. We will work with you to help solve your problems, while understanding that you have limited resources and budget. Upon completion, we will present to you a written assessment of your business and recommendations for improving inefficiencies and cost.

1. Missing deadlines

It is imperative that you mark your payroll calendar and report and deposit payroll taxes to federal and state agencies in a timely manner. Late deposits can result in penalties and interest charges.

2. Misclassifying workers

Because of the growing number of temporary employees, consultants, and other independent contractors, it is essential that you properly determine the classification of everyone working for your company so you can determine how to report payroll information for tax purposes.

3. Neglecting to send 1099s 

All independent contractors who receive $600 or more in compensation during a given year are supposed to receive a 1099 form by January 31st of the following year. Often companies neglect to send these out in a timely fashion.

4. Poor record keeping and data entry

Mismatching names and Social Security numbers is so common that the Social Security Administration has even established a special verification phone number. Numerous data entry mistakes, including poor records of employee hours, cost companies millions of dollars annually and can result in government penalties.

5. Not properly handling garnishments, levies, or child support

Employees may owe money by way of a court order to other parties. This means whoever is handling payroll will be responsible for sending the payment to the appropriate recipient.