In accounting and business, the term payroll refers to the calculation of how much each employee is to be paid. As you can imagine, making sure each employee is paid properly and on time is critical for any business. Our team at America’s Best Payroll has extensive experience in providing these services, and you can count on us to make sure your employees are paid what they are owed so your business doesn’t get into any legal trouble. This article covers common payroll mistakes and how to avoid them.
- Misclassifying Employees – One mistake many business owners make when it comes to payroll is placing employees in the wrong payroll category, or in multiple categories. For example, many business owners start an employee as a contractor with a 1099 form, only to hire them full time under a W-2 but fail to make that transition on paper. Our team can help you make sure every employee is properly classified for payroll purposes.
- Using Incorrect Tax Rates – Another mistake people often make when doing their own payroll is using incorrect tax rates when calculating withholdings, etc. This kind of mistake will make you fall short on tax payments in the spring, so it’s important to avoid it at all costs. Our team will make sure your business taxes are calculated accurately.
- Miscalculating Pay – A third common payroll mistake is miscalculating an employee’s pay. Obviously, this will greatly damage employee satisfaction, and it can land you in serious legal trouble if this mistake is not corrected right away. Our team can help you make sure your employees are paid properly every time.