As a business owner, payroll preparation is probably not your most enjoyable task because it’s easy to make costly errors. If you want to avoid making mistakes as you’re doing payroll, these simple tips may be able to help.
• Put a Pay Policy in Writing. One of the easiest ways to avoid payroll preparation mistakes is to devise a written pay policy and make it available to your employees. This document should include what factors go into determining a pay raise, what parameters pay is based on, and how your company deals with payroll errors.
• Prepare the Correct Forms. When tax season approaches, it’s essential that you fill out and send out the correct forms to your employees on a local, state, and federal level. Remember, sending forms out late or failing to file necessary forms can result in penalties and late fees.
• Keep Up on Regulations. The payroll preparation process is subject to many state and federal laws that can affect your business not only during tax season, but throughout the duration of the entire year. You should pay particular attention to regulations relating to child support withholding, paying state unemployment taxes, and withholding income tax at the correct rate.
• Let Us Handle Your Payroll Preparation Tasks. Although all of these tips can help you avoid making payroll preparation mistakes, the best way to avoid errors is to turn over your payroll operations to us at Cathy E. Parker, E.A. Bookkeeping & Tax Service. We’ll make sure that your payroll documents are always correct and that your business consistently remains up-to-date on state and federal regulations.