Error-free Payroll Keeps Your Business Running Smoothly

Still debating using a payroll service? Consider this!

The decision to use a payroll service isn’t one to make lightly. Make sure you work with a business that views you as a partner- someone committed to helping you be successful and who values the relationship you’ve created together. At APS, we do just that. If you are still debating whether or not to use a payroll service, here is something to consider: Payroll mistakes can happen. Especially when you are a busy business person trying to juggle every facet of your company…some things slip through the cracks. And unfortunately, many payroll mistakes can be costly and detrimental to your business.

Here are 10 of the most common payroll mistakes, as cited by AllBusiness.com…Mistakes you won’t experience when using APS!

1. Missed deadlines. It is imperative that you mark your payroll calendar to report and deposit payroll taxes to federal, state, and local 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 required 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.
6. Miscalculating overtime pay. There are guidelines that must be followed when determining overtime pay, and miscalculations can be costly. Litigation has been increasing in recent years, claiming that employees who were treated as "exempt" employees and therefore not entitled to overtime were misclassified.
7. Leaving too much responsibility to the software program. There are several programs available for doing payroll. However, the old garbage-in, garbage-out theory still applies. Too many people neglect to enter all of the data or assume that a program can perform calculations without all of the necessary information.
8. Not saving payroll records. While states and specific agencies vary, typically records, including time sheets, cancelled checks, and W-4 forms, need to be held for anywhere from four to six years.
9. Not maintaining confidentiality. Payroll information should not be disclosed to anyone outside of the payroll department or the senior management team. It is important that such confidentiality be maintained and that payroll is handled in a secure environment.
10. Not having adequate backup. Should the individual responsible for payroll be away or sick, all tax jurisdictions still need to receive payments on time, as do employees waiting for paychecks. There needs to be more than one person capable of both understanding and handling the payroll functions. In addition, if the computer is "down" for whatever reason, you need to have a manual backup system for handling all payroll functions.

At APS we are focused on providing an effortless, error-free payroll experience.

When you choose us as your payroll partner, we are committed to the success of your business. APS is just that—your business partners. Locally owned and operated, Accurate Professional Service is the cornerstone of our payroll program. We treat your business as if it were ours—and that means a high level of careful service that ensures your payroll is done efficiently and accurately from month to month. For your payroll needs, choose APS. We are passionate about creating the innovative solutions that achieve our clients' goals.

Contact us today to find out more about the payroll solutions we can offer your company.