Common Payroll Mistakes Is it time to outsource?
The IRS and California’s Employment Development Department’s payroll tax laws are complex. Thus, dealing with payroll taxes on your own may eventually cost you. If you plan to continue handling payroll taxes yourself, you should be aware of mistakes and how to prevent them. The following are a few major ones:
Misclassification of employees: If you are paying individuals as subcontractors, make sure you are doing so correctly and can prove the classification is correct.
Miscalculations: Employers are responsible for proper payment of Medicare, Social Security, and income tax. Make sure you withhold the correct amount and understand how much you, as an employer, need to pay. If your employees work overtime, you must comprehend the complexities of California overtime laws and carefully follow them.
Rushing through payroll processing: You could under or overpay employees and be fined for mistakes.
Incomplete paychecks: You need to provide employees a record of all deductions and how you calculated their net pay.
Depositing late: Follow the correct IRS schedule guidelines for your business, which is either semi-weekly or monthly. Failure to deposit on time can mean penalties.
Failing to properly keep records: Keep accurate records for at least the most recent three years. If you fail to, you do not want to be audited.
Employees working out-of-state: You will likely be required to register in the employees’ home states.
If you have questions concerning payroll taxes, or wish to determine whether you should consider a payroll service, contact us.
For more information concerning Professional Tax Services, call 661-259-1967. Through the EZ2 Thrive program, Professional Tax Services provides unlimited complimentary advice on income and payroll taxes. For information on how you can receive advice at no cost, visit www.scvprotaxservices.com.
ADVERTISE WITH US
Co-Parenting And Social Media – The Reape-Rickett Law Firm
Social media can be a great way to connect and build community, but if you are in a divorce or custody matter, it’s important to be mindful of what you post online about the other parent and your case. In family law matters, your comments and communication will be...
The Importance of Having A CPA Help When Selling Your Business – Stern, Kory, Sreden & Morgan
Selling a business is a significant financial and emotional decision that requires careful planning and execution. One of the most valuable professionals you can have on your team during this process is a Certified Public Accountant (CPA). First, a CPA can help you...
Did You Personally Guarantee Your Business EIDL loan? What You Need to Know – Ray J. Bulaon
During the economic upheaval caused by the COVID-19 pandemic, the U.S. Small Business Administration (SBA) expanded its Economic Injury Disaster Loan (EIDL) program to provide critical financial relief to small businesses. While these loans helped countless businesses...
ABOUT THE MAGAZINE
Santa Clarita Magazine has set a high standard for excellence in advertising for over 36 years. A family owned and operated business, Santa Clarita Magazine has grown with the Santa Clarita Valley since 1990 and become the #1 place to advertise locally.
FOLLOW US
SANTA CLARITA MAGAZINE
PO Box 801570
Valencia Ca 91380
For Advertising information
Call or Text: 1 (661) 294-4444