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
Installing Shutters, Blinds & Screens – Preferred Glass & Windows
When it comes to making sure your house makes the right impression and has the “homely” feel, your shutters, blinds, and screens can actually have much more of an impact than you may realize. If you are looking for quality window treatments that are affordable and...
Bugs: How to Kill’em! Green Thumb Garden Center
Step on them! That works. This may be a little difficult, however, if the bugs are on your prize-winning rose, or thirty feet up in your pine tree.Another viable option is to have predator bugs working for you. A couple of good-guy bugs that you could use in your...
Santa Clarita Glass Door Installation and Repair – Valencia Custom Shower Doors
At Valencia Custom Shower Doors, we have experience in all aspects of the glass industry and can help you design and install glass doors throughout your home or office. As a family-owned, local business in Valencia, we are proud to bring our customers...
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