If you do the payroll manually for your company, you know that there are a lot of pitfalls you may encounter. Some of these are relatively minor and easy to fix, but many mistakes can have a negative financial impact and should definitely be avoided.
Setting up payroll can get very complicated, even in the simplest employee situations. Think about all of the situations you will encounter:
- Setting up deductions
- Withholding Federal and state income taxes, which can be tricky for employees who live in different states
- Calculating other withholding like Social Security and unemployment
- Managing benefits like retirement savings and health insurance
- Adjusting accruals for vacation and sick leave
- Running unscheduled payments such as bonuses or commission checks
- Making sure expense reimbursements are exempt from withholding
- Paying and filing monthly, quarterly or annual payroll taxes correctly and on time
- Adjusting pay periods around holidays
- Making both direct deposit and paper check payments
- Paying contractors and sending 1099 forms
As you can see, there is a lot of information to navigate when you pay your employees. Both Federal and state governments also periodically update tax tables that may have an effect on your accounting. If you do not keep abreast of the changes, you may be penalized later.
You can ease your administrative burden and have peace of mind when you let a qualified provider host your payroll. Net Plus Consulting offers professional service and an easy-to-navigate system that allows you to quickly and easily pay your employees. Taxes and forms can be easily managed from the same interface, with helpful reminders so you will always be on time. You can also run handy reports to see historical data and view your settings. Contact us today to learn more about how we can help you.
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