I have a teacher friend who says one of the best things about teaching is that every year you get to begin anew. A room full of new faces with new challenges. Every fall is a fresh start.
It’s not that way with your business, though, is it? And, being in the payroll services business, we have seen clients plod along with payroll problems for a long, long time before they make a change – and get that fresh start.
Payroll problems can’t be slipped under the rug …
We like to think of ourselves here at The Payroll Department as being able to give small business owners that fresh start. We have a history of taking on problems and cleaning them up, so every year starts with a nice clean slate – or, at least on its way to resolution! We know that just letting payroll and payroll tax problems slide is NEVER the way to handle them.
Payroll problems come up in a variety of ways:
- Employee-based: For instance, if an employee is improperly classified at the start of their employment, this could be an issue that dogs your payroll for a long, long time, even bridging years. And if an IRS notice of audit is where the problem is uncovered, it could spell recordkeeping problems, as well as additional taxes, fines, and penalties. Proper classification and handling of employee forms is required by the Department of Labor and can be audited at any time by the government agency.
- Court-based: Employers are required to comply with court orders having to do with things like garnishments, child support payments, liens and the like. You might feel bad for the employee, but by law you must follow the court’s demand, and you must do it in the manner they dictate. There are specific processes and reporting that must be followed. Employers cannot simply sweep notices under the rug and avoid liability. It doesn’t work that way.
- Tax-based: Every small business owner knows that payroll taxes – the payment of them and the reporting of them – is not something that can be taken lightly. It’s not enough that you file the returns and eventually pay them. No, they must be reported and paid in compliance with the time tables set by the IRS. Late payments, as well as late reporting is grounds for fines and penalties. As an employer, you must be certain that payments for taxes are made on time, and paid in full. If your business has unpaid payroll taxes, your employees will eventually find out in the reporting they receive from Social Security – and that’s not good for you, either.
- Process-based: Payroll is one of those touchy areas in a business. Nothing riles up employees more than errors on their paycheck. Start having errors and you will see employees seek employment elsewhere, especially if it is an on-going problem. Payroll errors often signal to employees that there is a problem in the business, whether that is true or not. When their paychecks have “corrections” pay period after pay period, they lose confidence. End of year W-2 Forms or 1099 Forms that are late or incorrect are also a problem, for employees and for you with the authorities. That’s why The Payroll Department has accuracy standards for their role as a payroll provider.
If you are unhappy with your payroll provider, make a change
There really is no reason to continue with the status quo if it doesn’t meet your standards. Eliminate the headache and misery and start fresh. You might have some problems that need to be resolved, but there is no better time than right now to plan to take care of them. You can switch payroll services at any time, but the end of the year makes the transition simplest.
The New Year is coming fast, but you have time to make plans to transition to The Payroll Department on January 1. We can help you make the transition quickly and relatively painlessly. We will make sure you have all the records you need on file for employees. We will review your records and set up your payroll so that employees are paid accurately, payroll tax reports and payments are made on time and you are on your way to a wonderful year with your payroll.
Contact us today at 317-852-2568 to find out what it will take to get a fresh start!
-Elaine of The Payroll Department Blog Team