Blog

Posts Tagged small business payroll

Retirement Benefits Come from Employment and Payroll

In today’s world where so many workers have lost their pensions, there is one employer who has remained steadfast in meeting their pension commitments – the United States government. As of an August, 2016 article in the USNews.com, there was still one beneficiary receiving benefits from a Civil War pensioner. (more…)

Posted in: IRS and Tax forms, Payroll, Payroll Processing

Leave a Comment (0) →

When Are You Paying Your Employees?

You might think that setting up a regular payroll would be easy. You know, put in names and start paying the employees. But stop right there, you’re going to have to first determine when you’re going to pay them, and I’m not talking about what day of the week. Of course, it’s much more complex than that. You have to consider the hold back. What’s that? Well, it’s certainly something you have to consider. (more…)

Posted in: Payroll, Payroll Processing, Rules, Regulations and Laws

Leave a Comment (0) →

Honest, It Was Just a Mistake

It was just a mistake. Those are awful words – and impactful words – especially when it comes to financial aspects of a small business. And when it applies to payroll, payroll taxes and the IRS, those words could mean the end of a small business. (more…)

Posted in: IRS and Tax forms, Operating a Small Business, Payroll, Payroll Processing

Leave a Comment (0) →

Legislation Can Change Everything … At Any Time

You never know when new legislation might be passed, turning your small business’s life upside down.  Just when you think you have things figured out and your business is on the right track, the government can decide that you need to change the way you operate.  Small business owners in New York are currently facing a scenario in which proposed legislation threatens to change the way they will be allowed to pay their employees. (more…)

Posted in: IRS and Tax forms, Payroll, Rules, Regulations and Laws

Leave a Comment (0) →

What Should I Consider If I Want to Make an Employee Salaried?

When a small business owner decides to take an employee to salaried status, the key to the transition is that it should be legal, as well as a win/win for both the organization and the employee. Salaried employment is becoming more and more of a hot topic considering there are significant changes being made in the workforce. (more…)

Posted in: HR Rules, Regulations and Laws, Human Resources, Operating a Small Business, Staffing

Leave a Comment (0) →

Fraud: Under-reporting Payroll to Reduce Worker’s Compensation Premiums

Worker’s compensation fraud is “the fastest growing segment of insurance fraud,” according to the National Insurance Crime Bureau. One way, small business owners commit insurance fraud is by under-reporting payroll to avoid paying worker’s compensation premiums to their insurance carrier. If your small business is under-reporting payroll to save on premiums, you need to know that you’re playing with fire. If you’re caught, you could face financial penalties and jail time.

Be sure you are not committing fraud with your reporting.

Last year, Sung Hyun Kim and Caroline Choi, CEOs of sewing companies Meriko Inc. and SF Apparel Inc. were arrested, along with their accountant Jae Kim, on suspicion of workers’ compensation insurance fraud. Beginning as early as 2006, they’re accused of underreporting $78 million to more than a half-dozen insurance carriers. The trio conspired to hide payroll to avoid paying workers’ compensation insurance premiums. They fabricated payroll records and paid employees under the table through an undisclosed bank account. Sung Hyun Kim faces up to 28 years in prison, Choi faces more than 15 years behind bars, and Jae Kim could get a 22-year prison term, according to the Los Angeles County District Attorney’s Office.

Creative Under-reporting

Employers can use a variety of “creative” methods to under-report payroll. Some common under-reporting methods used include:

  • Misclassifying employees into “safer” jobs.
  • Paying employees under the table.
  • Hiring employees as independent contractors.
  • Paying bonuses off the books.
  • Paying employees on a non-wage basis, such as a reduction in rent or free meals.
  • Setting up dummy companies to “hide” employees.
  • Understating payroll to insurance companies.
  • Fabricating phony payroll

Perhaps, business owners don’t realize the impact their dishonesty can have on their company, employees and other companies. Employees who are hurt on the job may not have workers’ compensation coverage to pay their medical bills. Or, in cases where there’s no worker’s compensation insurance, your small business may be considered “self insured,” which means as an employer, you must pay the employee’s medical bills and lost wages. If the injury is severe and the costs are high, you may be forced to go out of business.

The Real Cost of Payroll Fraud

Additionally, when you cheat the insurance companies out of the premiums they’re owed, this causes the rates to go up for everyone else. Businesses pass these premium increases on to their customers in the form of higher prices for goods and services. Therefore, fraud hurts everyone. So don’t do it! It’s not worth the risk.

Payroll fraud can be a costly issue for employers. By outsourcing your payroll services to a reputable external payroll provider, like The Payroll Department, you can help ensure your payroll information is secure and reviewed regularly for errors and other discrepancies. Contact Teresa Ray of The Payroll Department at (317) 852-2568 to learn how outsourcing your payroll can protect your company from fraud and give you peace of mind.

-Ariane of The Payroll Department blog team

Posted in: Payroll, Payroll Processing, Rules, Regulations and Laws

Leave a Comment (0) →

5 of the Biggest Payroll Mistakes that Small Business Owners Make

Have you ever read something and found yourself shaking your head in agreement through the entire piece? Well, when I saw a slide presentation from Accounting Today about the payroll errors commonly made by small business owners, I had to agree. I personally have been given these reasons for why some of my clients make the decision to outsource their payroll to The Payroll Department! These are costly mistakes when the IRS or other governmental agency gets involved – I know lots of people who will agree with that. Don’t be caught out! (more…)

Posted in: Churches and Non-Profit Employers, IRS and Tax forms, Operating a Small Business, Payroll, Payroll Processing, Rules, Regulations and Laws

Leave a Comment (0) →

4 Benefits of Outsourcing for Your Small Business

As an entrepreneur, are you trying to do it all when it comes to running your small business? While you may think you’re the only one who can do the work efficiently, that’s not really the case. If you want your small business to grow, you need to learn how to let go and start delegating tasks that really aren’t your forte. However, some entrepreneurs don’t want to hire full- or part-time employees to take on these responsibilities. That’s when outsourcing makes a lot of sense. (more…)

Posted in: Churches and Non-Profit Employers, Operating a Small Business, Payroll, Payroll Processing

Leave a Comment (0) →

Employers Need to Be Aware of Differences in Federal and State Labor Laws

Employers cannot rely solely on the guidelines in the Fair Labor Standards Act. So, if you think you know that Act inside and out and you are safe … think again. Why? Because each state also has its own set of rules, regulations and laws by which you must abide if you are a resident of their state. And that can get you into trouble. (more…)

Posted in: Operating a Small Business, Payroll, Payroll Processing, Rules, Regulations and Laws

Leave a Comment (0) →

Minimum Wage – more than meets the eye

Minimum wage is a hot topic in the media these days, but we aren’t going to debate increasing the minimum wage to $15. The amount may be under debate, but the one thing that doesn’t change is the fact that employers have laws to follow regarding minimum wage. (more…)

Posted in: Operating a Small Business, Payroll, Payroll Processing, Rules, Regulations and Laws

Leave a Comment (0) →
Page 2 of 8 12345...»