Every employee looks forward to hearing that it’s time to get paid. We all have bills to pay. but as a small business owner, if you don’t have proper payroll management it will inevitably lead to some problems between you and your employees.
There are quite a few issues that will cause this to happen. Here are some of those issues that you should avoid to keep your business from having to come into conflict with your employees and the government.
Poor Record Keeping
One big issue that can cause a problem for your business is poor record-keeping in general. When keeping a record of your employee statements, everything should be accounted for.
The Fair Labor Standards Act, or FLSA, stipulates that employers must keep at least three years’ worth of pay records, including hours worked, the employee payment rates, payroll dates, and several other things, Some states require more information for longer.
Neglecting to Send Tax Forms
This is especially a big no-no. The IRS requires you as a small business to distribute and catalog your data for tax purposes. Tax evasion is a federal offense that can lead to possible prison time if not handled properly.
Employees need their W-2 forms to file their taxes as well. So sending tax forms should be imperative to your business. If not, you will go out of business far sooner than you might have.
Miscalculating Pay
Calculating pay is a complex task for payroll professionals. Among the simple stuff such as regular pay, overtime, and paid time off or PTO. Then there are deductions for absences, bad work ethic, and others.
It is easy to mess up the payment with all these factors. So if it happens, be sure to fix it promptly. This will help to keep your business from having to deal with a negative reputation
You should also give your employees the option of a pay card so they don’t have to ask the question “What is pay card?”
Missing Payroll Deadlines
Like with miscalculation pay, there are many parts in the process where things can be messed up. There are just too many processes to deal with.
But this can be mitigated by having multiple people look over the work. This lessens the chance of any errors leaving the business.
If not dealt with correctly though, missing payroll deadlines can have serious repercussions for not only the reliability of your business but also your business’s reputation. Try your best to maintain deadline consistency.
Effective Payroll Management
As a small business owner, it is your responsibility to have proper payroll management. You owe it to the government as well as your everyday working employees.
Don’t mess up your employees’ livelihoods because of negligence, you don’t know how much they depend on. So get your payroll working properly today, it’ll save your business and your employees a lot of time.
For other informative articles like this one about how to properly manage your business, be sure to browse the rest of our blog.
Every employee looks forward to hearing that it’s time to get paid. We all have bills to pay. but as a small business owner, if you don’t have proper payroll management it will inevitably lead to some problems between you and your employees.
There are quite a few issues that will cause this to happen. Here are some of those issues that you should avoid to keep your business from having to come into conflict with your employees and the government.
Poor Record Keeping
One big issue that can cause a problem for your business is poor record-keeping in general. When keeping a record of your employee statements, everything should be accounted for.
The Fair Labor Standards Act, or FLSA, stipulates that employers must keep at least three years’ worth of pay records, including hours worked, the employee payment rates, payroll dates, and several other things, Some states require more information for longer.
Neglecting to Send Tax Forms
This is especially a big no-no. The IRS requires you as a small business to distribute and catalog your data for tax purposes. Tax evasion is a federal offense that can lead to possible prison time if not handled properly.
Employees need their W-2 forms to file their taxes as well. So sending tax forms should be imperative to your business. If not, you will go out of business far sooner than you might have.
Miscalculating Pay
Calculating pay is a complex task for payroll professionals. Among the simple stuff such as regular pay, overtime, and paid time off or PTO. Then there are deductions for absences, bad work ethic, and others.
It is easy to mess up the payment with all these factors. So if it happens, be sure to fix it promptly. This will help to keep your business from having to deal with a negative reputation
You should also give your employees the option of a pay card so they don’t have to ask the question “What is pay card?”
Missing Payroll Deadlines
Like with miscalculation pay, there are many parts in the process where things can be messed up. There are just too many processes to deal with.
But this can be mitigated by having multiple people look over the work. This lessens the chance of any errors leaving the business.
If not dealt with correctly though, missing payroll deadlines can have serious repercussions for not only the reliability of your business but also your business’s reputation. Try your best to maintain deadline consistency.
Effective Payroll Management
As a small business owner, it is your responsibility to have proper payroll management. You owe it to the government as well as your everyday working employees.
Don’t mess up your employees’ livelihoods because of negligence, you don’t know how much they depend on. So get your payroll working properly today, it’ll save your business and your employees a lot of time.
For other informative articles like this one about how to properly manage your business, be sure to browse the rest of our blog.
