Handling payroll is a part of running just about any type of business, and payroll is probably a big expense for your company. For your company's sake and for the sake of your employees, it's important to make sure that you're handling payroll properly. However, it's easy to make mistakes. Some of the common mistakes that many businesses make when handling payroll have been listed here.
1. Not Calculating Hours Appropriately
For one thing, it is important to make sure that you are calculating the hours that your employees work properly. You don't want to accidentally pay your employees for too many hours, nor do you want to pay your employees less than what they have earned. In addition to making sure that you are calculating hours the right way, it's also important to make sure that you calculate overtime hours properly based off of your pay periods. Failing to pay employees properly for overtime is against the law and can get your business in a lot of trouble, and you also don't want to shortchange your employees. On the other hand, though, you don't want to pay your employees more than what they have earned, either, as it can cost your business a lot of money.
2. Failing to Handle Garnishments Correctly
If any of your employees' paychecks are supposed to be garnished due to money that might be owed in child support, back taxes, student loans, or anything else, it's important to make sure that you handle this properly. It's easy to make mistakes with this type of thing, but focusing on tracking and handling garnishments appropriately will help.
3. Not Handling Taxes the Right Way
One big part of handling payroll is making sure that you handle taxes properly. It's important to make sure that you are withholding the proper amount in taxes for each of your employees based off of the number of dependents that they have, the amount that they make per hour, and the number of hours that they work. To avoid problems with the IRS and to prevent your employees from having tax-related problems, it is very important to be careful about how you handle taxes so that you don't make any mistakes.
If you think that you might be making any of these common mistakes when handling your company payroll, or if you have made other payroll-related mistakes in the past, you could be wondering what you can do to prevent these mistakes in the future. For one thing, using the right accounting software program can make a big difference. Additionally, either hiring an experienced person to work in-house or outsourcing your payroll to a good accountant could also be something to look into so that you can make sure that your payroll is handled appropriately.
Look into a company that offers Deltek administration services for more information.