The Payroll Blog
News, tips, and advice for small business owners
With the growth of online payroll services, it is easier than ever for small businesses to avoid mistakes. Even though you may have the best technology in place, it doesn’t mean you are completely out of the woods. Regardless of your company size or industry, there are steps you must take to avoid mistakes and ensure that your payroll is 100 percent accurate.
Here are three commonly overlooked payroll mistakes that have led to trouble for many companies in the past:
The IRS has many rules in place to determine if a worker is a 1099 contractor or W-2 employee. Additionally, this will impact how the person is paid.
For more information and advice, check out this page on the IRS website entitled "Independent Contractor (Self-Employed) or Employee?"
If you inaccurately classify a worker and the IRS finds out, you can be rest assured that it will lead to many headaches.
Some payroll mistakes are easy to point out, while others seem to lurk in the shadows and sneak up on you at the worst time. Make sure you never fall prey to one of the three mistakes detailed above.