Payroll Challenges: Are You Tackling These with Success?
As a business owner, questions related to payroll are sure to move to the forefront from time to time. While some owners opt to handle this task in-house, others understand the benefits of hiring a professional.
Those who manage their own payroll must be ready to tackle the following challenges:
- Processing payroll in a timely manner. As you can imagine, this one task can steal a lot of time from other areas of your business. From keeping accurate records to calculating pay to issuing paychecks, there is a lot that goes into this.
What steps can you take to speed up the payroll process without increasing the risk of a mistake?
- Staying compliant with the IRS. You don't have to look any further than the IRS' "Payroll Professionals Tax Center" to understand the complexities of this subject matter.
Making things even more complex is the fact that IRS regulations can and will change on a regular basis. How will you stay current on the requirements and regulations set forth by the IRS?
Failure to comply with the IRS can lead to a variety of consequences, including costly penalties.
- Answering employee questions. The more employees you have the more questions you will receive regarding payroll and related matters. Some of the most common questions include:
- How do I change my payment method?
- Can you explain the many deductions on my paycheck?
- How will my overtime hours be paid?
- I think there is an error on my paycheck. How can I deal with this?
In addition to the above, an employee may have the right to take legal action if a payroll error results in a disadvantage, such as being paid less than what is owed over an extended period of time.
With an in-house payroll system, it is your responsibility to tackle each and every challenge that comes your way.
When you rely on the services of a payroll company, you can effectively handover most (if not all) of the responsibility to a third party. This allows you to save time, reduce stress, and ensure accuracy.