–Timely and accurate payroll and tax filings are often rated the highest headaches for businesses. Robert Borish, CPA and an Irvine tax expert has some tips that can help businesses get the payroll headache under control.
Even small business owners with only a few employees complain about getting payroll out accurately and on time. Employees being late with time cards, questioning expected overtime pay or vacation time are some of the more common issues. Multiply these issues by 50 or more employees working for larger companies and it’s easy to see where the headaches come from. Add on the demand for accurate and timely tax reporting and the jokes about buying stock in an aspirin company are no longer funny.
Businesses have to file and pay income tax, local and state taxes, and payroll taxes, along with paying employees. Even though the Irvine tax expert can help with any tax issues, the topic here is streamlining payroll so that employees and payroll taxes are processed accurately and on time.
Here are the guidelines that help streamline payroll:
- Know the laws
- Keep accurate records
- Establish written payroll procedures
- Automate payroll
- Ask the expert
Know the laws
Laws overseeing payroll and payroll deductions include establishing regular pay periods, record keeping, how hourly and salaried pay is processed, how overtime and commissions are calculated and paid, how vacation time, sick time, or personal time is allocated and managed, and how and when payroll taxes are deducted and paid.
Knowing these laws, and keeping up with any changes, is going to help the payroll process run smoothly and avoid any possible legal issues from disgruntled employees or the government.
Keep accurate records
Keep accurate employee records including the original employment application, the offer letter, rate of pay, benefits, time cards and payroll detail, anything bearing the employee’s signature, and even awards and disciplinary records. Payroll is one of those cases where there is no such thing as too much information.
Establish written payroll procedures
Not only is it important to pay employees on time, it is the law. No one needs be caught between an upset employee and the local labor board. Regular pay periods are required so be sure they are established and that the employees know the payroll cycle.
Labor laws put the responsibility of accurate payroll on the shoulders of the employer, but we all know that problems come up.
Timecards that are not turned in on time, or hours that are not approved can mean that someone may not be paid accurately.
Employees and supervisors need to know the payroll cycle. When are they getting paid? When do their hours have to be submitted and approved? When do pay periods start and end?
What are the consequences if hours are not turned in on time? Employees have to be paid their base pay on time, however a delay in reporting overtime might mean that overtime or commissions might not be included on the regular paycheck.
When everyone, including those responsible for processing payroll, know what the procedures are the chances of problems are reduced.
Automated payroll saves time and stress even for only a few employees. With the payroll service offered by Robert Borish, CPA you will enjoy these time saving benefits:
- Direct deposit available, this means no longer writing payroll checks.
- Payroll tax payments are made electronically, automatically (you will be notified in advance).
- Payroll data can be downloaded into Quickbooks. If you utilize the Borish cloud service for Quickbooks, this will be performed automatically.
Considering the record-keeping requirements, the time involved, and the risk of errors, it is less expensive for small businesses to hire a payroll service, or install accounting software, than it is to try to write and keep track of your payroll.
Ask the expert
Don’t hesitate to talk to a payroll and tax expert. Contact the Irvine tax and payroll professionals for help with setting up a payroll process or troubleshooting an existing system.
Robert Borish CPA, Inc.
6 Venture #120
Irvine, CA 92618
(949) 951-5002 x101
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