Common Payrolling Mistakes

Most small to medium sized businesses have bookkeepers that handle various administrative needs. Whether or not you use a payrolling software or database, lack of experience can add hundreds if not thousands of dollars to your company’s bottom line. Allowing professionals to handle the payroll component of your HR Admin can reduce errors and decrease costs. Many businesses have elected to outsource their payroll to PEO companies like Talent HR (THR) Solutions. We have certified public accountants (CPA’s) who will carefully ensure that proper taxes are deducted and HR specialists who will ensure that your business is labor compliant with the state of Hawaii.

5 Common Payroll Mistakes that Talent HR Solutions would be able to eliminate:

1. Forgetting to Record Paper Checks

   When small to medium sized business owners are pressed for time, they can run into the mistake of writing a manual check for employees and forget to record that check into their payroll processing system. This simple error can cause confusion and leave an imbalance in your books and tax deposits.

2. Setting up Payroll Incorrectly

   Keep the IRS off your trail by correctly registering your business, setting up federal, state and local tax withholdings, deducting required labor burdens, and classifying your employees correctly. Professionals at THR Solutions will give you the confidence in knowing that you are up to date with state laws across the board and reduce the anxiety of whether or not you are compliant.

3. Failing to Update Your State Unemployment Insurance (SUI) Rate

   At some point, you may receive a new SUI rate from your state agency. If you forget to add the new rate to your payroll system, your filings will be incorrect.

4. Submitting Deposits Late or Incorrectly

   As a business owner, you need to know when and how tax funds from employees and contributed tax funds are deposited. Having it done correctly can eliminate your uncertainty of what forms you’re required to use or if you have the option to deposit funds electronically.

5. Neglecting to Run Payroll on Time

   Payroll administration is a key component of Talent HR Solutions. This function includes, but is not limited to the following:

   • Support for hourly, salary, commissioned tipped and piece-work payment based employees
   • A variety of payment methods, including payroll check, direct deposit and, in some cases, a debit card arrangement
   • Payroll input methods via phone, fax and the Internet
   • Filing local, state and federal government paperwork (W2s, W4s, FICA, etc)
   • Tax Reporting and Compliance
   • Certified Payroll, Job Costing and Departmental Billing

According to the small business association, (SBA), small business owners spend about 20%-40% of their time doing administrative work. On top of that, if they choose to do payrolling in-house, and don’t consider all of the payroll processing's risks, the slightest mistake could cost the trust of the employees. Even more painful, it could cost thousands of dollars in IRS penalties, and hours upon hours of time correcting them.

Contact THRS for a free quote to take your company to the next level!