Payroll is much more than just paying the employees the hours worked or their salary. It comprises health insurance, social security, and taxes, among other factors affecting remuneration. Effective payroll management requires ensuring the employees receive accurate payments on time and in compliance with the applicable laws.
Even though this may seem easy at first glance, without the right resources, tools, and skills, the task can quickly become a minefield of errors, costing your company and employees time and money. When you outsource payroll services to a reputable CPA firm like Nidhi Jain CPA, you can avoid making the following common payroll mistakes.
#1 Our Experts Don’t Miscalculate the Payroll or Pay the Incorrect Amount
Providing all employees with accurate and timely payroll is fundamental for maintaining a good professional relationship. Ensuring the correct amount is paid each time involves carefully looking through countless timesheets to ensure each one of them is proper.
Miscalculations of regular pay, bonuses, and overtime can lead to underpaid workers. Even if they’re provided with less pay than they deserved by accident, it could give a highly unprofessional impression, leading to their motivation being negatively impacted.
Overpayment due to minor data entry mistakes is an equally destructive business model. Not to mention the severe damage it can cause to the company’s financial health if it goes undetected for long.
#2 We Ensure Payroll Taxes Aren’t Disregarded
Paying taxes is one of the most critical tasks when it comes to businesses. The government and relevant authorities require businesses of all sizes to pay employment taxes, federal income taxes, and a variety of local and state taxes.
Missing any of the tax payments could cause trouble with the International Revenue Service. Ignoring payroll taxes can cause problems with the Department of Labor and the IRS. Since most of the taxes are collected on a pay-as-you-go basis, missing even a single payment can result in serious fines.
#3 You’ll Never Experience Improper Employee Classification Issues with Us
Different classifications entitle employees to different benefits and tax payments. A company worker may be allowed specific benefits with overtime wages collection. This means they can get their payroll taxes deducted through their paychecks, and the employer will then be responsible for paying the applicable state and federal tax entities.
Independent contractors, for instance, are obliged to pay and report their payroll taxes and aren’t subject to overtime or minimum wage laws. They don’t receive benefits like official employees. If you accidentally classify an employee as a contractor, you’ll be required to pay back taxes for their work, along with interest and penalties. You may also own back salary or wages to the worker.
#4 We Help Ensure the Payroll Payments Are Never late or Skipped
Any business can be quite unpredictable, with product launches or campaigns being late. However, you must ensure the employees’ wages are never late. When payroll doesn’t arrive at the exact predetermined time, it can lead to the workers losing trust and their sense of stability. Even if you expect the payroll to be late a couple of times a year, always notify the employees in advance with a credible explanation to help them be prepared.
The only thing worse than a late payment is when wages don’t come at all. It can lead to employees resigning rapidly. We help make sure all the employees get accurate remuneration on payday. Missed paydays can demotivate the team, creating an unfavorable precedent.
Ensure Everyone Gets the Right Payroll at the Right Time Every Time with Nidhi Jain CPA’s Payroll Services
Even if you have a dedicated payroll generating team, the department is bound to get swapped, eventually. Instead of overburdening them by asking them to keep track of the number of hours worked, contracts, payroll taxes, salaries, off days, and other overwhelming factors, alleviate their workload by outsourcing payroll services to experts at Nidhi Jain CPA.
Outsourcing payroll management allows access to highly competent professionals who can easily identify errors, eliminating the need for hiring in-house professionals and increasing the overall operational costs. Our professional team double-checks each factor and helps businesses tackle issues concerning compliance, taxation, and finances to ensure nothing affects their bottom line.
Clients across the Bay Area, San Francisco, USA, trust us for a wide range of services, including payroll services in Bay Area personal and business accounting and bookkeeping, tax filing, tax consultation, and tax planning in Bay Area. Connect with experienced professionals at Nidhi Jain CPA via call or email to streamline payroll services by top-notch payroll managers who will improve efficiency and authenticity in your payroll while helping you avoid potential penalties.