Did you know that 82 million employees in America get impacted by payroll errors? Avoid mistakes with payroll management. If you want to learn about some common payroll processing myths, we can help.
This guide will go over common things businesses misunderstand about payroll.
Want to learn more? Keep reading.
Don’t Worry About Changes to Tax Rules
This is the wrong mindset to have. State, national, and local policies will change. There’s always an adjustment occurring, and sometimes replacements to tax regulations and rules.
Tax law changes can occur retroactively. You might have to go to the start of the year and make some adjustments.
A payroll provider will have the expertise surrounding compliance and payroll. The provider can protect your business from penalties caused by mistaking government policies.
Salaried Employees Get Exempt From Overtime Regulations
A persistent payroll myth tends to surround the white-collar exemption. For professional, administrative, executive, and outside sales employees to qualify for an exemption, they must get paid on a salary basis.
Yet, they must also meet specific job duties and get paid the minimum salary for exempt employees.
If you misclassify an employee’s exempt status, you could end up dealing with back wages for unpaid time. Sometimes, you’ll need to cover fines and attorney fees.
Small Companies Shouldn’t Outsource Their Payroll
A lot of times, people believe only large companies should outsource their payroll. Yet, small companies with a few employees will benefit from outsourcing their payroll.
Payroll providers have cloud-based platforms, technology, and reporting abilities that a small business won’t. Professionals complete payroll, help with tax filings and direct deposits.
A lot of payroll providers get set up to work in the small business market. Think about whether it makes sense for your business to outsource payroll.
It Costs Too Much to Outsource Payroll
If you run payroll in-house, you will need to hire a specific employee and backup when they are out of the office.
Also, you’ll need payroll software and IT support. Look into security and disaster planning and recovery, as well. The time you spend on these tasks might get better spent on building your company.
It’s Too Overwhelming to Move Payroll
Any changes that involve payroll can feel overwhelming. Payroll providers know this already. That’s why they will dedicate teams to get new clients and ensure a smooth transition.
A reputable provider will give you information on the process and where you can get help. If you need to move payroll, you should focus instead on the long-term benefits.
You’ll have time to focus on your business, boost your compliance, and streamline payroll. Keep your business running smoothly by tracking your employees time better. Check out timetrak.com.
Disregard Common Payroll Processing Myths
We hope this guide on payroll was helpful. Payroll processing doesn’t have to be an overwhelming part of your business.
Work with a provider who’ll help you comply with state and federal regulations.
Are you looking for more business tips? Check out our resources on the blog.