1. Misclassifying Employees: Incorrectly labeling employees as independent contractors to avoid payroll taxes and benefits. This can lead to legal penalties.
2. Miscalculating Overtime: Failing to properly calculate overtime pay (time and a half) for non-exempt employees who work over 40 hours in a work week. This violates the Fair Labor Standards Act.
3. Missing Tax Deadlines & Filing Errors: Submitting your payroll taxes late or incorrectly filling out tax forms can lead to heavy penalties, interest, and possible audits.
4. Improperly Calculating Deductions: It is important to not make errors in withholding taxes, health insurance premiums, or retirement contributions. This can lead to incorrect net pay for an employee.
5. Improper Record Keeping: Failing to maintain required payroll records – such as tax filings and timecards – for the required minimum of three years.

Our payroll department can help answer any questions regarding these issues as well as processing your payroll for you!