Did you know that a quarter of all workers have had paycheck errors?
In business ownership, managing payroll is one of the more mundane yet necessary tasks that you have to perform. Though it might not seem like a difficult thing to do, it can be time-consuming and take away from other aspects of running your business. This is a common problem in the trucking industry where there are a lot of things to do. The solution is this, https://www.rollbyadp.com/industries/transportation-trucking a payroll system specifically designed for a small trucking business.
When you’re doing it all on your own and trying to rush through payroll, that’s you’ll end up making costly mistakes. Those mistakes hurt your employees and make doing taxes a nightmare.
Today, we’re going to tell you how to avoid those common mistakes so that you’re always accurate and on time with payroll. Keep reading, and your business finances will run like a well-oiled machine.
Read the Fair Labor Standards Act
As a small business owner, it’s important to understand the ins and outs of every component of running your company. One of the things that pertains directly to your employees and payroll is the Fair Labor Standards Act, which provides benefits and protections (OT pay, minimum wage, etc.).
If you’ve got different types of employees on your payroll, then you need to properly classify them. For example, regular employees have different rights than independent contractors. If you misclassify your employees, they can miss out on benefits and wages that they should have.
Pay Close Attention to Calculations
There’s a lot you need to consider when doing your own payroll. With overtime, commissions, deductions, and paid time off, you need to make sure you’re calculating everything correctly for each individual employee.
Miscalculating pay is an easy way to alienate your workers. It all starts with time-tracking and double-checking every employee’s timesheet with your own payment policies. The fewer mistakes you make, the higher employee happiness will be.
Stick To a Schedule
The last thing you want to do is miss a payment, but there are numerous steps to payroll processing. For an entrepreneur that manages every aspect of their own business, it’s easy to lose track of your schedule.
Your employees are the most important component of your company’s success, so you need to pay them on time. Whatever you need to do to stick to a firm schedule and not miss payments – do it.
Remember Tax Forms
Payroll can get hectic at the end of a fiscal year when you’re filing your business taxes. While you’re doing that, you need to provide every employee with a W-2 tax form and every independent contractor with a 1099 form so they can file their income taxes.
You have to get the right forms to the right people with enough time for them to get their taxes filed. If you fail to do this, it’s going to spell trouble for your employees and the company alike.
If this all sounds like too much, one of the best things you can do to avoid mistakes is to outsource payroll. Payroll outsourcing won’t cost much, and it’ll take all of these tasks off your hands so you can focus on running your business as efficiently as possible.
Managing Payroll in the Future
Smart management is all about knowing when you’re in over your head. Managing payroll isn’t easy, so if you don’t have the time to do it, outsourcing is a great option. For a small fee, a payroll professional will make sure you never make any payroll mistakes again.
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