15760 Ventura Blvd, Suite 610 Encino, CA 91436
FREE CONSULTATION818-436-2775
15760 Ventura Blvd, Suite 610 Encino, CA 91436
FREE CONSULTATION818-436-2775
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Personal, Affordable Payroll Services, Bookkeeping, and Tax Processing for Small Business throughout Los Angeles County.

3 Payroll Mistakes to Avoid

Several of today’s businesses utilize payroll partners to help them process payroll and manage their employee’s money. However, many of these companies still play a role in the payroll process. When you are paying employees, it is important to be aware of certain mistakes that will cause you trouble in the future. In particular, the following are three common mistakes to avoid.

1 – Forgetting to Pay State Payroll Taxes

It is easy to forget to pay state payroll taxes as you go about the daily tasks involved with running a business. Unfortunately, forgetting to pay these taxes can lead to fines. The amount you are required to pay in taxes is based on the W4s you received from each employee. If you are working with payroll partners, they will most likely help you with this task so that you pay the right amount of taxes on time.

2 – Not Verifying Employee Eligibility

As part of the hiring process, companies need to verify that employees are eligible to work in the United States. Federal law requires this. Too often, businesses overlook this simple step during the hiring process. They automatically assume that the individual is eligible for work. Instead of assuming, make sure that each employee you hire fills out an I9 form. Then, you can use the E-verify system to validate the information with the federal database. In doing so, you will receive peace of mind and protection from unwanted problems.

3 –Misclassifying Employees

Another problem many companies make with employees is that they misclassify them. It is common for businesses to consider workers independent contractors instead of actual employees. When this happens, they do not have to pay taxes. However, if the workers do not meet the qualifications for an independent contractor, then the company risks getting into a lot of trouble with the IRS.

Whenever you are not sure about something involving payroll, it is best to ask payroll partners you trust for help. They can provide you with the help you need to ensure that you do not make these three common mistakes and many others.