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.

How to Avoid Payroll Mistakes

Retirement Fund 4

Paying employees is a necessity if you want to be in business. However, it can be difficult to perform correctly. Mistakes are common, and it is important for businesses to take their time to ensure that they manage this important aspect of their business properly. With the help of payroll partners and these suggestions, businesses can minimize their mistakes and succeed in this complicated endeavor.

Take Time to Plan
One reason businesses struggle with payroll is because they do not plan. As a result, they might not have the funds to pay their employees or the time to perform the transactions. Sometimes it might be better to delegate the process to payroll partners. This way, the business only has to worry about planning for the funds.

Be Aware of What You Are Paying For
A lot of payroll mistakes occur because businesses do not understand what they actually pay their employees. This does not necessarily mean the actual salary. That is the easy part for payroll partners to figure out. Instead, it is more challenging to determine all of the other benefits that employees are eligible for. The following are some examples:

  • Paid time off
  • Insurance
  • Maternity leave
  • Retirement plans
  • Holidays

 

Understand the Difference Between an Employee and a Contractor
Another important thing to understand when you are performing payroll is the difference between an employee and a contractor. These individuals are paid differently in terms of the law. Businesses have to pay taxes for employees. They do not have to pay taxes for contractors.

Determine What Works Best
Finally, if a business wants to minimize errors, it is best to find a payroll system that works well for them. For many companies, this means that they hire someone else to perform it for them.

It is important to recognize that payroll errors can be subject to fines. Therefore, working with payroll partners can be beneficial. They can help businesses avoid mistakes and better understand the payroll process.