5 Tips for Improving Payroll Processing in 2020
Filed under: Payroll
Payroll can be a tedious and confusing part of running a business. It can be tempting to run payroll based on a “good enough” basis, but accuracy is critical because you’re dealing with worker wages, taxes, and classification. Get any of the details wrong, and you may find yourself owing money in back taxes, wages, or even penalties.
Mark Rowley, Owner
RandR Payroll Services
To keep things smooth sailing this year, consider implementing any of the following tips (as applicable) to improve your payroll process:
- Automate Payroll – Manual payroll has the potential to introduce errors. It’s easy to mis-key a decimal place, or fail to stay current with the latest relevant tax updates. These errors can cause future headaches that need to be corrected. Setting up an automatic payroll system eliminates most of these concerns.
- Ensure Correct Worker Classifications – Any workers must be classified as employees or independent contractors. Getting this right is vitally important because it changes how you calculate and collect taxes. You can review the IRS website to determine how to classify a worker correctly.
- Verify Time and Attendance Tracking – Failure to accurately track can lead to time theft. You can prevent this problem with a good software program to manage time card accuracy that integrates with your payroll systems.
- Stay Current on Payroll Changes – The laws and regulations governing payroll taxes change fairly often, so be sure to regularly check in to receive any updates that apply to your business. You can find payroll change information from relevant newsletters, state and local government websites, industry blogs, etc. If you use automatic payroll software, any changes to standardized tax rates are usually updated by the provider. One benefit of using payroll processing services is that the company will ensure that you are always up-to-date with industry changes.
- Do Audits of Your Payroll System – Accuracy is key to the success of any payroll system. You’ll want to make sure employee wages are correct, as well as any deductions and tax withholdings. It’s also important to check that deductions and taxes are being paid on time, and to the right place.
Looking for payroll support in 2020? Call us here at R&R Payroll & Bookkeeping Services for a no-obligation consultation: (951) 296-0412.
