Payroll Processing Risks

Business News Daily recently released an article about some of the risks of outsourcing your payroll. Though the article might sound like it’s against outsourcing your payroll, that’s not the case. Indeed, outsourcing payroll processing is a wise decision, one that can keep your company from getting overwhelmed when it already has so much on its plate. The truth is, as the article explains, that you just have to be careful about whom you trust with your payroll.  

Some of the risks addressed by the article include:

l  Working with a “fly by night” company that takes your money and info and disappears

l  Not monitoring the actions taken by the company; remember, these actions are done “on your behalf.” It’s just as if you’d done them yourself

l  Working with a payroll company that doesn’t respect deadlines/timeliness

Fortunately, all of these risks and many others can easily be avoided by doing a little research and working only with the most reputable payroll processing companies.

Related articles

• 3 Things a Small Business Can Do to Manage Payroll Like a Big Business (business2community.com)

A Guide to Classifying Workers

One of the most important parts of payroll processing is properly classifying workers. Unfortunately, this can also be one of the trickiest parts. When you know a few simple rules, however, it’s really not all that difficult.

To begin with, it’s important to understand who actually counts as an “employee” for payroll purposes. An employee is someone who continually works with the employer in the workplace he or she has provided and who could be terminated if the employer decides to do so. All workers who meet these criteria must have taxes withheld.   

Other possible classifications include independent contractors and statutory employees. The classification given to each worker really determines how he or she should be treated for payroll purposes.

Figuring out which category each and every person you work with falls into can be difficult though. For that reason, many busy business owners hire an accounting firm to manage their payroll for them. That’s definitely an option worth considering if the whole process has you feeling overwhelmed.

Related articles

• With No Fanfare, Congress Re-Introduces the Payroll Fraud Prevention Act of 2014 to Crack Down on Independent Contractor Misclassification (independentcontractorcompliance.com)