Payroll is an undoubtedly mundane, tedious and most error-prone activity for an HR. This every month’s phenomenon can turn anytime into a nightmare even with the slightest of error. Legal actions, disgruntled employees, penalties and a lot more can take a toll on the employer and his business.
Because of this many business owners consider payroll outsourcing. However, dealing with multiple or single vendors leaves the payroll processing all the more chaotic. Hence, payroll management software is also used by companies. So, here are a few payroll tips for you to read. Let us start.
- Check if payroll is compliant with IRS–
Prior to filing any document, make sure your payroll documents are in accordance with the compliance standards. So, classify the workers accurately, make sure your business has an employer identification number and you know the policies and laws.
So, maintain an organised payroll system to make sure your business does not have to pay any penalties. If you have doubts keep reading the news and talking to the accountant.
- Review documents and data-
The data entry mistakes are quite common when done manually. So, if you are not using payroll and HR software, you should review the data carefully. There can be misspelt words, wrong or double entry of information. Follow up with the employees for the information you have entered related to them. Ask them to fill form 16 timely.
- Keep payroll tax documents in place–
Every time you run payroll, you become responsible for calculating the taxes rightly. A payroll management software can help you with the calculation as it has the tax calculator. But, if you will enter the wrong data in it, then even that can lend you in trouble. So, make sure you have withheld the amount from employees’ salary as much as you should have. This will also help in payroll tax report that you create at the end of the year.
- Be aware of your payroll tax deadlines-
It is very necessary to be compliant and submit the tax to the state and central government as per the due dates. So, keep a tab on the payroll tax submission deadlines of your state. Exceeding the deadline will make you liable to pay more as a penalty to the government.
- Know your payroll write-offs and the records you should keep-
You should keep a record of all the payroll related data at least for 4 years in order to prevent mistakes and rework. If you would be using HR and payroll software, it will become easy for you to store the record of every employee’s payroll.
If you will follow the aforementioned tips, you will find managing payroll easier. Hope this article helped share it with other HRs to help them.