Does your business handle its own payroll? We commend you for undertaking this all-important task on your own! But at the same time, we also want to share some of the common payroll mistakes many businesses make when they're going it alone in this post.
We'll also highlight how outsourcing your payroll can mean great things for the overall success of your business, so be sure to read all the way to the end of this post.
Let’s explore some of the most common payroll mistakes we see small businesses making without further adieu.
When your employees receive an inaccurate paycheck, this is incredibly frustrating for them (particularly if it's less than what they're owed). But these mistakes are also incredibly challenging for businesses to fix—they take up a lot of time and effort to fix.
There are several types of miscalculations you may make doing your own payroll.
These include:
Keeping track of all of your receipts can be tough. That being said, it's also incredibly important!
You need clear and accurate financial records for your business, and keeping track of your receipts is part of this. Unfortunately, disorganized or missing receipts and records is a common payroll mistake we see with many businesses.
Do you want to take your business from shoebox record-keeping to success? Here are some strategies to help you do just that.
We also see many businesses incorrectly paying overtime or missing hours on paychecks. These payroll mistakes can take years to correct, and they also come with certain task implications that can be tricky.
Some of the most common scenarios when missing hours is more likely include:
Finally, let's talk about misclassifying employees and what this common payroll mistake entails.
If your employees aren't properly classified, this leads to a whole host of issues, including over or underpaying them.
For example, did you know that according to the Fair Labor Standards Act (FLSA), all of your employees must get overtime pay for hours worked above 40 hours per week unless they are classified as exempt?
Fixing that mistake can result in a major headache for both you and your employees.
What if we told you there was one step you could take today to make these common payroll mistakes a thing of the past? It's true! All it takes is contacting the team at Two Roads to learn more about our payroll services.
Outsourcing your payroll services comes with a variety of benefits. Not only will this help you avoid the errors we've covered in this post, but it also saves you a lot of time. With all of that time you'll save you can redirect your efforts and focus on other areas of your business that need it most.
(Read about this and other benefits of outsourcing your bookkeeping in this post)
Not to mention, you'll save yourself a lot of stress and headaches when you aren't overwhelmed with payroll paperwork and other challenges that come with doing your own payroll.
To recap: Please, don’t do your own payroll! The costs associated with making these payroll mistakes are not worth it. Trust us – we have stories.
Click here to learn more about our bookkeeping and payroll services and what they can do for you.