One of the key ways to grow your business comes down to personnel. When you can expand your staff, you’ll be capable of accomplishing so much more, whether you are in retail, skilled trades, or another industry. However, managing employees and thus, a longer payroll, can be complicated, and many growing companies run into mistakes along the way.
If you want to enjoy continued success, have a happy staff, and keep your books in order, here are a few of those payroll-related mistakes to watch out for:
1. Relying too heavily on software
Nowadays, there are many amazing software programs that can manage your payroll for you. However, it’s important to remember that these are still computer programs, and rely on proper input, to do the right calculations. Make sure you set up your program perfectly, and go back to manually check now and then.
2. Misclassifying workers
Employee classification, especially in this age of temporary, part-time, and contract workers, is key for tax purposes. Take your time to properly categorize your workers, and double check that they are receiving the corresponding pay and benefits.
3. Mishandling garnishments and levies
You may have some workers who owe money through court orders, and it is your responsibility, as payroll manager, to withhold the proper amount each paycheck and remit to the right person or institution.
4. Improper data storage and backup
Payroll information should be handled with absolute confidentiality, and this information should never be shared with anyone outside the payroll department. Secondly, it’s critical that you have multiple backups and secure storage for your payroll and tax info, both digital and manual copies, if possible.
Need more tips on managing your small business payroll? Reach out to us at S.J. Wick & Associates today!