Many small and medium-sized businesses pay IRS penalties due to payroll mistakes. Although it’s ideal to avoid these errors whenever possible, the reality is, payroll mistakes happen and the consequences can be expensive.
In this blog, we’ll look at some of the most common payroll errors, as well as the best way to avoid those mistakes by using HR software designed to make payroll for bookkeepers easier. What are some of the most common payroll mistakes?
Payroll for bookkeepers: The best way to avoid costly mistakes So what’s the easiest way to prevent payroll mistakes? Payroll and HR software that makes payroll for bookkeepers easy, convenient, and error-free. This type of software double checks your work to help you avoid data entry errors and accidental miscalculations. Additionally, many types of payroll and HR software programs will automate certain things, like employee pay rates, to cut back on manual entry time and reduce opportunities for mistakes. Or, they can auto-adjust pay rates by job function, auto-calculate tax rates by store location, and much much more. Payroll and HR software improves the process of completing payroll for bookkeepers by cutting back the total time it takes to get the work done, reducing errors, and automating complex tasks. Read a similar article about how to run small business payroll here at this page.
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The Research and Development (R&D) Tax Credit is a great way for American companies to take advantage of federal and state tax savings to grow their business. Organizations across a variety of industries can benefit from this tax credit if they claim it. Unfortunately, many businesses aren’t aware that they can!
Here’s a quick overview of the R&D Tax Credit, who can claim it, and how to do so. What is the R&D Tax Credit? The R&D Tax Credit was created to encourage businesses in America to pursue innovation and to increase technical jobs in the U.S. This tax credit is intended for businesses of all sizes, not just massive corporations with research laboratories. It’s also for companies of all industries that complete a broad variety of activities that qualify them for the tax credit. Who can claim the R&D Tax Credit? Now that you know the answer to, “Who can claim the R&D Tax Credit?” you might be wondering if your business qualifies. Essentially, any tax paying business that develops, designs, or improves products, processes, formulas or software can claim the tax credit. Of course, that answer is very broad, so try answering these three simple questions to determine whether your company can claim the R&D Tax Credit:
If you answered “yes” to any of the questions listed above, your company can claim the R&D Tax Credit! How can qualifying companies claim the R&D Tax Credit? To claim the tax credit, companies must be able to show adequate evidence that they engage in the research and development activities listed above. That means they must keep accurate and detailed records of their activities to create a tax credit claim. Examples of the types of records you’ll need to claim the R&D Tax Credit include:
If your company can produce the above documents and present evidence that you pursue research and development in the U.S., you’re well on your way to claiming a cash credit and reducing future federal and state tax liabilities. Read a similar article about sexual harassment training requirements here at this page. Onboarding a new employee involves providing easy access to all of your company's systems. That includes internal servers, integrated apps, and more. Providing access ensures that your new hire can start their work and find their groove within the company.
But what happens when their tenure at your business is over? User Deprovisioning Explained Account provisioning refers to the creation of user accounts and providing access to those all-important systems. Deprovisioning is the complete opposite. It's the act of deleting accounts and ensuring that employees can no longer access critical data. Deprovisioning is a necessary process that protects your company from potential theft and data breaches. Even if an employee leaves on good terms, having open access to a company's critical internal systems is risky. Deprovisioning essentially wipes the slate clean and removes all previous employee privileges. User Deprovisioning Explained: Critical Steps to Protect Your Company There are many steps to take when deprovisioning an employee. The job's complexity can vary based on the length of the employee's tenure and what type of internal systems you use. Here are a few basics to cover. Close User Accounts One of the first things to do is to close user accounts. Generally, onboarding involves creating accounts for third-party work platforms. You pay for those services, so closing individual accounts is paramount. Doing so also ensures that previous employees can no longer jump into projects or view sensitive material. Revoke Access Server access is another critical touchpoint to address. Whether your employee worked in the office or remotely, they likely had access to internal servers for storage and communication. Revoke that access immediately to prevent potential security risks. Disable Permissions Finally, don't forget to remove permissions! You may have different security access levels based on position. Some employees might have access to more sensitive systems than others. Revoke them all and make sure that employees can't access any part of your company's internal or third-party systems. Automated Deprovisioning Deprovisioning can be difficult if you don't have steps in place to cover all contingencies. Luckily, there are automated systems to do the job for you. Access management platforms let you disable accounts from one dashboard, simplifying the process and providing much-needed peace of mind. Read a similar blog about employee benefits here at this page. Let’s face it. The post-Covid world of work looks vastly different from the landscapes most of us experienced in 2019. Covid-19 smashed into our workplaces like an asteroid, leaving massive changes in its wake. And it wasn’t just the work environment that was affected read more
Hiring a new employee is about more than just welcoming them to the team. There are many logistics to take care of before they start working and receiving regular paychecks.
What are the steps for a new hire? Keep reading to learn more about some of the forms you need to take care of for new employees. Form W-4 This form is sometimes called the "Employee's Withholding Certificate." Its purpose is to determine how much your new hire wants to withhold for taxes during each pay period. Every new hire has to complete the W-4 before they get a paycheck. Employees can change the W-4 at any point. As an employer, it's your job to keep track of changes and make withholding adjustments accordingly. Form I-9 Also known as the "Employment Eligibility Verification form," I-9 is a form that you must keep in your employee's records. Your new hire should fill it out and provide supporting documentation of their identity and work eligibility. While you don't have to send it out, it's essential to look at the documents to ensure adequacy. You can use the E-Verify system to check work eligibility, but the I-9 is mostly for immigration officers and audits. Application form What are the steps for a new hire joining your team? Before anything else comes the job application. Contrary to popular belief, the application isn't a throwaway document. It holds crucial, verifiable information about the employee, such as work history and education. Keep the application in your records, as it will protect you as an employer should they make fraudulent claims. State Forms and Registration Requirements In addition to federal-level forms, you might have some state regulations to follow. All states are different, so make sure to check with local laws for guidance. Typically, you'll have to fill out forms for the taxing agency if you live in a state that has an income tax. Forms for unemployment tax and employer registration might come up as well. Staying Above Board Familiarize yourself with state and federal laws to ensure that you're compliant with regulations. Send out forms to the appropriate organizations, such as the IRS. It's also a good idea to keep copies in case of workplace audits. Having that documentation ready ensures that any issues will resolve quickly. Read a similar article about open enrollment software here at this page. |
AuthorEmily Clarke writes about employee management, benefits and payroll service. Archives
December 2021
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