Payroll Missteps, Potholes and Pitfalls—Watch Out for These Areas to Avoid Costly Errors
OVERVIEW Properly administering an employee’s compensation is not limited to just calculating the hourly rate times the number of hours worked. That is actually just the beginning of the path to compliance. A path that can be fraught with potholes and pitfalls . From ensuring that the gross wages are correct, through taxation and finally method of payment, every step can be a misstep into the mud and mire of non-compliance. The payroll rules and regulations in today’s world are complex and constantly changing. Gross wages can even change each payroll as employees receive fringe benefits, business expense reimbursements or prizes and rewards. Which to tax and report and which to just report, or which to not bother about can get you right down that payroll pit. If paying employees by check is old hat in your company, then you need to know what the latest regulations are for direct deposits and paycards. Once the employee has the “money in hand” the state may require that they ...