Let’s set the scene:
It’s nearing the end of the week. You’re feverishly trying to finish your payroll. With a cup of cold coffee and a phone ringing off the hook. Did you get Tom’s overtime right? With everything going on at work today, you’re REALLY hoping you don’t accidentally fudge the numbers.
You’re not alone. And, according to DailyPay “The IRS estimates that over 40 percent of small businesses in the United States pay penalties of over $800 per year … the result of late or incorrect filing and payments.”
So, what are the most common mistakes?
- Errors in reporting details which lead to paying excess taxes
- Improper bills and reimbursement claims
- Overpayment due to bills not being verified
- Filing with the wrong PAN or permanent account number for employees
- Miscalculations (hello, working with numbers on low sleep!)
- Missing IRS payments or being late with your schedule
- Dealing with late payment penalties from the IRS due to the above mistake
Either monthly or 26 times a year, you’ll find yourself depositing withheld taxes from employee’s wages to the IRS. Depending on the amount of reported tax liability for your business (more or less than $50,000 per previous 4 quarters of the tax season) you could be required to make semi-weekly payments, or deposits every two weeks. If you’re late on this payment, it could be anywhere from a 2%-10% penalty.
OH! And the IRS charges interest on those fees. Yikes.
Collecting the information and processing payroll can be hard enough–especially if you’re not a numbers person. But making those payments on time (or worse yet, dealing with late payroll tax deposits, the Electronic Federal Tax Payment System, PINs, EINs, and Form 941s…)
We know just reading all of that was probably exhausting for you. And honestly, as a business owner, your primary concern is running a profitable business and executing your vision, or coming up with new products or services to grow your legacy.
For that reason, we say, leave the payroll to us! Whether you’d like us to train you on how to run your own payroll, or pass the task off completely for a HUGE breath of fresh air, we’re here for you.
Let’s get started on clearing your plate of “Payroll Pains!”