Payroll Tips for Small Business

While nearly 80 percent of small businesses handle their payroll internally, roughly one-third of small businesses have reported errors in their payroll. Among the small businesses that report issues, the most common issues include late disbursement of checks and direct deposit, withholding an incorrect amount of taxes, faulty record keeping, and underpayment or overpayment of employees. With so many businesses concerned with handling their own payroll, it may be time to consider outsourcing.

Typically, small businesses spend about three weeks a year managing their company’s payroll taxes, either by the business owner or by staff. Not only are companies spending a large amount of company time doing their payroll, they may spend even more time if a mistake occurs and the IRS forces the business to seek a financial or legal solution. Laws and regulations are constantly changing and it can be difficult for small businesses to keep up with the changes, so here are several tips that can help businesses with some of their payroll issues.

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