by Jannette Lajom, Tax Specialist Supervisor
One of the biggest problems businesses face with processing payroll is ensuring accuracy and compliance. Payroll processing involves numerous complex tasks, including calculating employee wages, taxes, deductions, and benefits. Here are some common challenges to be aware of that can also be used as a health-check to make sure your organization is processing payroll accurately, within compliance, and why partnering with Southland Data Processing can offer the assurance and peace of mind needed to operate within the appropriate guidelines.
Complex Tax Regulations: Organizations must navigate federal, state and local tax regulations, which can change frequently. Staying compliant with these regulations and calculating taxes accurately is a significant challenge. If it’s been a while since your business has conducted a tax review, we encourage you to take action now and make this a regularly-scheduled review.
Employee Classification: Misclassifying employees as contractors or vice versa can lead to legal issues and tax liabilities. Determining the correct classification is often challenging. SDP’s HR division offers complimentary consultations and HR solutions to advise clients on ensuring the proper employee classifications. If your organization has not had an HR audit recently, now may be a good time to schedule and include a review of employee classifications.
Overtime & Leave Management: Calculating overtime, paid time off, and other types of leave can be intricate, particularly for organizations with varying work schedules or shift differentials. Using the latest time keeping technologies can help mitigate these risks. Our payroll professionals can help determine the best time keeping solution for your business. Contact us anytime and let’s talk.
Record Keeping: Maintaining accurate and organized payroll records is crucial for audits and compliance. Organizations need to store data securely and have it readily accessible. If it’s been a while since your organization reviewed its record-keeping standards, enlist the assistance of an HR professional who specializes in record keeping compliance. Contact SDP’s HR division for a complimentary consultation to get started.
Software, Technology & Data Security: Many organizations struggle with outdated payroll systems or software that can be error-prone and inefficient. Payroll data contains sensitive personal financial information. Protecting this data from breaches and cyberattacks is essential. If your organization’s software and technology are outdated, this could make sensitive payroll data vulnerable. Working with a professional payroll service like SDP transitions your organization to a user-friendly solution that helps maintain the appropriate compliance, security and protection.
Multi-State Payroll: For organizations with employees in multiple states, managing payroll across different tax jurisdictions and compliance regulations can be highly complex. As your payroll partner of choice, SDP offers payroll for all 50 United States and has the expertise to offer guidance to maintain the appropriate compliance.
Reporting & Compliance Deadlines: Meeting reporting requirements and deadlines for tax filings, wage statements, and other regulatory obligations can be a significant source of stress for organizations. As your payroll partner, we’ll help you ensure your obligations are met.
Human Errors: Even with advanced technologies, human errors in data entry or calculations can still occur. Working with experienced payroll professionals helps to reduce risk, exposure and costly errors.
To overcome these challenges, organizations turn to Southland Data Processing to help with compliance and streamline the payroll process. Regular training for staff and staying informed about regulatory changes are part of our services every client can access. We help manage these challenges and more! Let’s talk anytime. If you have questions, contact us. We answer the phone during traditional business hours and strive to make processing payroll and tax payments a breeze.
For more information about Southland Data Processing, call us today at 909.946.2032. Or, click here and Let’s Talk!
Our payroll professionals assist our clients with payroll, workforce management, benefits administration, and human resources needs. To get started or learn more about these solutions, simply contact us today.
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*Southland Data Processing, Inc. (“SDP”) is not a law firm. This article is intended for informational purposes only and should not be relied upon in reaching a conclusion in a particular area of law. Applicability of the legal principles discussed may differ substantially in individual situations. Receipt of this or any other SDP materials does not create an attorney-client relationship. SDP is not responsible for any inadvertent errors that may occur in the publishing process.