At Proctor & Assocs., we know that your small business is important to you, and we want to help you do what’s best for it. One of the many ways in which we can help small businesses is by providing top-notch payroll services that will give you peace of mind that everything is being calculated correctly and that everyone is getting paid on time. Over the years, our team has seen many small business payroll mistakes, and we want to help you avoid making similar ones, so we have put together this article to cover some of the most common mistakes that you should watch out for.
- Improperly Categorized Workers- One mistake that many people make when it comes to small business payroll is not categorizing various workers properly. In general, you need to categorize the people working for your company as either contractors or employees, and further divide your employees into exempt and non-exempt categories. These designations can be tricky, so it’s a good idea to consult experts like us to help you make sure you have it right.
- Overtime Miscalculations- Another area of small business payroll where many people make mistakes is in calculating overtime wages. In general, non-exempt employees should get time and a half for every hour they work in a week beyond the standard 40, but some states also have additional overtime requirements, so make sure to check out the regulations for your area.
- Late Paychecks- A third small business payroll mistake, and one that can do serious harm to your business and your workers, is getting paychecks out late. Your employees need to get paid on time in order to feed their families and cover key expenses, so make sure to stay on top of things.