Avoiding payroll mistakes is ideal, but business owners should focus on correcting payroll errors when they occur. Establishing a software-driven payroll process allows businesses to simplify the way they pay and report wages. You’ll be able to pay your workers correctly while filing the required government forms. Utilizing a semi-automated payroll software for these tasks can decrease your chances of allowing a payroll oversight.
But what happens when you do make a payroll error? Advanced Micro Solutions offers small businesses an easy-to-use, affordable program that can help correct mistakes. Whether you need help paying workers or need a method to avoid future tax errors, AMS can also help streamline your management routine.
What are the Most Common Payroll Mistakes?
Promptly correcting payroll errors will help you to avoid the Internal Revenue Service issuing fines or auditing your business. Some of the most common payroll mistakes to avoid are:
Missing Deadlines – Mark your calendars so that you report all your federal and state payroll taxes on time. The IRS may issue penalties and interest charges if you are negligent.
Misclassifying Workers – In recent years, a growing number of workers have struck out on their own to become consultants or independent contractors. Properly classifying your 1099 workers and your employees is essential. The classifications dictate how you report and deposit the company’s payroll taxes.
Poor Recordkeeping – Assigning the wrong Social Security Number to a worker can cost your company a tremendous amount of money. It can also create unnecessary headaches. Using a program to verify these data entries can assist you with correcting payroll errors and avoiding similar problems in the future.
Forgetting to Send Forms – Failing to send 1099-NEC forms by January 31 to the applicable independent contractors is avoidable. If you manually complete these forms, you are more likely to miss the cut-off date and encounter complications with the IRS.
Although each of these mistakes are common, making them is not inevitable. What links the errors is that small businesses can make them if they do not establish an electronic payroll system as soon as possible.
Preventing Mistakes with AMS
Your small business can easily side-step payroll complications and inconveniences. Investing in AMS’ base W-2 and 1099 Forms Filer with the accounting and payroll software can help you simplify your payroll process. The payroll module will create a Social Security Number Verification file. You can also use the module’s View Command to show multiple state and federal tax liabilities.
AMS makes correcting payroll errors easier and helps business owners avoid needing to make corrections at all. Businesses can improve their recordkeeping and overall organization with the software. You can export data to a Tab‑Delimited Text File or QuickBooks General Journal. You can also use this tool to assist you or a payroll specialist as you input data. If you have specific questions, AMS’ customer support team is available to answer them. You can also fill out a form to try the free 1099-etc Demo and learn about the module’s features.