The Basics of Payroll Compliance for 2023

Prioritize your business’s payroll compliance for 2023 irrespective of your total size or industry. Stay compliant to avoid costly litigation or any fines and penalties. Staying compliant should also matter to your business for your employee retention and high regard. Compliance laws ensure that you provide employees with fair compensation for their work. Make sure that your business does not take shortcuts when it comes time to do your payroll management tasks. A top-of-the-line worker will look for employment elsewhere if you have sloppy compliance when adhering to the relevant payroll laws and regulations.

Advanced Micro Solutions Payroll Software cannot prevent payroll mistakes. Download our free 1099-etc Demo software today and explore the ways that we can help our users stay efficient. Users can also see how our optional add-on modules better ensure accurate data entries for tax year 2023.


Common Mistakes with Payroll Compliance for 2023

Familiarize yourself with common compliance mistakes for payroll and understand how they occur so that you can avoid them. Remain vigilant for these common errors:

Misclassifying Workers – Properly classify your independent contractors and W-2 employees. These workers have different tax implications. Do not try to reduce your tax responsibilities by misrepresenting who your business employs. Regularly reevaluate all employee classifications to better guarantee their accuracy.

Exemption Classification Errors – Determine the exemption eligibility of your employees. Do not provide overtime pay under FLSA to your exempt employees. You must alternatively pay a non-exempt employee for any overtime hours. Minimize the risk of potential lawsuits, audits, or required back wages with reliable payroll compliance software.

Missing Tax Deadlines – Prepare yourself for potentially complicated tax filing processes. Build a reliable payroll team or hire an in-house expert who understands which tax forms to submit on the federal, state, or local levels. Remember that your business may owe forms at varying times and intervals based on numerous factors. Strategize in advance how you will meet all deadlines.

Poor Recordkeeping – Stay ahead of your paperwork to ensure its accuracy and to maintain the necessary documentation for your business. The Internal Revenue Service may audit your business at any time. Prioritize responsible recordkeeping in case a federal or state tax agency asks for any specific records.


Best Ways to Ensure Your Business’s Compliance

Adopt certain best practices to better ensure payroll compliance for 2023 tax filings. Certain steps to take may include:

Creating a Payroll Calendar – Use a payroll calendar to reduce the risk of incurring financial penalties by missing deadlines. Creating a comprehensive calendar will help you to organize which tax forms to file by certain dates.

Talking to Experts – Small and medium-sized businesses may not have the budget to hire one or multiple payroll experts. Do some research and see whether your potential vendor provides a comprehensive Frequently Asked Questions page. Confirm whether the vendor also offers their users strong customer service support.

Making a Compliance Checklist – Write down your business’s needs and focus on your payroll compliance for 2023 requirements. Consider making separate lists for new hires or quarterly and annual payroll requirements. Make the lists comprehensive for yourself and potential HR or payroll employees who may need to cross-reference them.

Reviewing All Documentation – Payroll software catches many common management errors, but it is not an infallible solution. You or your staff may wish to review different documents ahead of your filing deadlines. An extra set of eyes may limit avoidable mistakes from causing issues.


Why Small Businesses Prefer AMS

We designed our add-on payroll module with small businesses and compliance in mind. Our software processes “live” or after-the-fact payroll in all 50 states, plus the District of Columbia and Puerto Rico. Users may automatically calculate federal, state, and local payroll taxes for relevant tax years. We include and enable users to regularly update the state and federal tax tables as needed. Print over 30 different supported check types individually or by a date range.

Our full accounting suite of tools recognizes that payroll compliance for 2023 extends beyond standard payroll tools. Our other five optional add-on modules are E-File, Software Generated Forms, Forms Filer Plus, Affordable Care Act Filer, and 1042-S Filer. Improve your efficiency and ability to make multiple deadlines by pairing AMS Payroll with one of our E-File options. Electronically file your business’s year-end W-2 and 1099 forms to the IRS or Social Security Administration. Eliminate the need to purchase any traditional paper forms from the IRS. Our Software Generated Forms module supports a variety of tax forms and works with Windows compatible printers.

Software Solutions from AMS

Our W-2 and 1099 Forms Filer is our only required platform. From there, users pick the services they need. Choose from the tools below to build out your customized accounting software.