Payroll is an essential component of any organization’s monthly to-do list, whether you’re a business, government entity or nonprofit. Without it, well, you wouldn’t have very happy workers. But the importance of payroll goes beyond just ensuring your employees are paid correctly. Proper documentation and withholding practices are essential to the financial well-being of your business or organization.
People and payroll are key metrics to monitor in your business.
Take Pennington County for instance. The county was chosen at random to undergo an IRS examination. The result? Substantial penalties for mishandling payroll taxes. It’s trickier than it first appears. The penalty is a result of a payroll-tax practice officials believed they were doing correctly.
This is just one example of ways that a simple mistake in payroll withholding can cost your organization. Here are a few tips to help protect you from an IRS penalty:
Know your tax due dates
If you have a check that is dated with a Saturday, Sunday, Monday or Tuesday date, taxes are due Friday.
If you have a check that is dated with a Wednesday, Thursday or Friday date, taxes are due the following Wednesday.
Understand Payroll in Order to Make Informed Decisions
Payroll is a vital part of how your business or government runs. It can also be an incredible blow to the financial side of your organization if not handled correctly. Ensure you have the proper rules and procedures in place for compliance. Taking simple steps up front and asking the necessary questions can help you avoid a painful penalty down the road.
Confused by the ins and outs of payroll?
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