Employers deal with lots of issues regarding taxes, employee benefits, payroll processing and human resources each year and 2019 is no different. Featured below is part two of a list of the biggest issue’s businesses must stay aware of this year. The biggest issues are as follows:
Cyber Attacks Security and Privacy – Today there’s constant news of ransomware, cyber-attacks and real-world invasion of workplace computers. It is critical employers take these real-world risks seriously because they are happening and impacting companies and governments directly. Company’s must take action directly to stave off risk by doing the following things: never use Social Security numbers as employee id’s; use secure email when sending sensitive information of any type; employ direct methods of destroying sensitive information by using secure shredding services; and finally, when departing from a workplace workstation completely logout of all devices.
W-4 Changes – Because of the tax reform law of 2017, many updates to Form W-4 have been mandated by the federal government. However, because the updates are complex, complying with the mandated updates is not required in 2019 so the W-4 is almost the same as the 2018 W-4.
Healthcare Reform for States – Federal regulations and guidelines have been changed that will impact the markets for health insurance with respect to Health Reimbursement Arrangements (HRAs), Short-term Limited Duration Insurance (STLDI), Association Health Plan (AHPs), which may end up impacting how employers provide health insurance.
Employer Shared Responsibility (ESR) IRS Mandated Enforcement – Large employers need to comply with Employer Shared Responsibility. When an employer receives a 226J letter, the onus is on them to respond to the letter an provide the requested information with respect to all company departments including benefits, human resources and payroll.
Department of Labor Rule Making Effect – During the U.S. Department of Labor fall 2018 regulatory agenda it was communicated that the its Wage and Hour Department was going to issue several Notices of Proposed Rule Making regarding many regulations which would impact virtually all employers. The biggest change being made was to overtime regulations, but there were many other changes to regulation effecting the rate of pay. These changes would not go into effect most likely until March 2019.
The Final Word on Employer Legal Issue Awareness
Companies need to be sure they are in compliance with respect to all employer laws and regulation mandated by both State and Federal government entities. It is in a company’s best interest to be aware of the biggest issues of the day and make sure it is compliance with all rules and regulations.
Employers deal with lots of issues regarding payroll, payroll taxes, employee benefits, payroll processing and human resources each year and 2019 is no different. Here is a list of the biggest issue’s businesses must stay aware of this year.
Sexual Harassment Deterrence Training Issues – Companies now must be more aware than ever about sexual harassment problems. When the #Me Too movement evolved it created a firestorm in the workplace across the country when it comes to awareness of sexual harassment and its need of deterrence. Starting in 2018 and continuing in 2019 the amount of sexual harassment lawsuits grew significantly around the country. Many states passed new legislation, laws and regulations with built in required workplace training to prevent sexual harassment.
Paid Time Off Issues – Nationwide 40 plus states and city governments have rolled out mandated paid leave laws with additional ones set to launch paid time off laws onto the books during 2019. Paid sick time off laws are more commonplace, it’s true that paid family leave laws cause more hardship and are more difficult for companies. Family leave paid time off laws are paid for by either company or by its employees and they may require mandatory reporting by company’s with respect to employee pay, worked hours and amounts of deductions from paychecks.
Federal Government Reduction of Mandated Retirement Plans – President Trump made an executive order instructing both the Department of Treasure and the Department of roll out suggested legislations with built in regulations to reduce the financial load small businesses deal with while providing savings plans for employee retirement.
Gig Work and Rapid Payment – People working in the Gig economy getting paid rapidly is a big part of the employment scene in 2019. Keeping payments to gig economy workers secure and making sure they get paid rapidly is very important to businesses in today’s employer world.
The Final Word on
Employer Legal Issue Awareness
Companies need to stay in compliance with respect to all payroll processing, insurance compliance and employer laws and regulation mandated by both State and Federal government entities. It is in a company’s best interest to be aware of the biggest issues of the day and make sure it is compliance with all rules and regulations.
Take a minute to review the pluses and minuses
of switching your business to an outside payroll processing services provider.
Featured below are both the pluses and the minuses.
Time savings – Several surveys over the years completed by a variety of business associations have reported that business owners place payroll and payroll taxes as the number 2 task that takes up the most time and creates the most hassle of all the tasks categories it takes to run a successful business. It’s obvious that running payroll 1 to 4 times a month requires a ton of time and focus to complete. Switching to an outside payroll processing service provider frees up time and improves effectiveness for most business owners.
Reduction in Expenses – Each pay period requires completion of a long list of required tasks including preparing and paying mandatory payroll taxes, running payroll reports, figuring out wages for the entire company staff, printing, signing and handing out payroll checks.
Better Company and Employee Data Security – In 2019 payroll processing service providers provide, mirrored backup systems, several server farms, the most up-to-date technology, solid secure SSL (secure socket layer) firewall protected systems to safeguard private employee and company information and data.
Keeping Current with Regulations – It is hard to stay compliant and current with payroll tax laws and payroll taxes. The financial penalties are huge. Payroll processing service providers know all the rules and regulations like the back of their hand. Their primary objective in running their business is implement this knowledge, process your payroll for your company and keep you current with all requirements and regulations.
Ease of Use Getting Wage Reporting and Employee
– Certain payroll processing service providers do not offer reporting
on payroll costs and other critical data about employees due to the fact they
do not have the information or because the data is on their servers, which your
business does get access to for various reasons.
Time Issues on Fixing Payroll Mistakes –
Payroll companies are sometimes slow to respond to payroll errors. If the
company or the employee needs aren’t met when it comes to payroll errors, it is
bad for everyone.
Payroll Services Pricing –
In some instances payroll processing service providers do not customize pricing
to fit a company’s needs. Check to make sure the services provided fit your company’s
needs and not the other way around.
Chance Your Payroll Processing Provider Closes
Its Doors – Businesses close all the time. It can be due failure,
loss of a primary partner or any number of reasons. If this were to happen to your business, you
may lose out on access to company payroll data, employee data and potentially
your company’s money.
minuses described here do not have to be part of your picture. The main thing
to make sure you do is your due diligence in checking out the company thoroughly
first. Use the following guidelines to make a smart payroll processing service
Recommendations from associates, mentors and business owners
Documented credentials including time in business, similar company
payroll processing experience and confirmed business licenses.
Confirmed quality customer service and personal attention to
Services and support offered meet your company’s needs
Pricing and additional fees or charges are documented upfront
Reporting of data, data reporting needs and security of data are
In today’s modern web-based technology world,
companies can choose from multiple options to complete payroll. Business owners
that opt to do it themselves is one way and businesses that choose to assign
the task of doing payroll to a department, like human resources, is another way
to go. Lots of businesses choose to go to a provider outside the company for
payroll processing like a bookkeeper, accounting firm or an online payroll
processing company. The rub lies in figuring out which method is the best way
for your company to do its payroll.
Small-business owners need to take a hard look
at where their time is best spent. Look at how much time is being spent now by
you each month doing the company payroll. If the answer is too much where for a
small monthly fee payroll is completed and the time is gain is used closing new
sales. Review your payroll to make sure you are current with all state and
federal laws, rules and payroll regulations. If you’re not sure or you’re not
current, it might be time to switch to hiring a payroll processing provider.
Look to see if you’re keeping all your company’s and your employee’s financial
data well secured and private. Also, check to make sure your company’s records
for wages, benefits and retirement programs are on time, current and correct.
Payroll Processing Success, But Is It Taking
You Away from Important Tasks
You are managing running your company’s payroll successfully. However, if keeping up with running payroll, maintaining legal requirements, data security and records is eating up a good amount of your time, you may want to switch to outsourcing payroll to an online payroll processing company. Payroll processing company will calculate your company’s payroll and its associated taxes, print and handout checks, complete direct deposit payroll checks and complete all the company’s payroll reports. It will file payroll taxes, issue annual Forms W-2, set up worker’s 401(k) deductions and connect their contributions to investment account providers and keep records on benefits of employees.
Payroll is the biggest financial duty each business must comply with other than paying its legally owed income, payroll and sales taxes. Payroll mandates accurate payment to employees and full compliance with all federal, state and local government laws, rules and regulations. Severe financial fines by government agencies like the IRS and State and employee anger will be part of a business’ picture if payroll processing is not done accurately and on time. Make a choice to use online payroll processing or to use in-house payroll processing hinges on having a full understanding of the needs your business for both payroll itself, financial accounting, cash flow and budget forecasting.
In-House Payroll Processing
processing is a solid selection to consider if your company features ten or less
employees with little to no changes in hours, benefits and deductions from week
to week and month to month. If your company’s payroll processing requirements
are simple and payroll fields for deductions are easy to update and answers to
questions from employees are easy to provide, keeping payroll processing in
house using a payroll software program. The bottom line for in-house payroll
processing is the company’s employee charged with the task of doing payroll and
managing it on-going basis absolutely has to stay current with company staff
turn-over, payroll tax laws and stay current with tax filings, tax withhold for
the company and its employees and pay payroll accurately. In-house payroll processing
might reduce security and risk factors for the company and its employees’
Bookkeepers and CPAs Payroll Processing
the USA outsource payroll processing to bookkeepers and CPAs all the time, but
most of time each one prepares it similarly to doing it in-house and bank
interface services including 401(k) deductions and direct deposit for employees
may not be offered or available. Be certain to check to see if the bookkeeper
or CPA provides the knowledge and skill sets your company requires such as payroll
changes like increased wage per hours or new deductions to keep any payroll processing
mistakes from being made. Federal tax liability
payroll deposits and payments to the IRS are a 100% a business’ responsibility.
If an error is made the IRS will call you the business owner and not the
payroll processing company. Be sure the company you hire can and will take care
of all tasks on time and without fail.
Payroll Processing Service
Payroll processing service provides are professionals with
high-level payroll tax and regulatory mandate expertise. They are professions
with excellent skill sets that will make sure your business is 100 % current with
all regulatory reports and tax deposits, leaving your time completely unencumbered
from dealing with payroll task responsibilities. Payroll processing services
include disbursing payroll wages to company employees via paper check, payroll
debit cards and direct deposit as well as automated deductions from paychecks
for benefits retirement savings such as 401(k) and 403(b). Payroll services
quite often provide services guarantees and the chances of mistakes and ensuing
penalties for incorrect or tardy payroll tax filing are very low. The federal
government’s Electronic Federal Tax Payment system provided by the U.S.
Department of the Treasury is a no cost secure service gives employers the
ability to login online to the Treasury website and confirm their tax payments
have been made through the system.
Online Payroll Processing
Managing and overseeing payroll 365 days a year, 24 hours a day, is offered by online payroll companies through a web based online payroll processing platform complete with an SSL certificate and firewall to protect sensitive company and employee data. Once enrolled with an online payroll processing provider you will not have to buy payroll software or expensive equipment. On-boarding new employees for payroll, entering current payroll and tracking employee paid vacation and sick leave pay can all be done from a desktop, laptop computer or a smartphone. Most online payroll companies provide payroll services, payroll tax filing and payment. Signing up for online payroll services with tax filing and payment included gives company owners peace of mind and it frees up time to manage and grow their company.
Companies need to check to see if there are extra fees assessed to employees when issuing payroll themselves via debit card and when choosing a payroll processing company offering pay debit card program. Companies need to offer several ways for company employees to receive their pay. A company is not allowed by law to require employees to receive pay solely by payroll debit card. Employees must be provided several options as to how they receive their wages, not just via debit check card. It has been reported over recent years that some employers didn’t do this for their employees, which is against the law. In response the Consumer Financial Protection Bureau issued a bulletin covering legal regulations covering payroll cards. The main points on the bulletin were as follows:
Fee Documentation – Documentation must be provided of fees
charged by the issuing bank to the employee related the EFTs (electronic fund
transfers) and written explanation about liability limits.
Account Records Access – Regular statements must be given to
card holders by payroll debit card issuers electronically online or telephonically
providing account transaction history and fees charged.
Unauthorized Transfer Liability Limits – Employee’s limit of
liability for use not granted if reported within a specific written time period.
Rights to Resolution for Errors – Payroll debit card financial
institution mandated response to card holder within 6 months of occurrence of mistake
Several different organizations over recent years have provided
statements about the pluses of wages being disbursed to employees via payroll
debit cards and regarding the top ways for employers to make the most of the
program for their employees. The top recommendations included issuing pay without
fees being charged (employer pays the fees) and to provide the wages using the
top credit card brands such as VISA, MASTERCARD and DISCOVER. Employers must also
give complete documentation of fees employees may incur.
Payroll debit cards are a big part of
providing payroll to employees today that do not have a bank account. Operated
correctly, payroll debit cards provide wages at a low cost with speed, easy and
convenience to employees. The program helps both the employer and employee work
together efficiently. Look today with your local payroll company to see if your
company can save money and improve its payroll process each month by starting a
payroll debit card program as part of its payroll disbursement options.
Businesses are required to complete and meet obligations to employees. Payroll problems are difficult for today’s high-tech business world. A business’s payroll division oversees multiple components of employee compensation. It manages payroll processing, direct deposits to employee’s bank account, FICA, FICO, State Income tax payments to government entities including the State and the Federal Government, reporting requirements, time and attendance tracking, company payroll management reports, worker’s compensation, 401k’s plus other types of retirement account reporting, unemployment claims, vacation time-off and more. This is a giant set of tasks to manage for a small business while running the business itself. Putting time into these tasks means a business owner is not focusing on building and managing current business.
What is the Appropriate Amount of Time to Spend on Payroll?
The practical way to answer this inquiry is a business owner needs to calculate the amount of time spent working on payroll each week, every two weeks or month and multiply it out for 52 weeks, 26 weeks or 12 months. After the totals for each segment of time are calculated, a business owner needs to look at the true cost of working on payroll by comparing it to the amount of business not generated related to working on payroll instead of managing and building the business. To make the comparison and analysis useful and valid each payroll task needs to be included in the assessment including managing tax reporting, employee benefits, retirement funds to new name just a few. Several studies over the years indicated in real numbers that business owners spend 3 full weeks a year dealing with federal tax problems. Add all the hours spent dealing with all the other payroll problems and tasks and it becomes readily obvious managing payroll is costly from both a time and business growth perspective. There’s not a fixed number or an empirical study out there that provides when a business owner should hire a payroll processing company, instead of doing it themselves. However, it’s easy to assess if an owner is spending 10 – 20 % of their time working on payroll and all its accompanying issues it’s likely a smart move to hire a company to process payroll to save time and money and then put those savings into managing and building business.
Look at the questions below to determine if it’s time to hire an outside payroll processing company:
Is the time spent on payroll exceeding your comfort level?
Is your business growing, adding more employees and now is
payroll becoming a much bigger task than before?
Are payroll mishaps become more costly due to tax penalties assessed
for filing errors charged by the IRS?
Is payroll taking up so much time that the critical time needed
to manage and grow your business is compromised.
From a logical assessment perspective, if the responses to this set of questions happen to be yes, it’s makes good sense to outsource payroll processing. The monthly cost of payroll processing fees, while not nominal, is affordable for most businesses. The benefits of outsourcing payroll processing are time-savings, cost savings generated from reduction in penalties and fines and the improved ability to focus time on and energy towards building and growing your business.
If you’re having a hard time to get payroll done promptly
each week or every two weeks and your team isn’t up for completely the task the
right way and on time, it’s time to alter your procedures.
Remaining Super Organized with Your Company’s Payroll All the Time
To stay organized and maintain records of company staff
member data, including hours worked and benefits provided, you need to develop
and keep a payroll record. This organized payroll record must feature the sum
of employee gross pay, a list of all deductions, and complete net pay for every
payroll period. You likewise must maintain a record backing up all your
historical company payroll information for each week, month, current year and
It’s true, that online bookkeeping systems have a payroll
register, including a full set of required record keeping tools, such as
records of employee wages. Maintaining
this data is critical for finishing your company’s annual payroll sums records,
the accompanying reports that go with them, and to finish your company’s
mandatory annual payroll tax obligation jobs.
Establishing a yearly tax obligation schedule is likewise a
great plan, which should be set up prior to the beginning of each new year.
Maintaining this calendar will make certain you maintain a working knowledge of
the entire set of payroll tax days during the whole calendar year.
Handling payroll properly and reliably is required by Albuquerque business’ due to multiple legal and ethical requirements. The fact of the matter is, you’re legitimately obliged to compensate your workers. Not paying your staff in a timely manner will flat out ruin your firm’s credibility, and if you do not stay in compliance your business will deal with the lawful consequences.
Paying workers continually and in a timely manner
demonstrates your firm’s economic security. It additionally affects staff
member spirits. Paying on time protects a company’s credibility with its
employees. Employees that do not get paid on time will look for work elsewhere
Precise payroll processing is additionally critical to stay
in line with both government and state wage and hour laws. Legal changes can be
intricate. You need to steer clear of dangers like lawsuits, fines, as well as
massive penalties by keeping payroll in line, paying on time and 100%
Is your business dealing with payroll processing problems?
If so, it’s time to do some investigation.
If you’re releasing paychecks filled with errors, for
instance, your workers will find them! Be positive– dig much deeper right into
all transaction mistakes and determine perfect solutions as to just how you
will certainly stop future payroll processing blunders from occurring ever
again. Employees expect to be paid on time and to be paid accurately.
In 2019, more than ever, it is a fact it is the responsibility of every company, business and corporation to make certain that staff members are precisely compensated for different sets of hours worked. Even though employers know it is a legal requirement to for business to pay workers for the hours worked, employees do not always get paid the amount of wages they have coming.
In some cases, this might be intentional, however possibilities are great that typically, it is caused by an oversight. Charged with the duty of producing accurate wage information, it is up to Human Resources to maintain a Human Resources system that can track the necessary details to make sure workers are compensated properly for hours worked.
Also, it is a fact, large businesses are vulnerable to problems when it concerns payroll. It has been reported in recent years that several big employers were found to have kept millions of dollars in overtime back earnings. According to information provided to the US Department of Labor, which performed the investigation, each of these companies have “fallen far short of keeping accurate records and had not paid employees for thousands of hours worked.”
Paying staff members in a prompt and 100% accurate fashion is a fundamental part of keeping employees pleased with their job and willing to work hard for your company. Since it depends on Human Resources to aid and retain valued employees, it remains in the best interest of all businesses that employees are paid what they are owed. It is likewise a vital action in lawful conformity, people by law are required to be paid for the time they perform services, nothing less and nothing more.
Taking care of HR, and wage and hour details, can be a difficult job. A skilled HR consulting business or payroll processing company will certainly collaborate with your company to execute the Human Resources and payroll software application systems that meets the one-of-a-kind demands of your business, helping make sure that payroll is accurate, and your business stays in compliance with wage and hour laws.