tags: Common payroll mistakes made by small businesses, CPA, CPA NYC, Manhattan CPA, payroll mistakes, small business cpa, small businesses, tax filing, Taxes, W-2, w-4
As a CPA who specializes in serving small businesses, I know that Payroll is something that many businesses perceive as a burden. But it doesn’t have to be.
Listed below are some commonly made payroll mistakes. Avoiding these mistakes will make payroll much easier for you, and your CPA.
1. Missing filing deadlines. This is an obvious mistake, but it is a very common one, and one that all businesses should avoid. Missing your filing deadlines can result in costly penalties, and no one wants that. If you have trouble keeping track of your deadlines, create a calendar with all of them listed and make sure it is posted on your desk.
2. Incorrect filing of W-2 forms. There are various guidelines that you must obey when issuing your W-2s. These forms have to be issued no later than January 31st, and you have to make sure that all of the demographic information is correct and complete. If you are unsure of what information needs to be included on the W-2,
consult a CPA.
3. Improper data gathering. Make sure that all of your data is correct on all of your documents. Don’t wait until the last minute to check and see if all of your information is correct. Check all of your forms carefully, and make sure you have time to correct any mistakes that may have been made before your taxes are due.
4. Not saving payroll records. It is very important that you hold on to all of your payroll records. Not keeping track of them could cause you very serious grief later on. Generally, all records, including W-4 forms, time sheets and cancelled checks need to be held onto for four to six years.
5. Misclassification of workers. The number of businesses that are hiring temporary freelance work is growing, so it is imperative that you make sure that the correct forms are being filed. For instance, if you are employing an independent contractor, different forms must be filed for them than that or a regular employee. In fact, filing the wrong forms on a freelancer could mean you end up owing more in employment taxes than you need to.
Avoiding these mistakes is essential for any business. If you find your business fitting into any of the above mentioned categories during tax time, the services of a CPA such as myself can help. My Manhattan based CPA practice has been helping small businesses with payroll and other tax issues for over 7 years. I have assisted clients in just about every industry, and I have offered my CPA services to small businesses all over the country and the world.
About MEDOWS CPA, PLLC: We are a boutique CPA firm located in New York City (Manhattan), dedicated to helping small business owners, freelancers and individuals. In addition, we also provide CPA services to people outside of the state and country.
Jonathan Medows, CPA
MEDOWS CPA, PLLC
A Unique, Boutique New York CPA Firm Serving the Needs of Individuals & Small Businesses