Costly payroll mistakes that could ruin your business[Infographic]

Costly payroll mistakes that could ruin your business[Infographic]

Payroll is complex, time-consuming and highly detailed. Small business owners may choose to do payroll in-house for cost consumption. Payroll errors can easily damage a small firm.

Small and medium businesses are finding it very difficult to manage their payroll function in-house. Many firms have outsourced their payroll functions to external third-party payroll service providers, as this enabled them to focus on their core competencies

Common Payroll Errors:

  • Late tax payments
  • Tax form errors
  • Submitting wrong payroll tax amount
  • Misclassifying employees
  • Incorrect employee details
  • Incorrect employee time tracking
  • Depositing and reporting employment taxes incorrectly
  • Improper payroll record management
  • Late payroll processing

Statistics:

  • IRS penalizes small businesses billions of dollars for payroll errors.
  • According to the IRS, 33% of employers make payroll errors costing billions of dollars annually.
  • 54% of the American workforce is affected by payroll difficulties.
  • 49% of workers would begin a new job after the paycheck issues.
  • 66% of Americans would experience financial trouble if they were delayed by one week.
  • 37% said they were forced to pay late their mortgages, credit cards, car loans, and other expenditures.
  • Gig workers fared worse than salaried or hourly workers, as 20% of them were underpaid and, 20% were paid late.
  • 25% the most common payroll inquiries are about employee payslips.
  • Payroll stats say that companies opt for payroll outsourcing Services save up to 18% over businesses that tackle it themselves

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