Costly payroll mistakes that could ruin your business[Infographic]admin
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
- 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