In his May article in the Journal of Accountancy, Don Mcloughlin (vice president of marketing at ADP Small Business Services) lists 9 common payroll errors and provides tips and resources that may help prevent these common errors from occurring. Here is a list of the 9 common payroll errors from the article:
1. Apply the latest laws and regulations.
2. Don’t miss a deposit deadline.
3. Process wage garnishments correctly.
4. Don’t put too much reliance on payroll software.
5. Classify nonexempt employees correctly.
6. Don’t treat employees as contract workers.
7. Report fringe benefits.
8. Ensure that social security benefits are correct on W-2 forms.
9. Don’t mishandle withholding for employees who receive third-party sick pay.