Payroll compliance can be understood as sticking to all the rules and regulations at the state, local, and federal levels. If you are an employer and own a business and you overlook any of the laws, you are going to face the consequences.
In North Dallas, adhering to laws is really important; every other state has its own regulations that one needs to remain aware of. There are penalties that can be imposed on them, and in the worst-case scenario, they might be asked to leave the business altogether.
However, if you have the knowledge or have a North Dallas accountant on your side, you can navigate through the complexities with ease. Furthermore, it is also going to help you understand how you can avoid troubles associated with taxes and have a positive workforce around you.
It would help if you also looked out for your employees, as their livelihood is highly dependent on getting payment on time. This is going to help in building a positive environment around you and with your employees.
What are the laws and regulations associated with Payroll?
Payroll laws can be extensive. There are local and state laws, but there are also some federal legislation that you as a business owner should be aware of:
· Equal Pay Act:
It is designed not to let wage discrimination get in the way, which might be done based on the sex of the individual. This act ensures that men and women are paid equally, especially those who are performing the same job and are in the same workplace as well.
· Fair Labor Standards Act:
The FLSA sets a national minimum wage. It also takes care of requirements associated with record-keeping and any laws that are there and associated with child labor laws.
· Federal Unemployment Tax Act:
There is assistance on a temporary level for those who lost their jobs. The job was lost when they had nothing to do with it, and they were not responsible for it. This is another type of payroll tax.
What does Payroll compliance include?
There are several things that come under payroll compliance; let us look at some of the things:
- Withholding payroll tax correctly from a person’s income that is subjected to tax.
- Payroll tax returns must be filed carefully for each jurisdiction.
- Wages need to be calculated in the right way, and overtime is going to be included as well.
Tax liabilities should also be deposited on time with the state, federal, and local agencies. There are different aspects of payroll, such as FUTA Compliance, FLSA compliance, federal income tax compliance, etc.
What can happen in the case of non-compliance?
If you are not paying wages to employees on time or you are not filing the taxes correctly, you can get yourself in trouble. If you are not keeping the payroll records in the proper manner and accurately, then it can affect your business significantly.
There are various consequences that employers might have to face as a result of noncompliance; let us look at some of them:
- Legal expenses can be there.
- Penalties can be added, and interest can increase.
- Employee morale is also going to go down.
- Government agencies may conduct audits and charge fines.
What are some common mistakes made by people in payroll compliance?
The form can get misplaced, or the information might be filled incorrectly. Let us look at some common mistakes in payroll:
- Not classifying the employees correctly is essential as it tells you whose taxes are withheld from the pay and whose are not.
- The invalidity of the exemption request can result in employees and employers receiving a letter from the IRS.
How can a professional help?
Professionals know their way around and can come up with different strategies and plans to ensure that your business activities remain compliant with the payroll. Accountants can guarantee the accuracy of records and that you do not find yourself in legal trouble because of any inaccuracies.
