Direct Deposit vs. a Payroll Card

When you’re a small business owner, there are many payroll decisions to consider. One of the most important decisions you’ll need to make is whether you should pay your employees by direct deposit or by a payroll card. By learning the benefits and drawbacks of both options, you can make an informed choice that will benefit both you and your employees in the long run.

Some companies believe that the payroll card offers significant advantages, while others argue that direct deposit is better. In this article, we’ll explore the benefits and downsides of each option to help you make a better-informed decision on which choice is right for your companies’ payroll. 

Direct Deposit 

What is direct deposit? Direct deposit, also known as DD for short, is the electronic transfer of funds which can include social security and retirement benefits, salaries, and tax refunds from your employer, a government agency, or another institution, such as a bank, to your personal or business account. Direct deposit is often the preferred method for employees to receive their pay because of the many benefits such as:

• secure 
• easy
• always on time 
• reduce the risk for stolen or lost checks 

 

Although this option is the most sought after for employees and employers, it can have a few potential drawbacks such as: 

• added cost for the business owner 
• need to fill out new forms when changes occur 
• potential for stolen identity and bank information  

 

Payroll Card 

There are situations where direct deposit might not be the best form of receiving payment. Payroll cards make it possible for those who do not have a bank account or local banks near them to receive a paycheck. Printing out checks can be expensive, and some banks even charge extra for direct deposits. On the other hand, payroll cards come with little to no cost to the employer, depending on the service they sign up for. Although these pre-loaded cards come with many benefits, there are also a few drawbacks such as: 

• additional fees for using the card 
• general fees for the employee 
• the card can easily be lost or stolen 

 

Direct Deposit vs. Payroll Card: Conclusion 

As a business owner, it’s essential to understand the ins and outs of your business’s payroll. This often means learning more about ways you can help your business and employees thrive. Not all companies might see the benefits of using one form of payment over the other. However, there is always a better option for your business. If you are an Ormond By The Sea business owner struggling with payroll, Vision HR is here to help. With a skilled team of experts, we are ready to help you make payroll an easier task. Contact us today to learn more about our services and speak with a payroll expert.

Understanding Payroll Tax Penalties

We’ve all heard the phrase “payroll tax penalties,” but what does it mean? And more importantly, how can you avoid it? If you haven’t thought about payroll tax penalties before, then you’re not alone. Unfortunately, many business owners don’t understand what they are until they first experience them. Let’s look at what payroll tax penalties are and how you can better understand how to avoid them in your Deland business. 

What Are Payroll Taxes Penalties? 

Payroll taxes– are a set of taxes and contributions that employers or employees must pay out to the government regularly throughout a year; these include. 

• State Unemployment Tax
• Federal Unemployment Tax
• Temporary Disability Insurance Tax
• State Disability Insurance Tax
• Social Security

 

These taxes are distributed in such a way as to cover the cost of medical and pension benefits for retired workers. The IRS can impose severe penalties for payroll tax mistakes, including underreporting, overpayments, and failing to deposit taxes. At the same time, penalties can vary significantly by taxpayer and circumstance. As a business owner, understanding these payroll taxes is essential for avoiding penalties and fines from the IRS. 

Payroll Tax Requirements 

As a business owner, you are required by law to accurately report all forms of employee compensation to the IRS as well as withhold the correct deductions from those wages; these can include:

• tips 
• bonuses 
• overtime 
• regular compensation 

 

Although it may seem easier not to withhold taxes from payment such as tips or bonuses, failure to do so can end up costing you more in the long run. 

How Much Will You Owe? 

By the time you realize you have made a mistake on your payroll taxes, it may be too late. A bill from the IRS may already be waiting for you in your mailbox with the exact amount of penalties and fines you have to pay. Each business and situation are different; therefore, you will need to take these considerations into account to estimate any penalties and fines you may have accumulated. 

Suppose you want to understand more about how the IRS calculates penalties and fines. In that case, their website is filled with tons of valuable information in which you can understand how they calculate penalties for different situations and the criteria for charging specific penalties. 

Penalty Relief 

Running a business can be challenging for anyone, and as humans, we are prone to making mistakes. Luckily, some penalties that you may receive are eligible for relief. This is good news to any business owner who has accidentally missed a deadline or failed to deposit certain taxes. Although you not all penalties and situation can be relieved from your records the appeal process will allow you to state your case and, in the end, it might be worth the shot if the penalties get resolved. 

Don’t allow your business to fall victim to payroll tax penalties. At Vision HR, our team of dedicated professionals is here to help you with all your payroll needs and avoid costly situations such as these. Contact us today to learn more about our payroll services. 

What Should You Do It You Can’t Make Payroll?

Owning a business is not easy, and it’s not for the faint of heart. As a small business owner, you run the risk of facing cash flow problems at some point in your life. It might be because of an unexpected expense or inability to collect the money a client owes you. When that happens, you may find yourself asking a question most small business owners have asked themselves one time or the other: What should you do if you can’t make payroll? Let’s take a close look at some of the options you have as a small business owner to help you make payroll. 

Request Extensions 

When you are struggling to make payroll, you have many different options available to you. One option is to request an extension on upcoming bills and payments. If you have a good track record with your supplier, requesting an extension on your payment may be no big deal and allows you to use the cash to pay your employees instead of a hefty bill.  

Unfortunately, this option can only work for so long because the supplier will notice when payments are not being made or when you request an extension. It’s always best to be on good terms with your supplier and keep this option in your back pocket if necessary. 

Sell Extra Inventory 

If you can’t seem to make payroll, you might want to re-evaluate your inventory list. Extra inventory means that you can sell more products to your customers to increase cash flow. Although this is the best route to take, there is another option if you are having trouble selling inventory to customers. 

Instead of letting extra inventory sit in a back room collecting dust, now might be the best time to contact a liquidator. Liquidating excess inventory can increase cash flow and allow you to make up for payroll expenses. One thing to remember is that you may not receive the same amount of money you would if you were to sell the same inventory to your customer; therefore, you must consider the pros and cons before reaching out to a liquidator. 

Apply for a Business Loan

Small business loans are a great way to help increase cash flow and allow you to use the extra money to pay employees and much more. Before applying for a loan, it’s always best to ensure that you will receive the capital you need when you need it. Traditional loans can take weeks to months to hit your account. However, some companies get you the extra capital within 24-48 hours. 

Cash Advance 

Do you have a business credit card? If so, you might be able to take out a cash advance to make up for payroll expenses. Although a cash advance from your business credit card can be helpful, there may be hidden fees and extra costs such as high-interest rates that may not make it the best option for you. 

Another issue that can arise is that grace periods are not typically offered on cash advances. Therefore, you would be accumulating interest as soon as you take out the cash you need; if you don’t have a strategy to begin payment as quickly as possible, the interest and other fees can become overwhelming and not make this option worth the added stress. 

Ask Family and Friends 

Having a supportive network of family and friends can be extremely helpful during these times. If you find that the traditional options will take too long or not be the best fit for you and your business, then you might want to ask a trusted family member or friend for the extra capital you need. 

This type of loan should be treated like any other loan to avoid strain and stress on both parties involved and your relationship. To avoid these problems, it’s best to create a contract in which you outline when you will pay your friend or family member back and the amount of your payments. This will keep both parties responsible for holding up their end of the bargain without any added problems. 

Not all of these options will work in every situation; therefore, you must understand how each will benefit or hurt your business’s finances in the long run. Once you understand these concepts, you can better choose the right option for you and your business. 

The best way to avoid situations such as these is to plan. At Vision HR, we know that life can sometimes get the best of you, and all the preparation in the world can still leave you ill-prepared. Instead of getting by, contact us at Vision HR to help your Palm Coast business with all your payroll needs and avoid these situations from happening to you indefinitely. 

How Seasonal Employees Affect Payroll

Hiring seasonal employees can be an excellent idea for any business. It can help fill in the gaps during a slower time of year and help business owners cut costly hours from their payroll while focusing on more profitable seasons. Seasonal employees can also be excellent additions to a business when trying to comply with labor laws and provide health benefits while minimizing costs. 

Hiring these short-term employees is not without its risks, though. Some employers may need to make changes to their payroll to accommodate the fluctuations in staff during certain times of the year. For example, if you employ seasonal workers during your slow seasons, this can inflate your employee count, which might mean you will have to start paying quarterly taxes instead of monthly. Let’ take a closer look at how seasonal employees can affect your Daytona Beach business’s payroll. 

Seasonal Employees and Federal Laws 

In short, seasonal employees are temporary workers that you bring in only during parts of the year. You may hire them to help with the holiday rush, such as online sales, or if you operate a seasonal business such as a summer camp or ski resort. The most significant benefit to hiring seasonal employees is that you no longer have to continue to pay extra employees once the rush or holiday season has ended. 

According to the Fair Labor Standards Act, seasonal employees have the same rights as full-time and part-time employees. This means that seasonal workers must receive hourly pay of at least minimum wage. You must also compensate them for their overtime work; even though seasonal workers may only be with your business for a short period, you still need to establish a regular pay period with them, whether that be weekly, bi-weekly or monthly. 

Withholdings such as taxes must also be made before paying your seasonal employees. Depending on how frequently your business is open throughout the year, this will determine when you will have to send in your tax forms. 

Effects on Payroll 

Since seasonal employees have the same rights as full and part-time employees, you must make sure that you include them in your payroll management. Failure to include these short-term hires on your payroll could get you into trouble with the IRS when tax season comes.

It makes sense that many business owners would rather pay their seasonal workers under the table, meaning paying them secretly. Even though this might seem like an easy solution to the added paperwork, it’s just another way that the IRS could fine you with potential penalties. In the end, it is not worth the headache and fines from the IRS.  

If you are looking to hire new short-term employees for the holidays or high-demand seasons, it may be best to look into seasonal employees. At Vision HR, we are here to help you with all of your payroll needs, especially when adding seasonal employees to your payroll management. Give us a call today and see how our exceptional services can help your business. 

Payroll: Contractors and Subcontractors

If you are a business owner, you probably have thought about hiring a contractor or a subcontractor to help you with your daily business operations. Both have vital roles, but they are not the same from a legal standpoint. Understanding the differences between contractors and subcontractors is very important for payroll management. 

Payroll can be tricky, especially if it’s your first-time handling employee payroll. The consequences of misclassifying an employee as a contractor or subcontractor can be enormous, including significant fines and lawsuits against you. Therefore, it is essential to understand which employees fall under which type of employment relationship. Join us today to discuss the differences between contractors and subcontractors and how they can affect your business’s payroll. 

Contractor

A contractor is either another company or a person who owns their own business. Typically, you would hire a contractor to complete a set of tasks that you or your current employees might not have the skill set to accomplish. In exchange for a completed job, you will then pay the contractor the agreed-upon amount, and each of you will go on your separate ways. Hiring a contractor might include a business that does:

• marketing
• website design 
• content creation 
• business branding 

 

Although the contractor is working on completing a set of tasks that need to be finished, they are not your employee. Once you have signed the contract to begin work, the contractor will allocate their time to complete the task on the agreed-upon time frame, and in the end, you will pay them for the amount stated within the contract. 

Subcontractor

Now, this is where things can get confusing. A subcontractor is also a business owner. Subcontractors have a set of skills to complete different tasks and projects to help the contractor complete the overall project that you have designated to them. The best way to think about this is that the contractor oversees the project’s completion and coordinates their skills and other tasks to subcontractors to complete the whole project. 

Let’s break this down even further. If your company requires content creation, you might reach out to a contractor specializing in different types of content creation. Once you have signed the contract and the project begins, the contractor might hire a few subcontractors with a specific set of skills to complete, social media captions, blogs, website copy, and much more. Hiring different subcontractors allows the contractor to oversee each job and effectively manage the project to complete it as a whole. It is also important to note that the subcontractor is not your employee.  

How Do They Affect Your Payroll?

The biggest question you may have when hiring either a contractor or subcontractor is how will this affect my payroll? In most cases, you will not be paying your new hire an hourly rate; instead, it will be one flat fee discussed within the contract. Because of this, your payroll will not be affected. 

Since they are not your employees, you will not be responsible for providing them with benefits, such as health insurance, sick time, or vacation. The contractors and subcontractors will be responsible for their benefits and will also have to pay their taxes at the end of each year. 

Contractor and Subcontractor Conclusion

As a business owner hiring a contractor or subcontractor can help alleviate some of the daily stress you may experience. If you need help to complete a specific task or project but don’t have the skillset, then these new and easy hires might be just the thing. Luckily for you, there is little to no effect on your payroll. However, if you are a business owner in the Ormond Beach area and are looking for a payroll service that can help you prevent potential confusion, look no further. Call us today at Vision HR to help you with all of your payroll needs. 

Choosing the Best Payroll Frequency for Your Ormond Beach Business

As a business owner, you need to run payroll regularly to ensure that you are paying your employees their earned wages. This article will show you what payroll frequency is and how to determine what the best option may be for your Ormond Beach business.

What is Payroll Frequency?

The basics behind payroll frequency are the amount of time between when an employee is paid. It will determine when they receive their wages and how often. There are 4 different types of payroll frequency that you can use in your business, which include:

• weekly
• bi-weekly
• semimonthly
• monthly

 

Let’s take this a step further and break down each frequency to show its pros and cons. The other considerations you must be aware of when choosing the perfect payment frequency for your business.

Weekly

Did you know that this type of pay frequency is the second most common form? When you choose to pay your employees weekly, they will receive their paycheck at the end of every week, typically on a Friday. Since the paychecks are more frequent, they generally are less money. However, many employees enjoy receiving a weekly paycheck to better handle their money and pay for bills at the end of each week.

Bi-weekly

With this form of payment, an employee will receive their paycheck every other week. For them, this means that there will be more money but less frequent. Bi-weekly payments are the most common payroll frequency. For many people who fear monthly paychecks, this can be a great middle-ground between weekly and monthly.

Semimonthly

This frequency can be confusing in comparison to bi-weekly payroll. However, the most significant difference is that instead of receiving a paycheck every other week, your employee will only receive a paycheck 2 weeks out of the month. Your employee will only have 24 total paychecks instead of 26 in the entire year compared to bi-weekly.

Monthly

Last but not least, we have monthly. For most people, being paid monthly can be challenging; the main reason being is because of the long periods without a paycheck. As an employee, it’s essential to know how to properly handle these large paychecks to ensure you don’t spend it all in one place. Because of these reasons, it is the least common pay frequency used in most businesses.

Other Considerations

Now that we have discussed the 4 different payroll frequencies, it’s also important to note that there are a few other factors that should come into determining which one you choose, such as:

• legal requirements
• the size of your business
• employee classification
• payroll cost

 

Does payroll seem like an impossible task to manage while being a business owner too? Not to worry, contact our professionals here at Vision HR. Our payroll service will help you focus more on running your Ormond Beach business.

Calculating Overtime for Payroll

When calculating payroll, it’s essential to make sure you compensate your salaried employees for any overtime pay. Under the Fair Labor Standards Act, also known as FLSA, salaried workers must receive overtime compensation for work that exceeds a 40-hour workweek.

Overtime must be accounted for when completing payroll to ensure the proper taxes are taken out of the wages and that the employee was paid for their extra time. Let’s take a closer look into the importance of understanding what overtime is and how to calculate it.

What is Overtime?

You may be wondering what the criteria are for overtime? In simple terms, overtime is considered to be any hours worked over the standard 40-hour week. The requirements also state that only employees working for a salary rate can receive overtime.

For example, if your employee works their typical 40 hours plus an additional 5 hours, amounting to 45 hours in total for a workweek, that extra 5 hours will be counted as overtime pay. You can also have overtime pay starts after a lower number of hours, such as 36 instead of 40.

Why It’s Essential to Get It Right?

Understanding how over time can affect your payroll tasks is essential. Not paying your employees the proper compensation if they qualify could get you into a lot of trouble with the government and your employees.

How to Calculate It?

Calculating overtime is just as easy as hourly wages. Typically, the overtime rate is time and a half. This means that if your employee makes $15 an hour, their overtime pay would be $22.50. Now, let’s say that your employee worked 40 hours at $15 an hour; their weekly salary would be $600 before taxes. If they worked an additional 5 hours, their overtime pay would amount to $112.50, which would be added to their usual salary creating a total of $712.50 before taxes.

Other Factors to Consider

There are a few things to consider when figuring out overtime pay. The first is that different states have specific laws regarding overtime pay that you should be aware of. Another thing to be mindful of is the pay frequency in which your employees are paid. Overtime is calculated weekly. Therefore, if you pay your employees on a bi-weekly or monthly basis, you will need to find their weekly salary first by doing a little extra math. After that extra step, you’ll easily be able to figure out their overtime pay and compensate them accordingly.

As a business owner, you should always make sure you are doing right by the law and your employees. Following the criteria for overtime will make payroll much easier and less stressful. Professional payroll services take the guess-work out of having to worry about overtime compensation. Turn to our team at Vision HR to help your Holly Hill business with all your payroll needs; Contact us today to get started.

How to Fix 3 Common Payroll Mistakes

Mistakes on your business’ payroll can get you into trouble with the IRS. Your intentions may be in the right place, but even a simple error submitted for review can come with many penalties and fines.

Don’t panic just yet! There is good news. Today we will be discussing 3 common payroll mistakes and how you can make sure they don’t happen to you.

Payroll Mistake 1: Late Payroll

Within every state, there are requirements for payroll frequency. This means that you must pay your employees on a specific frequency, either monthly, weekly, biweekly, etc. Failure to pay on time can mean two things.

First, not paying your employees on time can more than likely cause them to lose trust in you. It can also cause issues considering many employees rely on their paychecks to make bill payments and survive. Secondly, this action could make you non-compliant with the regulations set in place by your state, which can, in turn, get you into trouble.

To ensure that this does not happen to you, pick the pay frequency that works for you and your employees within your state regulations. Next, set reminders to make sure the task gets completed on time. Make sure to account for the processing time as well; this will also help ensure your employees get paid on the right day.

Payroll Mistake 2: Paying the Wrong Tax Rates

The government can change different aspects of payroll as they see fit. Tax rates are one of those things that change periodically. If you are not aware of the current tax rates, this could make payroll even more complicated. Taxes that typically have yearly updates include:

• Social Security tax
• Medicare tax
• State income tax
• State unemployment insurance tax
• Local income tax
• Federal income tax

 

Paying the wrong rates could put you in a situation where you will become responsible for paying any of the owed taxes, penalties, and interest charges, so it’s crucial to stay up-to-date on any changes that occur.

Payroll Mistake 3: Wrongfully Classifying Exempt Workers

When your employees fill out their W-4 form, they will fall into two categories; Exempt or nonexempt. There are regulations made under the Fair Labor Standards Act (FLSA), which gives employers a guideline on classifying their employees. The FLSA requires that exempt employees must meet all three of the following criteria to be classified as exempt, which are as follows:

1. The employee must make $35,568 annually or $684 per week
2. The employee is paid on a salary basis
3. The employee’s job duties fall into one of the three categories; executive job duties, administrative job duties, and professional job duties

 

On the other hand, we have nonexempt employees. The FLSA protects these employees and ensures that they must be paid the federal minimum wage and receive overtime pay for hours worked over 40 hours a week. Always check with your Wage and Hour District Office to determine your state’s minimum wage laws and overtime pay.

Failure to improperly classify your employees could mean you would need to pay them back wages from any overtime that they missed out on because of your mistake.

It’s human nature to make mistakes; we are not perfect and slip up now and then. No matter how many times you review documentation and numbers, there is always room for errors. Instead of adding to the payroll stress, allow us at Vision HR to relieve the stress that payroll brings. Our team of professionals has years of experience and are ready to help your Deland business with all of your payroll needs; contact us today!

Payroll Terms Business Owners Need to Know

As a business owner, you probably already have so much on your plate. Between daily activities, expenses, and so much more, it can be hard to understand every aspect of your business, especially payroll. Whether you handle these services yourself or hire someone else to get the job done, you should know some of the most common payroll terms; join us today as we take a closer look.

1: Accrue

This verb means to build up or accumulate over time. In short, this term involves all forms of compensation owed to the employee but has not been paid to them as of yet. The main aspects of this include:

• wages
• commissions
• salaries
• bonuses
• payroll taxes

2: Deductions

Payroll deductions are necessary to note because there are two different forms of deductions: mandated and voluntary. The employer’s responsibility is to withhold these deductions from every employee’s paycheck, including commissions and bonuses. If these are not withheld, the employer will be liable.

Government-mandated deductions include things such as Medicare taxes, Social Security taxes, and federal income taxes. Child support payments can be withheld from the employee’s paycheck or garnished if there is a court order. Voluntary deductions include 401(k) plans, insurance plans, and possibly union or uniform dues.

3: Employee’s Withholding Allowance Certificate AKA W-4

Even if you are a new business owner, you more than likely already know what a W-4 form is if you have ever worked as an employee. This form will tell your employer how much federal income tax to withhold from your paycheck. Typically, most employers give this form to new employees before they begin working. It’s important to note that you will need to fill out another W-4 form if you have any significant life changes such as:

• married
• had a child
• divorced
• started a side hustle
• paid too little or too much in taxes

 

The IRS usually recommends that every employee fill out a W-4 form at the beginning of each calendar year to ensure you pay the right amount of taxes. However, if everything remains the same, there may be no need to do so.

4: Tax Exempt

In some cases, an employee can be tax-exempt, which in short means that they are not going to have federal income taxes withheld from them on their paycheck. There are two situations that must apply to the employee for them to claim an exemption on their W-4 form, which are:

1. Within the previous year, the employee had a right to a refund on their federal income taxes because they had no tax liability
2. In the current year, the employee expects and refund of the federal tax that was withheld

5: Gross Pay

Gross pay is calculated by totaling up an employee’s earnings throughout a given period before any deductions. A simple equation to figure out gross pay is Gross Pay = Net Pay + Taxes and Deductions.

6: Income Tax

Did you know that income tax is one of the most significant revenue sources for the United States’ federal government? Individual employee income taxes fall into three categories: federal, state, and local income tax. Depending on what state you live in, you may only be responsible for federal income tax.

7: Net Pay

Net pay is essential because this is the total amount of money the employee will receive on a typical paycheck. This is calculated by taking their gross pay and subtracting any taxes and deductions.

8: Social Security

Social Security is considered a pay-as-you-go program. When you have a job that takes taxes out of your paycheck, you automatically get social security taxes to take out as well. This money is accumulated by the government and paid back to you every month after you retire. However, if you pass away, this money will be sent to any beneficiaries you may have, such as any surviving spouse or children.

9: Sick Pay

This is a benefit that you, as an owner, can offer your employees if you choose to do so. It’s important to note that there is no federal law requiring business owners to provide this type of benefit to their employees. If you decide to offer sick pay for your employees, make sure to include your compensation for sick pay within the policy since there are a few different ways that you can provide this type of payment.

You can also offer third-party sick pay instead where compensation comes from an insurance company. That insurance company must cover your business to provide this form of compensation. You should note that payment is only taxable in the first six months, and then the employee becomes exempt from taxes on sick pay compensation after the seventh month and so on.

10: Withholding

This term goes along with your employee’s W-4 forms. Withholdings are the portion of an employee’s paycheck directed to federal, state, and local tax collections. To determine the amount of withholdings on an employee’s paycheck, they must fill out the W-4 form. Withholdings can decrease the amount of taxes employees pay at the end of the year. However, if an employer does not withhold enough taxes, it may lead to the employee owing money at the end of the year.

As a business owner, it’s essential to be informed about all aspects of your business, even if it’s something that you do not handle. Payroll can be complicated to understand; however, you’ll understand it a lot better once you know these simple standard payroll terms. Here at Vision HR, we are dedicated to helping your Palm Coast business with our exceptional payroll and timekeeping services; get in touch with us today to learn more!

5 Payroll Myths Debunked

No matter what your misconceptions are about payroll, it’s essential to get your facts straight before you end up with a massive mess on your hands. The consequences of your mistakes and false beliefs can get you and your business into a lot of trouble.

We’ve debunked 5 common payroll myths that will help put your mind at ease, and give you the facts you deserve, read on to learn more!

Myth 1: It’s Easy to Do in-house Payroll if You Are a Small Business

No matter if your business is big or small, every business owner shares the same struggles and goals; You want to focus on what matters most by saving time where you can. In a way, payroll for small businesses can look simple from the outside. You have fewer employees, which means less information, and you believe that means you will have to spend less time on payroll.

However, suppose you go into this situation with that mindset. In that case, you could be setting yourself up for a whole list of errors and mistakes, especially if you are not aware of the most current government regulations. The IRS doesn’t care how big your business is; what they do care about is the accuracy of your reports.

Myth 2: Seasonal Hires Can Be Paid Under the Table

A seasonal employee works for a business over a short period to help relieve the workload. Typically, we see this happen around Christmas, where companies put their hiring signs up and ask for help to handle the new rush of customers.

Let’ talk about pay for seasonal workers. At first, you might think that just because these are temporary employees, it doesn’t make sense to add them to your payroll for taxes. Many good intending business owners believe that this will make things easier for them and the employees. Unfortunately, this situation can come with a host of consequences, causing an even bigger problem. You should treat seasonal workers like any other worker and always add to your payroll. This will save you from issues such as fair pay, problems with the IRS, and much more.

Myth 3: We Are Experienced in Payroll and Don’t Need Help

No matter how many years of payroll experience you have, you’re no match for the ever-changing regulations that the government makes. If you’re not caught up with all the right information, you could be setting yourself up for any mistakes along the way. One simple mistake could cost you significant penalties and fines.

Myth 4: in-house Payroll Is Cheaper

If you think about the bigger picture, you’ll know that in-house payroll is not always cheaper. Let’s say, for instance, you accidentally make a mistake on the documentation. These fines can quickly add up, and the IRS will want you to pay these fines promptly.

In-house payroll can take time away from what matters in your business. If you have very few employees and need to manage your store, taking time out to do payroll can hurt business sales, productivity, and much more.

Myth 5: Outsourcing Payroll Is Too Much of a Hassle

Finding the right payroll services for your business is not as hard as it may seem. Today there are experts all over the country offering quality services to companies in need. Once you find your perfect match, all of the work gets taken over by professionals with years of experience in the field.

All you need to do is supply them with the correct information, meet deadlines, and have an open communication line. In the end, outsourcing your payroll is going to save you from wasting your precious time.

Now that we have debunked the most common payroll myths, we hope you have understood how much payroll services can benefit your business. At Vision HR, we are here to help make running your St. Augustine business even more manageable. If you’re interested in our payroll services, contact us, and see how we can begin helping you today!