Tailored Payroll Outsourcing for Every Business Size

Exempt vs. Non-Exempt: Incorrectly classifying employees as exempt (salaried) or non-exempt (hourly) can result in improper overtime pay.

Employee vs. Independent Contractor: Misclassifying workers as independent contractors instead of employees can lead to legal and tax complications.

Failing to accurately calculate overtime pay for non-exempt employees can lead to underpayment and potential legal issues. Overtime should be paid at one and a half times the regular rate for hours worked beyond 40 in a workweek.

Missing payroll deadlines can cause delayed employee payments, dissatisfaction, and possible legal penalties. 

Timely submission of payroll taxes is also essential to avoid fines and interest charges.

Not maintaining accurate and current payroll records can lead to problems during audits and when calculating benefits or resolving disputes. Employers are generally required to keep these records for three to seven years.

Errors in withholding federal, state, or local taxes from employee paychecks can result in tax liabilities for both the business and the employees. This includes mishandling payroll tax deposits and submitting incorrect tax forms.

Mistakes in setting up or managing direct deposit information can lead to delays in employee payments and 

administrative issues.

Failing to adhere to court-ordered wage garnishments can result in legal consequences and fines. Employers must correctly deduct and remit garnished amounts to the appropriate agencies.

Failing to stay informed about changes in federal, state, and local labor laws can result in non-compliance. This includes new minimum wage laws, overtime regulations, and other labor-related requirements.

Errors in calculating and deducting benefits such as health insurance, retirement contributions, and other employee benefits can cause issues with overpayment or underpayment.