Small business owners wear so many hats, and quite often, they don’t understand the risk that goes with ‘going it alone’ in human resources and payroll administration. Mistakes in payroll compliance are common and can have significant repercussions.

Some of the most common mistakes include:

• Misclassifying exemptions
• Misclassifying employees and independent contractors
• Non-compliance with the Equal Pay Act
• Workers’ compensation errors

Maintaining organized payroll records is a key strategy to prevent compliance errors. Ensure that newly hired employees submit all required documents, and meticulously review them for any instances of reversed numbers, incomplete or missing data fields, and inaccurate dates. Subsequently, file the paperwork systematically, facilitating easy access for both the HR and payroll departments.

• Maintain meticulous records.
• Utilize payroll software for automation, accuracy, security, and integration.
• Create a payroll compliance checklist.
• Conduct regular internal audits.

Frequently Asked Questions:

1. What is payroll compliance?

– Payroll compliance involves adhering to tax regulations, wage and hour rules, and other requirements related to payroll, ensuring accurate compensation for employees.

2. What are the laws governing payroll?

– Key laws include FLSA, FICA, FUTA, Equal Pay Act, Davis-Bacon Act, and international regulations.

3. Why is payroll compliance legislation important?

– It ensures accurate compensation, funds social service programs, reduces the risk of penalties, lawsuits, and improves workforce morale.

4. How do you ensure accuracy in payroll?

– Classify workers correctly, maintain meticulous records, stay informed about regulations, automate payroll, and conduct regular audits.

5. How does Lyons HR payroll work?

– Quickly and easily manage payrolls with Lyons HR Cloud software. Review timesheets, process your payrolls, and see payroll status in real-time.

Navigating payroll compliance is a multifaceted task that requires a deep understanding of evolving regulations and a commitment to accuracy and is essential for businesses in 2024 to ensure accurate and timely compensation for employees.

As you manage the complexities of payroll compliance, Lyons HR is here to assist you. With expertise in payroll and tax administration, our team provides precise calculation, timely deposits, and assists in assuring meticulous record-keeping. We invite small businesses to take advantage of a free 15-minute discovery call with our team to learn more about how our PEO services can streamline payroll processes, mitigate compliance risks, and contribute to the overall success of your business.