As a nationwide company offering comprehensive payroll services to businesses of all sizes, we hear our fair share of complaints from new clients who have had enough of doing payroll in-house. They are frustrated by all the complexities of payroll and benefits administration to the point that they are ready to hire BenefitMall to handle things for them. That's good for both them and us. Letting us handle payroll saves them time and money and allows us to do what we do best.
As a matter of curiosity, you might be wondering what those complaints are. Well, you're in luck. Below is a list of the top five complaints we hear most often. If you are experiencing any of these things yourself, we invite you to give us a call to find out what BenefitMall can do for you.
1. Too Many Deadlines to Keep Track Of
Payroll and tax professionals are experts at constructing calendars to help them keep track of their deadlines. Small business owners, not so much. We routinely hear complaints about how difficult it is to keep track of the many deadlines related to tax withholding, reporting, and payments.
Virtually every employer in the U.S. faces federal deadlines. Most also have to deal with deadlines at the state level, and some even have county and municipal deadlines to worry about. The more deadlines in play, the more difficult it is to keep track of them so as not to miss any. Rest assured that missing a deadline could mean a significant penalty.
2. Employee Misclassification Problems
The IRS recognizes two kinds of employees: those who are officially on the payroll and those who work as independent contractors. The problem is that IRS regulations do not necessarily provide a clear delineation. There are plenty of instances where a worker could go either way. Get it wrong, and the company is facing potential fines. From the employer's perspective, nothing is more maddening than employee misclassification as a result of unclear IRS guidelines.
3. Generating W-2s with Errors
Generating a W-2 with errors creates a problem for workers trying to complete their tax returns. Furthermore, employers are required by law to furnish W-2s no later than January 31. A common complaint among employers is having to work with employees to make sure information is up-to-date before issuing the forms. When they cannot get that information, they have to hope for the best.
4. Calculating Unemployment Taxes
Among the most confusing aspects of payroll is calculating unemployment taxes. Federal law requires the states to maintain their own unemployment systems into which employers pay. But state laws are not uniform. Employers have to use the correct rate and account for certain income thresholds. And if a business is active in multiple states, the unemployment tax scenario can become a nightmare.
5. Handling Garnishments and Levies
Lastly, employers frequently complain about having to handle court-ordered garnishments and levies. They may have to withhold child support or money that goes to repaying some sort of outstanding debt. Employers do not get compensated for this, even though it takes a considerable amount of time to get it right.
As you can see, there are a lot of things that have to be accounted for in payroll processing. We have listed just five of the most common complaints here, but there are others we didn't get to. Here's the point: any trouble with your payroll processing is a clear indication that you could benefit by partnering with BenefitMall. Our comprehensive payroll services are just what you need to take the pressure off your company.