Do you use QuickBooks for your Payroll?
The amazing payroll software any business would love to use. Paying your employees, managing their salaries, making a deduction or any related task is easier with this software.
This amazing software comes with a lot of technical ups and downs including some mistakes that most of the users are making. Are you aware of these mistakes?
Don’t worry, we have got you covered. Knowing these errors beforehand can get you the best results and will save you some time.
MISCLASSIFICATION OF EMPLOYEES
Employers have to provide social security to their employees. Many companies classify their employees as independent contractors. They do so to escape the extra cost of having employees. This may save you some taxes in the short run but you have to suffer some serious tax penalties eventually.
To determine whether a worker is an employee or an independent contractor is not a tedious job. Reflect on the degree of control that the business has over that worker.
Do you control their work and work hours?
Do you decide how the work will be done?
If you have more control over that worker, the possibility is that the worker is an employee. You must pay close attention while classifying employees and independent contractors.
Losing too much money in the hectic business rules?
ERROR IN THE W-2 FORM
It is the most common form that the employer sends to their employees. Though it is the simplest form, any error in this form can lead to penalties and delayed tax returns. The W-2 form contains information like employee’s annual wages. It also reports the amount of taxes to withhold from his or her paycheck. Read below to get a better understanding of the dos and don’ts when filling the w-2 form:
- Do not download W-2 forms from the IRS website. Instead, you should buy official copies of W-2 forms.
- Do not use the W-2 forms from the previous year as there are amendments every year
- Do not send the forms to the IRS. You need to send these forms to SSA (Social Security Administration).
- File the W-2 forms before the due date. If you are filing electronically, file on or before 31st March.
- Don’t use dollar sign before money amounts or use the wrong font size. Avoid any possible formatting error.
- Review the forms before filing. Sending incorrect forms is not acceptable.
FILING TAXES AFTER THE DEADLINE
Make sure that you deposit your taxes and file them before the due date. If you fail to do so, you will have to suffer from tax penalties. You must also report the earnings of every employee.
It won’t trouble you if you have the Full-Service QuickBooks Payroll plan. QuickBooks files all your taxes all by itself and takes care of this for you.
STATE UNEMPLOYMENT TAX
All the states are required to run unemployment compensation programs. State Unemployment Tax is an employer paid tax. If you fail to pay it on time or there is some discrepancy in the calculation. You will have to pay tax penalties.
Make sure that you are paying at the right rate and using the correct amount of wages. The users of QuickBooks Basic Payroll plan have to be careful of this mistake. The enhanced and full-service plan users are free from such worries.
Our tech ninjas take pride in serving the customers by helping them with the glitches they face. Before you worry for any technical issue, reach our QuickBooks Payroll technical support number.
ERROR IN FORM 1099 MISC
This form is generally issued to the independent contractors. The companies issue this form to the individuals who have paid a total sum of $600 or more in a calendar year. The deadline to submit this form to the payees and IRS is 31st January.
Anybody to whom you are furnishing this form must have a tax ID number. It is the employer’s obligation to fill this number in the 1099 form without any error. Under no circumstances can you choose to leave the payee Tax Id numbers.
Our technical experts have woven stories of success by offering the best ever customer services for QuickBooks Payroll. To craft your story with the unbelievably amazing experience of Payroll, contact QuickBooks Payroll in US and keep your business away from tech bugs.