Keeping Payroll Records is a Daunting Task
May 30, 2015 | Business Plans, Financial Planning, IRS Regulation, Tax Planning
Paying employees involves more than just issuing checks. Sometimes small business owners don’t realize how many specific records must be kept. For each employee there has to be records including details such as name, address, and Social Security number, but also information about pay rate, tips, payroll taxes, fringe benefits, and any other pertinent payment items. These records must be kept for a certain period of time.
These records aren’t just for meeting tax requirements. Many federal, and possibly state, laws require some or all employers to retain certain records. There may be responsibilities for small business owners under the Fair Labor Standards Act, the Age Discrimination in Employment Act, the Family and Medical Leave Act, the Immigration Reform and Control Act, the Occupational Safety and Health Act and/or the Employee Retirement Income Security Act.
This can seem like an overwhelming task, especially when your Maine-based small business is growing. It’s imperative to keep on top of these records as mistakes can lead to costly penalties. Keeping track of these payroll related records is time-consuming and stressful at times. It may be beneficial to have a third party handle the payroll. Contact Filler & Associates for more information.