When it comes to calculating the appropriate amount to withhold from an employee’s paycheck, it’s not up to the government to get it right; it’s up to you. (Photo: Shutterstock)
One thing every employee looks forward to is payday. Whatever the cadence is (weekly, bi-weekly, or semi-monthly), checking their bank account for the correct amount or cashing their paycheck is the most they should have to worry about. On the front end of the transaction, however, much goes into ensuring those wages are paid correctly and on time. Not to mention all of the post-payroll requirements of paying and reporting the taxes.
Payroll is the most significant expense for most companies, and if not processed correctly, it can become even more expensive. One study found up to 82 million workers in America have experienced paycheck errors. The situation can quickly spin out of control when you combine the challenges of processing payroll from pay period to pay period with the quarterly payroll tax reporting obligations.
