7 QuickBooks Payroll Mistakes You Must Dodge

by George Walker QuickBooks Technical Support

Planning to switch to QuickBooks Payroll from your boring software?

Nice thought. You must have been enticed by the amazing features that it offers; calculating salaries, payroll taxes, and direct deposits just to name a few.

Business accounting can be an intricate process in itself let alone payroll management. If you are looking for great functionality along with customizable features and affordability, QB payroll makes a great case. Besides, it is also celebrated for its top-notch support that you can avail via QuickBooks payroll support phone number.

But before you get all excited and everything, let us give you a heads up on some common payroll mistakes that you must avoid.

Misclassification of workers

The classification of employees can be quite confusing, mainly when there are part-time, full-time workers, and independent contractors. You may accidentally misclassify an employee only to find out that you have been penalized by the tax authorities.

Unlike employees, you don’t have to pay minimum wages to an independent contractor and also don’t reserve employment tax from their wages. In case you mistake an employee to be a contractor, you will be holding their wages and government revenues from employment taxes.

If you are having trouble classifying a worker, don’t bother. Call up the experts at QuickBooks payroll support number and take their help.

Mistakes in the W-2 form

Every employer sends this form to their employees. It mainly contains information like their annual wages and helps in estimating the amount to hold back from their paychecks.

Although it is a simple form, even the slightest error can induce penalties and deferred tax returns. If you have made a mistake in this form, call at QuickBooks payroll support number (+1(866)511-4911) and have a word with the tech experts for instant support.

Read below the mistakes that you must dodge while filling out a W-2 form.

Rather downloading this form from the IRS website, you must buy official copies of it.
Do not use the previous year’s forms.
These forms must be sent to SSA, not IRS.
These forms must be filed before 31st March every year.
Skip formatting errors.

Missing deadlines

Mark the date on your calendar so you never miss out on the due date to deposit your payroll taxes otherwise prepare yourself for hefty tax penalties.

If you subscribe to full-service payroll plan, all your taxes will be filed automatically. To know more about this plan and its benefits, call at QuickBooks payroll support phone number and know from the experts.

Omitting to send 1099s

If you give $600 or more in compensation in a year to the contractors, you also have to give them a 1099 form. Companies often neglect to send out this form on time. But if you use the full-service payroll plan, this won’t be your problem anymore. This form will be automatically sent out to the independent contractors and you can simply avoid penalties.

Apart from this, if you have any trouble running payroll, you are most welcome to take help from the experts via QuickBooks payroll support phone number.

Mistakes in form 1099

In case you fetch this form to a contractor, it is your duty to make sure that it has been filled correctly. The independent contractors have a tax ID number and it is mandatory to mention this number in the form. You cannot choose to leave the tax ID number of the payee.

Calculating overtime pay incorrectly

Calculating overtime wages can be intricate as they are different from normal wages. If you fail to estimate the overpay amount correctly, it will lead to penalties, interest and most of all unhappy employees.

As per FLSA guidelines, you must pay the employee 1.5 times his regular pay if he works beyond 40 hours in a week. The rate and wages may fluctuate in some cities and states. To know the overtime laws in your state, call at QuickBooks payroll support phone number (+1(866)511-4911)and the pros will guide you.

State unemployment tax

This tax is paid by the employer and if there is any discrepancy in the tax calculation or you fail to pay on time, you will be penalized. The amount generated is contributed to unemployment compensation programs.

You have to see that your tax rate is correct and you are paying the right amount of wages. If you don’t know how to calculate the state unemployment tax, it is better to take help from the experts than paying extra money in the form of a fine. Just call at QuickBooks payroll support number and all your worries will be put to rest.

The final thought

Although QuickBooks Payroll is an apt solution to your payroll issues, there are still some mistakes that you must steer clear of while working on this software. One minor trouble can pose a big problem and make it even more challenging.