As a small business, you most likely have a lot on your plate. Trying to manage your products, services, employees, customers and finances can seem like an impossible juggling act. Often, in the day-to-day operations of a small business, payroll can become a forgotten and rushed task. Below we outline common payroll mistakes your small business could be making.
1. Tracking start/end dates
As a growing small business, your team may be rapidly expanding or you may be welcoming interns to your team regularly. It can be difficult, however, to remember the exact date new employees started to work for your company. While this may not seem incredibly important, accurate start dates are essential to correctly work out annual leave and maternity leave.
2. Failing to meet deadlines
Any deadlines set by the ATO (Australian Taxation Office) must be followed closely and should not be considered flexible. You must always ensure to provide the ATO with accurate information before any deadlines specified. If you fail to meet ATO deadlines, this could seriously affect your business and you may incur large fines.
3. Incorrect insurance premiums
As a small business owner, it is your responsibility to ensure you have the correct insurance premiums in place. You must ensure your insurance meets legal requirements and you offer your employees the benefits they are entitled to if they are eligible to receive them.
4. Managing employee expenses
Employee expenses can be taxable benefits, but this can change depending on what state you are in. You must ensure you are following the legal requirements of your state and keep a record of your employee expenses which is updated regularly and is precise.
5. Not maintaining confidentiality
It can be easy for a business owner to pass on payroll duties to another employee if they do not have the time or energy to complete payroll services. This, however, can be a huge security breach and payroll tasks must not be passed around employees as this can result in a serious confidentiality and security problem.
If you’d like to avoid payroll mistakes, trust our comprehensive bookkeeping and payroll services. Contact us today to learn more.