eBillity

  • TIME TRACKING
    • Overview
    • Mobile apps
    • GPS tracking
    • Project tracking
    • Time Clock kiosk app
    • Business reports
    • Remote workforce
    • Legal time tracking
  • SCHEDULING
  • INVOICING
    • +Billing
    • Legal Time and Billing
  • PRICING
  • MORE
    • Accountants
    • Become an advisor
    • By industry
      • Professional services
      • Legal
      • Architecture
      • Human resources & payroll
      • Design and creative studios
      • IT and freelancers
      • Engineering
      • Retail
      • Healthcare professionals
      • Transportation
      • Construction
      • Manufacturing
    • Blog
    • FAQs
    • Integrations
    • Reviews
    • Web apps
  • SUPPORT
LOGINTRY IT FREE
  • Home
  • Blog
  • Industry
  • Tax Season is Coming: The Importance of Payroll Tax Compliance

Tax Season is Coming: The Importance of Payroll Tax Compliance

by Carla Rose / Thursday, 06 February 2020 / Published in Industry

Running a small business is like balancing seventeen spinning plates on poles – and tax season adds a few more wobbly ones to the mix. Payroll tax compliance wasn’t what you were thinking of when you dreamt of your own business, but now it’s something you have to look into. Not only does tax season mean filing your personal taxes, but now you’re responsible for the taxes of your growing business too.

Don’t worry; we’re here to simplify things for you.

What is Payroll Tax Compliance?

The more employees you have on your payroll, the larger task payroll tax compliance becomes (hence the name). Employers are responsible for withholding taxes from employees’ paychecks. This includes federal income taxes, Medicare taxes, and Social Security (in addition to Social Security and Medicare taxes on behalf of your employee).

Correctly tracking your employees’ hours and wages, along with proper categorization of your employees, is key to ensuring your business is adhering to payroll tax compliance laws during tax season. You’ll have to look at your employee’s W-2 or W-4 forms for the information you need.

Why Is Payroll Tax Compliance Important?

Imagine the gears of your business running smoothly, new profits are streaming in, and your employees are growing in their roles. The dream you had has manifested into a well-oiled machine. Then the tax audit comes with severe fines in tow.

Let’s avoid this, shall we? Here are some common issues that can bring financial burdens on your business:

Employee Misclassification

Do you have a few in-house coordinators for a team of contractors? Those contractors are going to need different forms (1099s) vs. your in-house salaried employees (W-2s). Not designating the people that work for you in the correct category can land you in violation of wage laws and I-9 tax codes. Plus, making sure everyone on your payroll is properly classified can be financially beneficial beyond just taxes.

Overdue Payments

Taxes are top of mind because it’s tax season, but depending on the type of business you run, taxes may (and probably will) need filing far more than once a year. Local and state taxes add to that complication with requirements based on where your business is located.

This means not only will you be fined for late federal payroll tax reporting, but also for not properly filing monthly and quarterly reporting based on the state of your business.

Inaccurate Bookkeeping

When you have to keep track of each individual wage, expense, invoice, and tax withholding on top of local and state regulations, mistakes become easier to make. If there aren’t proper records, your business becomes more vulnerable to possible audits.

Finding One Easy Solution 

All of this sounds like more and more spinning plates to keep balanced than you ever expected. How will you have time for other business priorities while keeping track of all the variables that go into payroll tax compliance?

Make tax season easier with one solution for everything: automation with Time Tracker.

TimeTracker by eBillity takes every one of these variables into consideration and automates them for you.

Keep employees hours and wages properly logged at all times as everyone on your payroll can clock in and out from their phones.

Worried about expenses and invoices being over-reported? Time Tracker keeps tabs on every single one of those too. Never wonder where the business’ finances are going again or if they were reported correctly.

And if you’re worried about having to get new software to make Time Tracker work for you during tax season, worry no more. The tool syncs with software that you are already using.

Like we said before – payroll tax compliance is important, and finding a solution for automating all of it is a big decision. You’re a smart business owner that wants smart solutions. Try TimeTracker for free first with a two-week free trial – no credit card required.

Read more: Tips for Pain-Free Payroll

Tagged under: Accounting and tax

Related articles

Invoice Tracker
Get Paid Faster Add-on Invoice Tracker to Your Time Tracker
Accounting technology
Embracing Change: Technological Advancements in Accounting
Fundbox
Meet Fundbox—our newest integration partner

Subscribe to our newsletter

Categories

  • Industry
  • Integrations
  • New features
  • Other tips
  • Project tracking
  • Scheduling
  • Time tracking
  • Uncategorized

Tag cloud

Accounting and tax Architecture billable hours Billing Budgeting business reports Construction COVID-19 screening questions education and training employee scheduling Employee time off employee time tracking financial company GPS Tracking HR and payroll Invoice Tracker Job costing Law LawBillity Logistics mobile time tracking new feature Professional services project tracking PTO tracker QuickBooks Reckon remote team Reporting Resource management Scheduling Small business tax services time and billing Time clock app Timekeeping Time management Time off schedule time tracker Time Tracking time tracking software Transport Updates Web Apps Xero
TIME TRACKING
+Payroll
+Billing
+Legal
Time Clock kiosk app
Project tracking
Employee scheduling
Mobile apps
Web apps
COMMUNITY
Advisors
Partners
Integrations
Contact us

COMPANY
About
Blog
API
Developer
RESOURCES
Webinar
Security
Privacy
T&S
  • GET SOCIAL

© 2009-2021 eBillity. All rights reserved.

TOP

Book a Demo







    [custom_field post-title]

    Remote work is a new fact of life. Get the eBook and learn how to overcome workforce challenges.

    LEARN MORE
    X