CSIS Insurance Services, Inc. Blog
There are particular challenges when you are running a business, and one of them is payroll management. For you to be able to stay apprised of the risks of payroll management, you need to focus on the following fundamentals. Here are some ways to lower down the risks in payroll management.
Understand the Process
Many businesses outsource their payroll functions, which makes sense for it helps in reducing time, money and effort spent on payroll administration. One advantage of outsourcing is that they can offer better technology and offer additional services that are related to regulatory compliance.
However, mistakes may still arise, that’s why it is essential for you that you understand your company’s requirements and the process for tracking, recording and administering payroll. It’s also a good idea that you monitor the tax accounts to verify that the deposited funds are on time and the amount is
Know What’s Taxable
It is critical that you know what’s taxable and what’s not. Wages are taxable, but this includes many types of compensation including full and part-time salaries, hourly wages, bonuses, and commissions. It would also help to look into what’s not generally subject to taxes. Some non cash compensation may be deemed as a fringe benefit, therefore, excluded from the employee income.
Fraud Risk Assessment
As a business owner, you should be proactive to conduct fraud risk assessments of your payroll process. In this case, you will be able to identify the risk. Once you have determined the risk, it’ll be easier for you to develop a plan to mitigate those risks by improving controls or procedures and assigning individuals who can monitor and make sure that they enforced the project appropriately.
Maintain Sound Records
If your business is outsourcing its payroll functions, it is critical that you maintain high visibility level of your payroll records. It is an excellent idea to perform a periodic internal audit of these records to ensure that they’re in good shape. You don’t want to lose or mishandle payroll documentation for this may result in a lawsuit.
Managing your payroll is tricky and complicated, that is why you shouldn’t let your guard down. It would help if you respected the complexity of the payroll process.
It may help you, too, in investing in an insurance plan, to assist you if any issues may arise. Be smart and diligent in keeping up with your payrolls. At CSIS Insurance Services, Inc., we aim to make our client's life easier with policies that are tailored to their needs. You can get more information about our products and services by calling our agency at (888) 501-2747. Get your free quote today by CLICKING HERE.
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