Every year, businesses pay billions in payroll tax penalties. Even if you think you’re managing your payroll taxes the right way, there’s a good chance you’ll end up needing to pay a penalty.
The most common penalties are for not filing on time, late payments, and incorrect payments. Better payroll tax management is the solution for all these issues.
How can pay stubs help with managing your payroll taxes? You might be surprised at the role they can play in helping you get it right the first time.
Pay Stubs Are Excellent Payroll Records
You may create pay stubs because state law says you have to. In almost every US state, you’ll need to provide your employees with a pay stub. Only a few states require paper statements, while others say you must provide one in either electronic or paper form.
There are a handful of states that don’t have pay stubs law on the books. That means you don’t have to provide one to your employees.
You do still need to keep payroll records under the Fair Labor and Standards Act. Pay stubs can help you fulfill this requirement with ease.
Why are good records necessary? It’s not just because the law says you need to keep them. They’re also helpful when it comes to managing your business taxes and your payroll taxes too.
Payroll records like pay stubs provide an easy way to check up on how much you withheld and how much you need to remit to the IRS.
Using a Generator Makes It Easier
If you don’t hand out pay stubs, it’s probably because you find it’s a lot of work. Many business owners spend a good deal of time on payroll management. Making pay stubs may seem like extra work, especially if you don’t have to do it by law.
Creating check stubs for your payroll management can be much simpler. A pay stub generator takes the guesswork out of the tax calculations for payroll.
The generator has tax information already plugged in. All you need to do is add the relevant information, such as your employee’s hourly rate, their withholding rate, and their hours worked. Select your state, and the generator will calculate not just their earnings but payroll deductions as well.
From there, it’s easy to generate reports and more. With the generator, you’ll be able to quickly tally up how much you need to remit to the IRS, your state tax body, and more.
Keeping a Schedule
Generating pay stubs and handing them out can also help you stay on-schedule with your payroll tax management. You have so many days to file after each pay period, so you can use the information from the pay stubs to generator your report quickly.
It’s then much easier to make sure you’re remitting payments and filing paperwork on time. That can help you avoid penalties.
Manage Your Healthcare Business the Right Way
Effective payroll tax management is key for businesses in all industries, including healthcare. Managing your payroll the right way will help you avoid penalties and more.
Looking for more tips and tricks on running your healthcare business the right way? You’re in the right spot! Check in with us often for all the latest news, trends, and more helpful insights.