payroll basics Archives - Page 2 of 3

Avoiding W-2, W-3, and 1099 Mistakes

January 19, 2017 | posted by Abacus Payroll

Accuracy is important, and this is doubly true when submitting your company’s payroll at the end of the year, but with so many forms to keep track of, mistakes are hard to avoid. Here are a few ways to prevent costly errors on your W-2, W-3, and 1099 forms. Common W2 and 1099 Mistakes […]

Handling Pay and Time Off: Jury Duty and Election Day

November 21, 2016 | posted by Abacus Payroll

Paying your employees for time during which they aren’t actively in the office may be a strange concept—yet you’ll find yourself doing exactly that on certain occasions. Whether it be routine jury duty or Election Day, you’ll want to make sure you know the ins and outs of handling paid time off. […]

What to Do if You’ve Accidentally Overpaid an Employee

November 14, 2016 | posted by Abacus Payroll

Abacus Payroll Overpaid employee paycheck

Of all the acceptable mistakes one can make, those involving numbers and other people’s money rank highest in the “oops” category. Payroll mistakes are actually quite common, with around a third of employers making noticeable errors in their calculations; thankfully, the process is entirely reversible. Here is a quick breakdown on what to do if […]

Payroll and Penalties

October 3, 2016 | posted by Abacus Payroll

Avoid IRS penalties and fees for late or inaccurate payroll

As tax season makes its annual debut, it’s important to review your payroll procedures in order to ensure the most accurate reporting possible, as late or inaccurate payroll submissions are often met with swift and devastating penalties from the IRS. You can avoid payroll tax penalties altogether by paying your dues on time and in […]

Anatomy of a Paycheck: What to Deduct and Why

March 25, 2016 | posted by Abacus Payroll

Though tax and paycheck deductions are a routine part of any payroll process, employers and employees alike tend to question what, exactly, goes into the deduction formula. We all start out with a gross pay amount, but just how do payroll managers arrive at the net pay for each paycheck? As an employer, there […]

Local Income Tax: What is it?

December 29, 2015 | posted by Abacus Payroll

Local income tax may seem like the proverbial salt in the wound left by normal taxes, but like it or not, it’s becoming increasingly common. Based on the county or area in which one lives, local income tax is often quite low—ranging from about one to three percent of an individual’s income—and it can serve […]

The Ins and Outs of Payroll Frequency

December 18, 2015 | posted by Abacus Payroll

One of the biggest mysteries in payroll management is frequency. While you design the system that works for your company, you have to consider how often you want to pay your employees, what the perks and drawbacks are of each method, and the tax implications resulting from each design. The following is a basic breakdown […]

Dealing with Holiday Pay and Bonuses without Drowning in Accounting

November 16, 2015 | posted by Abacus Payroll

Figuring out exactly how to calculate, distribute, and account for commodities such as holiday pay and bonuses can be an unadulterated nightmare, especially during the holidays when many small businesses are in their busy months. Without a tax analyst or a payroll specialist to handle the technical details, you’re sure to make a mistake somewhere. […]

5 Common Payroll Mistakes Business Owners Make

November 10, 2015 | posted by Abacus Payroll

Statistics reveal that nearly 40 percent of small businesses experience an average of $845 a year in IRS penalties due to preventable payroll processing or tax management mistakes. Not surprisingly, many of those errors result from small mishaps and minor mistakes that add up to very expensive issues. Here are some of the most frequent […]

Updating Your W-4 Form: When and Why?

October 26, 2015 | posted by Abacus Payroll

The IRS W-4 Form tells an employer how much to withhold from each paycheck to pay your taxes each Tax Day. You can adjust this amount, which can increase or reduce the amount of a refund you receive the following year. IRS W-4 Forms tell employers how much in taxes to withhold from employees’ paychecks […]