Debunking the Most Common Payroll Processing Myths That Exist Today

Payroll processing can be difficult, especially if you’re a small business owner. There are so many different laws and regulations surrounding the topic, as well as some common myths.

So if you want to know the difference between myth and facts, then keep reading this article! Because payroll automation should not be as difficult as it has become.

1. Paper Timesheets Are Required to Compensate Employees

Paper time sheets are hard to keep up with, and they cause many mistakes. This is why only a small amount of businesses still use them.

In contrast, digital time sheets are the future of business ownership. They’re more efficient, cut down on supply costs, and streamline the payroll workflow.

 2. A Small Business Owner Should Do Their Own Payroll

Having the correct payroll workflow is important for your employees and the livelihood of your company. However, it can be hard to manage payroll, even if you’re a smaller entity. 

There are a lot of regulations you must follow. And if you don’t, you could face legal trouble. Luckily, there are a lot of companies that understand payroll isn’t an easy task. For example, Payactiv works with all types of companies– big or small!

3. It’s Less Expensive to Do Payroll in House

This myth is not true, especially when you add in the costs of supplies and labor. But here are some other costs that are associated with in house payroll: 

  • Recruitment costs 
  • Hiring a payroll specialist or hr professionals
  • Payroll Software
  • Monthly payroll automation fees
  • Banking fees
  • Insurance 

All of these costs can add up and leave you with hefty payroll costs. Not to mention, if you’re a small business owner, this means you have to spend more time focusing on these details. 

4. A Small Business Owner Does Not Have to Adhere to Any Payroll Regulations 

Big or small, the government forces all businesses to follow a rigid set of regulations when it comes to payroll. If any business fails to follow these set regulations, it could catch a fine or even a criminal charge.

So if you’re a small business owner, do not follow your own set of rules. Make sure you adhere to your state and federal laws!

5. Taxes Can Be Done by HR Professionals

Probably one of the scariest myths out there is that an internal worker can adhere to all of the tax rules. The truth is even when companies outsource their payroll, taxes can still be hard to complete. This is partly due to the ever-changing federal and state laws regarding business taxes.

And most companies wait until the end of the year to get their taxes in order. However, the best way to adhere to tax laws is by hiring third-party payroll automation. This way you have records of all of your taxes, and you also have experts if you need help finalizing your tax forms!

Payroll Processing Made Easy

Hopefully, after reading this article, you don’t have to sigh after hearing the words “payroll processing”. So make sure you get payroll automation to avoid common payroll mistakes.

And if you enjoyed this article, don’t forget to check out the rest of our website for similar content!

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