If you are using QuickBooks Payroll as being a small or medium-sized business entrepreneur, you will also have to focus on the common payroll and bookkeeping mistakes. If you don’t focus on them then you have faced some critical issues. In this Article, we are going to help you out with this:
You need to avoid these kinds of common mistakes that are explained below.
- Error Form 1099 Failure
In case you are not an independent Contractor or you are not such a vendor who is proving over $600 in services, only then you will have to face the 1099 issue.
- in case Classifying Employees as Independent Contractors
It difficult to choose accurate classification. The workers are either independent Contractors or employees. Some worker can be prone to tax Withholding as vivid forms are involved.
- Ignoring Backup Withholding for Vendor Payments
The 28 percent of the payment of a vendor can become the part of backup withholding, in case if his company paid him before obtaining Form W-9 (Request for Taxpayer Identification Number and Certification).
- Imagine of Excluding Reimbursements for Expenses from Reportable Wages
The exclusion of Reimbursements for Expenses depends only upon an accountable plan. Other reimbursements can be included in the business connection in case if there may be a business connection.
- If You Are Doing It All Alone
Whenever the small business owners try to deal with payroll matters all alone. Then this may cause a problem as it needs more experience.
- If You Are Not Depositing Withheld Taxes on time
Withheld taxes that need to be deposited on time and in case you are not depositing them on the correct time, then it can create a problem and will be included in the late deposit fees and with also make you face penalties with maybe 15 percent.
- Executive Income is not containing in Non-qualified Deferred Compensation
One more thing to be focused on is that Executive Compensation is prone to an excise tax. There will be a relief system, in case you ignore this.
- Excluding Travel and Commuting from worker Income
Commuting and travel expenses are not looked as taxable income for an employee, in various cases. But if there is a short-term assignment on travel experiences that it can lead to income tax.
- If You Are not adding the Fair Market Value of Prizes, Gift Cards, and Awards in Employee Income Totals
Various awards are looked as taxable fringe profits and the gift cards are looked as cash that should be added in the taxable salary.
- Appropriate Fringe Profit Value not including correctly
The company cars, country club dues, spousal travel, housing benefits into Taxable Fringe benefits can be added by you. But to calculate Fringe benefit, it is a little difficult.
Get a professional Bookkeeping service in order to get rid of the business payroll tax and various unnecessary penalties from IRS. Bookkeeping service helps you to lead your business to the heights.
So read this article carefully if you desire to solve this issue and other issues. Or in case you want to get rid of all other QuickBooks related issues, you can call QuickBooks Payroll Support Number +1-855-666-1972 to get an instant help.