Payroll Services—Denver, Colorado
Even small mistakes in payroll can cost your business in penalties and fines
We assume you didn’t start your Colorado business so you could manage payroll for your employees. But sometimes that just comes with the territory. Managing a payroll system can quickly become overwhelming, especially when you have to keep up on both state and federal rules and regulations.
Plus, payroll isn’t just limited to paying your employees. You’re also responsible for payroll taxes and paperwork that must be filed—in a timely fashion. Or you can be penalized with a hefty payroll tax bill.
Importance of Accuracy in Payroll
Payroll is an important financial component of your business because it can have serious impact on the net income of an organization. In addition, it is subject to a number of laws and regulations and requires precise recordkeeping. It’s important that you are aware of your company’s responsibilities regarding payroll:
- Paying Employees. You must pay your employees in a timely and accurate manner. If you don’t, you’re essentially stealing from them. And you’re breaking the law. The U.S. Department of Labor has laws in the books on everything from minimum wage and overtime to what employees are exempt and nonexempt. If you don’t comply with the laws, you may be forced to pay back wages, a waiting time penalty, attorney fees and even civil or criminal penalties.
- Withholding and Filing Taxes. You’re required to withhold a percentage of employee paychecks for Social Security and Medicare, unemployment and state and federal taxes. Failure to pay your payroll taxes can result in penalties, a tax lien or levy and potential audits.
- Providing Feedback on Your Finances. Payroll can help you determine if your business is losing more money than you’re bringing in because you’re spending too much on employee salaries.
- Managing Payroll in Colorado. Being an employer in the state of Colorado also means that you have to report new hires and you only have a certain period of time to do so in order to stay in compliance. There is also State Unemployment Insurance reporting and payments. Beyond that, there is a fine line between an employee and a contractor in the eyes of the Colorado Department of Labor. Any small mistake can result in large penalties and fines for your business.
- Managing Payroll Taxes. Payroll taxes are imposed not only on employees but on employers also. The amount of taxes you owe are calculated as a percentage of the wages you pay your employees. Keeping up with the changes to employer portions of payroll taxes and ensuring you are properly withholding income tax from your employees can be tedious. But for many businesses it doesn’t make sense to hire a payroll manager internally due to the increased overhead for this one employee who, in most cases, is not performing a full-time job. Outsourcing your payroll to a large payroll company means limited customer service, becoming an account number in their system and yet one more vendor you have to manage.
True Resolve Payroll Services
True Resolve Tax Professionals is determined to help your business succeed. We can easily manage all of your payroll needs—everything from cutting checks to keeping payroll journals, managing payroll tax deposits and returns, and overseeing quarterly and year-end documentation and filings.