Whether you're new to running a company or you're a seasoned business owner, managing your own payroll services can be difficult. Many companies can end up making small mistakes—like mixing up payroll deductions or employee's information—that add up to larger issues. The payroll services firm at Clark W Terrell CPA in Crossett, AR, explains some of the most common problems they can address below.

Issues a Payroll Services Firm Can Address

1. Mishandling Employee Classifications

Depending on your business, you might have full-time employees or independent contractors, and it's important to know the difference. Since taxes are withheld differently for both—contractors are responsible for paying their own taxes, while employees get them deducted from each paycheck—and insurance is different, labeling them properly is essential. A payroll services firm will make sure each worker is categorized appropriately according to IRS regulations and that their withholdings are made accordingly. 

2. Mishandling Garnishments

In the case that an employer is ordered to withhold a portion of an employee's wages, those wages need to be withheld correctly and forwarded to the third party that is handling the debt repayment. An outsourced firm will be able to discuss the matter with your employee and make sure that everything is paid to the right department. Mishandling this situation could mean liability on behalf of the business.

3. Confusing Payroll Deductions

Payroll deductions include federal, state, and local income tax—all of which depend on where your employee lives and where your office is located. Furthermore, Social Security and Medicare are included in those deductions.Hiring a professional who understands tax codes can give you peace of mind that the deductions are made correctly. 

Outsourcing with a payroll services firm can save you time and ensure your employee's tax and payment information is correct. Clark W. Terrell CPA has been providing premier bookkeeping services for the Crossett, AR, community for years; whether you need assistance with tax services or simply want to hand over your payroll services, their team is ready to help. To learn more about what they offer, visit them online or call (870) 364-5006 to speak with an accountant today.