Workers' Comp Payroll Mistakes Can Hinder a Business' OperationsApril 27, 2012 — 1,942 views
Managing employee payroll can be tricky, especially when it comes to handling workers' comp claims. Avoid the perils of workers' comp payroll mistakes with this guide featuring common problems that many people encounter.
Some companies underestimate their projected annual payroll, which could result in serious tax issues. Not only could your business become a target for audits, but you may also receive a large premium after the payroll investigation. Additionally, failing to use your financial resources properly may lead to a substantial audit bill that needs to be paid in its entirety at one time, which could impact future payrolls.
Conversely, overestimating a payroll can do similar damage to your company. A business won't lose the extra money it spends in this area, but it might not have access to the funds for an extended period of time. Your organization may recoup the extra funds it spends on workers' comp after an audit, but these resources might have been used elsewhere to benefit your company.
Effective payroll management and planning is critical to avoiding workers' comp payroll mistakes. These errors can be detrimental to your business, so completing analysis and research may help you control your business' finances.