Payroll is such an important cog in your business’ machine. It’s what builds trust and confidence in your employees. It can determine how compliant you are to tax regulations. Good payroll management is easier said than done, and there certainly some pitfalls you want to avoid. In today’s post, we’re going to detail some mistakes businesses commonly make, and how you can avoid them. 

Misclassifying your employees. In particular, many businesses mix up employees and contractors. Contractors are becoming more mainstream in business, but it’s an important distinction you need to make. If your workers are employees, you owe payroll taxes on their wages. 

Poor record keeping. Poor record keeping can sink your business. We believe it’s better to be safe than sorry, so we recommend keeping record of important documents, including timesheets, canceled checks, proof of past payments, etc. 

Not paying the IRS. If businesses owe the government and creditors, many will pay creditors back first, which is a huge mistake. Pay your payroll taxes first, because if you don’t, you can become liable for these outstanding taxes— even if your business is incorporated. 

As a business owner, it’s easy to become overwhelmed by business responsibilities. Things like payroll can slip in the cracks, but understand this: you cannot afford to make mistakes on your payroll. Hiring Primary Payroll to handle your obligations can be the right decision to make. 


With over 20 years of experience in the industry, we’ve combined the best established processes and latest technology to make your payroll experience with us seamless and reliable. More...


1400 East 29th Street
Signal Hill, CA 90755

Phone: 562-595-0066
Fax: 562-595-0088

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