Ohio Restaurant Magazine, Spring 2015 - page 18

Spring 2015 Issue
Recent legislation and regulatory changes make it more
important than ever to keep payroll top of mind. Although
payroll is complex, it doesn’t have to be a source of constant
stress. Take these steps to stay on top of your payroll program
and keep payroll headaches at bay.
Note important payroll deadlines.
Timeliness is vital for
employee relations, as well as deadlines for depositing payroll
taxes to federal, state and local agencies. Late tax deposits can
result in penalties and interest charges.
Classify employees appropriately.
Classify your employees
into categories such as temporary employees, consultants and
independent contractors to ensure your payroll reporting is
accurate for tax purposes. That will help you avoid common
pitfalls if your business undergoes a payroll audit.
Report and calculate overtime pay.
An incorrect classification
could be costly if your restaurant is audited. According to the
Department of Labor, litigation is increasing over “non-exempt”
employees treated as “exempt” who didn’t receive overtime pay.
Take time to review employees’ exempt and non-exempt status
to save money in the long run.
Double check data entries.
An incorrectly entered hourly wage
and the wrong number of employee hours per pay period can
cost operators millions of dollars
annually. To avoid these mistakes, ask your processor if a
“double check” is part of its process for payroll completion. If
it’s not, ask to add it.
Save payroll records.
Your business must maintain a
comprehensive record for each employee, including time
sheets, cancelled checks and W-4 forms. Keep them in a
safe and accessible location for four to six years. Failure to
do so could lead to criminal penalties and/or civil actions.
Remember, the Wage and Hour Division of the Department of
Labor must be able to inspect your records within 72 hours of
notifying you.
If you ensure your in-house or outsourced payroll processor
follows efficient, accurate processing procedures, you can
improve government compliance and employee relations.
This content was provided by Heartland Payment Systems,
a Strategic Partner of the Ohio Restaurant Association and
provider of secure payment processing, payroll solutions and
marketing solutions.
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