Payroll and Accounts Payable should talk early and often. So say Billy Meyerkorth, payroll manager at American Century Investments, and Jodi Parsons, payroll and accounts payable manager at Lifespace Communities.
Meyerkorth and Parsons led attendees at the American Payroll Association’s annual Congress in a discussion on how these two departments have more in common than they think.
Worker status issues
It is acceptable for a worker to be an employee and an independent contractor at the same time, Meyerkorth said, but you should be cautious about dual status, since it’s usually a red flag for the IRS. The key, he added, is for Payroll to know whom Accounts Payable is paying and vice versa. What to avoid: dual payments to the same person.
To check for dual status, Parsons advised checking for matches in names, addresses, Taxpayer Identification Numbers and bank accounts. If a match or near-match arises, you’ll have to do som...(register to read more)