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Common payroll pitfalls and how to avoid them

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company checkYou can pay now or pay later, warned Tracie Sawade, a system consultant for Ultimate Software, who walked attendees at the American Payroll Asso­­ci­­a­­tion’s 32nd Annual Congress through common payroll problems and offered fixes and solutions.

Pitfall No. 1: Voids. A void and a reversal aren’t the same thing, Sawade pointed out. With voids the money comes back; with reversals, you’re moving the money around. Sawade recounted her worst nightmare of opening a desk drawer and finding a stack of voided checks. The problems: Voided checks that aren’t handled properly could impact quarter-end state unemployment insurance taxes by showing negative wages for an employee who terminated, and year-end reconciliations leading to a Form W-2c if those voided checks cross a calendar year. Further, voids can result in incorrect postings to employees’ earnings records, general ledger entries and bank reconciliations.

THE FIX: Sawade’s best...(register to read more)

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