Frequent Payroll Forms Reporting Errors

Small business software can actually help eliminate the need at least for some of those cabinets simply because the software will digitize your payroll records.

Going a step further, this software that is used for payroll can eliminate the need for paper payroll records. Manufacturers of small business software understand that every small business is a little different from the next which is why the software is so customizable. Mistakes on payroll reporting forms can be time consuming and costly. The social security number and employee’s name must match in SSA’s file. All paper forms must meet IRS regulations, red ink forms must be scannable and the forms must be for the correct reporting tax year.

The other important reporting forms with frequent errors are 943 and .Some mistakes pertaining to these forms are again incorrect Medicare/Social Security wages and box 13 as pertaining to third party sick pay also failing to file corrected forms and filing duplicate 941 forms. As with W2 forms separately report Medicare and Social Security wages but do not report amounts not covered by Social Security/Medicare wages such as employee earnings exceeding the yearly taxable amount for Social Security wages and payments to an independent contractor shown as wages.

Do not file duplicate 941 forms. Wage/tax totals, company and employee information are taken directly from the software when the reporting forms are generated.