Small Business Penalties
Starting a business? There's one person you need to put on the payroll.
According to Business Insider 1/3 of small businesses are fined for the same reason; payroll penalties. And the main problem is because most business owners do their payroll manually. According to a survey by godaddy.com 46% of small businesses don't have an accountant. And that oversight means they don't always comply with local, state and federal requirements. And the penalties are adding up.
In 2013 the government fined small businesses $4.5 billion, all because of payroll errors. Experts say it's easy to make financial mistakes in business. There are 15,000 tax codes in the country which can change frequently, and tax regulations vary from state to state. Plus companies need to factor in things such as varied salaries, commission and bonuses.
So if you want to avoid upsetting Uncle Sam hire someone who knows what they're doing and focus on other things. You need to spend money to make money, but you don't need to spend it on mistakes.