--- title: Common Errors Made in Payrolling That Employers of Record Can Eliminate description: Avoid common mistakes that occur when processing payroll in-house.Innovative Employee Solutions, a leading employer of record, can help. --- [Skip to content](https://blog.innovativeemployeesolutions.com/ies-blog-nb-24/blog/compliance/common-errors-made-payrolling-employers-record-can-eliminate#main-content) [![IES Logo_Full-ColorNavy](https://blog.innovativeemployeesolutions.com/hs-fs/hubfs/IES%20Logo_Full-ColorNavy.png?width=300&height=140&name=IES%20Logo_Full-ColorNavy.png)](https://www.innovativeemployeesolutions.com/) - [Innovative Employee Solutions Blog](https://blog.innovativeemployeesolutions.com) - [Innovative Employee Solutions Blog](https://blog.innovativeemployeesolutions.com) [mailto:?subject=Check%20out%20https://blog.innovativeemployeesolutions.com/ies-blog-nb-24/blog/compliance/common-errors-made-payrolling-employers-record-can-eliminate](mailto:?subject=Check%20out%20https://blog.innovativeemployeesolutions.com/ies-blog-nb-24/blog/compliance/common-errors-made-payrolling-employers-record-can-eliminate) June 17, 2016 # Common Errors Made in Payrolling That Employers of Record Can Eliminate Written by: [Innovative Employee Solutions](https://blog.innovativeemployeesolutions.com/ies-blog-nb-24/author/innovativeemployeesolutions) As a small business owner, running payroll in-house may seem like a logical and time-saving move. However, considering the tax regulations, legal considerations, and lengthy amount of time needed to complete the process, tackling payroll yourself may not be in your best interest. - ## Common Mistakes When carrying out an essential business function that’s not your area of expertise, mistakes happen. You may not understand overtime and other labor laws in your state. Miscalculations and litigation from employees wrongly classified as exempt can be costly. Perhaps you misclassify employees as independent contractors. You’ll face steep tax bills and penalties down the road. You might withhold incorrect federal, state, or local taxes for your employees or be late filing or paying them. This results in interest charges and penalty payments.   Perhaps you don’t understand pre-tax and post-tax earnings and deductions. It’s important you properly handle garnishments, levies, child support, or other court orders regarding payment to third parties. You might forget to send 1099s to independent contractors earning $600 or more in compensation during a calendar year. If you fail to do so by January 31 of the following year, you’ll face tax and legal issues. Perhaps you mismatch names and social security numbers or keep inaccurate records of employees’ hours. You may face government penalties down the road. You might forget to save payroll records. Time sheets, canceled checks, W-4s and other forms need to be held four to six years, depending on state law. - ## IES Solution You don’t have time to learn all payroll laws and stay updated with pertinent changes. Because you’re busy during the day performing core functions, you may be handling payroll after-hours rather than spending time with your family or friends. Working with the trained [payroll professionals](https://www.innovativeemployeesolutions.com/human-resources-outsourcing/payroll-service-providers/) at IES as your Employer of Record gives you access to tax and compliance resources that help eliminate common errors. We take on your workers’ compensation, benefits, time and attendance, ACA compliance requirements and more to save you time and reduce your risk of expensive payroll errors. We customize our payroll solutions to your needs, providing you peace of mind. Avoid common mistakes that occur when processing payroll in-house. [Contact Innovative Employee Solutions](https://www.innovativeemployeesolutions.com/cloud-payrolling-companies/) for all your outsourcing needs today! Tag(s): [payrolling](https://blog.innovativeemployeesolutions.com/ies-blog-nb-24/tag/payrolling) , [Benefits of Outsourcing Payroll](https://blog.innovativeemployeesolutions.com/ies-blog-nb-24/tag/benefits-of-outsourcing-payroll) , [Common Errors Made in Payrolling That Employers of](https://blog.innovativeemployeesolutions.com/ies-blog-nb-24/tag/common-errors-made-in-payrolling-that-employers-of) , [Compliance](https://blog.innovativeemployeesolutions.com/ies-blog-nb-24/tag/compliance) , [Innovative Employee Solutions](https://blog.innovativeemployeesolutions.com/ies-blog-nb-24/tag/innovative-employee-solutions) , [Employer of Record](https://blog.innovativeemployeesolutions.com/ies-blog-nb-24/tag/employer-of-record) , [Employer of Record Services](https://blog.innovativeemployeesolutions.com/ies-blog-nb-24/tag/employer-of-record-services) ## [Innovative Employee Solutions](https://blog.innovativeemployeesolutions.com/ies-blog-nb-24/author/innovativeemployeesolutions) ## Other posts you might be interested in View All Posts ## [payrolling 2 min read | April 6, 2016 Lower Your Overall Contingent Workforce Costs by Using Payrolling Read More](https://blog.innovativeemployeesolutions.com/ies-blog-nb-24/blog/employer-of-record/lower-overall-contingent-workforce-costs-using-payrolling) ## [payrolling 3 min read | September 14, 2016 5 Payrolling Tasks You Don’t Need to Do! (Have Someone Else Do Them Instead) Read More](https://blog.innovativeemployeesolutions.com/ies-blog-nb-24/blog/human-resource-management/5-payrolling-tasks-dont-need-someone-else-instead) ## [payrolling 2 min read | December 30, 2016 What Are the Top 5 Reasons Companies Use Employers of Record? Read More](https://blog.innovativeemployeesolutions.com/ies-blog-nb-24/blog/employer-of-record/top-5-reasons-companies-use-employers-record) ## Subscribe to email updates Additional content around the benefits of subscribing to this blog feed. - [Innovative Employee Solutions Blog](https://blog.innovativeemployeesolutions.com) © 2014-2026 Innovative Employee Solutions. All rights reserved. [CSR policy](https://www.innovativeemployeesolutions.com/corporate-social-responsibility-policy/) [Diversity & Inclusion](https://www.innovativeemployeesolutions.com/ies-diversity-inclusion-policy/) [Privacy policies](https://www.innovativeemployeesolutions.com/privacy-policies/) ```json { "@context" : "https://schema.org", "@type" : "BlogPosting", "author" : { "@type" : "Person", "name" : "Innovative Employee Solutions", "url" : "https://blog.innovativeemployeesolutions.com/ies-blog-nb-24/author/innovativeemployeesolutions" }, "dateModified" : "2024-04-24T19:07:18.210Z", "datePublished" : "2016-06-17T14:33:18.000Z", "headline" : "Common Errors Made in Payrolling That Employers of Record Can Eliminate", "mainEntityOfPage" : { "@id" : "https://blog.innovativeemployeesolutions.com/ies-blog-nb-24/blog/compliance/common-errors-made-payrolling-employers-record-can-eliminate", "@type" : "WebPage" }, "publisher" : { "@type" : "Organization", "logo" : { "@type" : "ImageObject", "url" : "https://blog.innovativeemployeesolutions.com/hubfs/Signature-TaglineKarla.png" }, "name" : "Innovative Employee Solutions" } } ```