Payroll Software by Medlin is an easy to use software tool to make it as easy as possible for you to handle your payroll processing. By managing your data,
handling the calculations, and generating reports, your payroll processing time is measured in minutes instead of hours.
On this page are items which come up often. Even if there is nothing new to you on this page, revisiting these
items from time to time, at least once a year is suggested. If you have any concerns about the payroll regulations which apply to you, contact a local payroll expert who can give specific advice for your situation!
Ask questions and get answers BEFORE you start and before implementing somethign new, rather than at the end of year when you have to prepare the year end reports.
Clutter your desk. Print or obtain a copy of the current IRS Employer's Tax Guide, IRS Publication 15,
and a copy of your current state and local employer/payroll guide books, and keep then on your desk. In January, review the "What's New?" chapter discussing any changes from the previous year. These booklets do
a good job explaining the payroll process as simply as possible, and should be the first place you turn to for answers.
Tax agency web sites are your friend. Use any search engine to locate yours. Try searching for "(your
state name here) payroll tax agency". Using California as an example, you will be directed to
http://www.edd.ca.gov/payroll_taxes/ Look for email newsletters you can sign up for, news pages specifically for
employers, and any other useful information the agency makes available online.
Zero can be correct! If you have an employee who is earning near minimum wage, or works part time, their federal and state withholding
calculation may really be zero. If you are concerned, perform a manual calculation (pen and paper) using the apporporate guide book, and compare to what Medlin Payroll Software calculates.
You will find the calculations in Meldin Payroll Software are accurate.
Paper, paper, paper. Print and keep copies of all government tax forms (and print receipts for all data filed electronically). Take a few moments to review the federal and state record retention
requirements. You will find you have to keep paper records for at least four years - time cards/sheets, tax forms, W-4 forms, I-9 forms, and so
on. Just because you can scan and/or store these items electronically does not mean you can avoid keeping paper records. Paper records do not get lost when
you switch computers, have a power outage, or take your computer to a service center.
Backup, backup, and backup again. The most common data loss scenario we hear? Taking a computer to a service center for service or to
transfer data to a new computer. The service center gives the client some sort of "backup". The "backup" is not really a backup a program can restore from,
it is either a copy of files or some sort of image the service center creates. The "service" center is then charges more or (worse) is unwilling or
unable to help undo whatever "backup" they created.
Payroll Software by Medlin has built in backup and restore functions - use them! When you use a program's built in backup and restore functions, you can be certain
you have a good backup, since the program's author knows what data to backup and restore. Also of note, make sure you have a
rotation of removable backup media, not just one backup media you use over and over. Time
spent backing up is cheap compared to time spent manually recreating lost data.
Backup and paper again! Keep a second set of backup media and a second set of paper records in
a separate location. Why? Things happen unexpectedly. If something happens at the business location, there is an alternate set of data to use. Be prepared
for a natural disaster, accident, or even a disgruntled employee destroying data. Our new (2020) encrypred secure online backup feature is a good start.
Get in compliance / Keep in compliance. We often hear situations where an employer is clearly not in compliance with
regulations. Sometimes it is a lack of knowledge, sometimes it is because "it was always done this way", sometimes just because not yet caught and
penalized. Compliance penalties can be expensive.
Compliance - Pay Frequency. There are rules about how often and when you must pay employees. Your state's
employer guide book will have the details.
Compliance - Owners who are also employees. REMEMBER, owners who are also receiving a paycheck (an employee) MUST be paid using the same rules
as any other employee. This includes at least minimum wage for all hours worked, overtime as required, and paid every payday. Owner/emplyoees also have to
be concerned with 'reasonable wage' requirements, making certain the owner/employee is paid a reasonable wage for the work they perform.
Compliance - Pay Stubs/Receipts. Most states have regulations about providing pay stubs/receipts to employees.
Some states are very detailed about the contents of the stub. In California, for example, not providing a proper pay receipt can cost you $100
per incorrect or missing receipt.
Compliance - Good Deeds. Do what you are required to do, nothing more, nothing less. Employers are subject to a large number or regulations.
Be careful not to go 'beyond' those regulations, at least not without understanding the consequences. For instance, before making any deduction from a paycheck, even if the employee requests it, make certain it is allowed.
Compliance - W-4 Forms. If an employee asks you to withhold more or less taxes, remember
your requirement/obligation is to withhold based only on the last valid W-4 form (and/or state specific allowance form) the employee has given you.
A request in any other form is not valid. It is good practice to collect both a federal W-4 form, and the state (if applicable) equivelant, and not to reply on the federal form to calculate state withholding.