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What You Need To Know About Pre-Employment Background Checks:

 

Are you thinking of doing pre-employment background checks? If so, we have listed below a few options; however, they often need a candidate's consent. 

 

  • Credit Reports - Under the Fair Credit Reporting Act (FCRA), businesses must obtain an employee's written consent before seeking an employee's credit report. 
  • Criminal Records - For FBI checks, consult this link: FBI Services for Businesses
  • Lie Detector Tests - The Employee Polygraph Protection Act prohibits most private employers from using lie detector tests.
  • Medical Records - Under the Americans with Disabilities Act, employers cannot discriminate based on a physical or mental impairment or request an employee's medical records.
  • Bankruptcies - The Federal Bankruptcy Act prohibits employers from discriminating against applicants because they have filed for bankruptcy.
  • Military Service - Military service records may be released only under limited circumstances, and consent is generally required.
  • School Records - Under the Family Educational Rights and Privacy Act and similar state laws, educational records such as transcripts, recommendations and financial information are confidential and will not be released by the school without a student's consent.

 

 

10 Payroll Mistakes
You Want To Avoid

  

To avoid a painful audit, every business should have a system in place for processing its payroll. To help you create better payroll processes in your organization, we have listed below the top 10 payroll processing mistakes many companies make (possibly even yours).

  

Mistake #1. Bad Record-Keeping - Data entry mistakes can cost your company because the government can penalize you for them. The most frequent data entry error involves mismatching employees' names and Social Security numbers.

 

Mistake #2. Calculating Overtime Pay Incorrectly - You must follow specific legal guidelines when determining overtime compensation. If your 'exempt' employees are misclassified, you could be underpaying them.

 

Mistake #3. Classifying Workers Improperly

- Workers are generally classified as either employees or independent contractors. Getting this classification right is a big deal. Depending on the classification, how compensation gets reported to the IRS is different (Form W-2 vs. Form 1099).

 

Mistake #4. Failing To Ensure Confidentiality - Payroll information is legally confidential. Only senior managers and the payroll department should have access to that information.

 

Mistake #5. Failing To Send 1099s - If you pay an independent contractor at least $600 in any calendar year, you must send a 1099 by January 31 of the following year. Even some large organizations fail to send these out on time.

 

Mistake #6. Improper Handling of Garnishments - If employees are ordered by the court to pay levies, child support or wage garnishments, your company is required to send a portion of his or her check to the appropriate party. Failure to do so could lead to legal trouble.

 

Mistake #7. Inadequate Backup - What would happen if everyone in your payroll department got the flu simultaneously? The state, IRS and employees still require payment even if your payroll department employees are sick. Don't rely on just one person or computer system to understand and perform the functions of the payroll department.

 

Mistake #8. Missing Deadlines - If you make late payroll tax deposits, your company could incur large interest charges and fines. To avoid this, make sure you keep (and reference daily) a payroll calendar. Report everything to the appropriate government agencies in a timely fashion.

 

Mistake #9. Relying On Automation - While there are several useful software programs that will help you process payroll, you must still double-check all results. Additionally, if you provide incorrect information, your software program will not give you accurate results.

 

Mistake #10. Throwing Out Payroll Records - You must save all canceled checks, W-4 forms, timesheets and other records. Most states require that you hold them for 4-6 years.

 

Executive Summary: Common payroll processing errors are frequent. Failure to process payroll accurately or on time can lead to government penalties, fees and irate employees. To avoid these common pitfalls, stay on top of things and always have a back-up plan.

 

 

 

2-Year Price Guarantee

Are you tired of getting an annual price increase from your payroll service provider?

 

Find refuge with AGH's 2-year price lock with absolutely no long-term contract.

 

 

Note: Any advice contained in this material is not intended or written to be legal or tax advice, and cannot be relied upon as such, nor can it be used for the purpose of avoiding tax penalties that may be imposed by the IRS or states, or promoting, marketing or recommending to another party any transaction or matter addressed herein.

 

Now, more than ever, many business professionals like you are turning to us for expertise in accounting services, bookkeeping services, payroll taxes, business services, and of course, payroll processing. We thank you in advance for your business.

 

P.S. Please visit our Free Business Resource Center for special links to tax forms, tips and helpful websites.

 

 

 

 

 

AGH Employer Solutions | (316) 267-7231 | payrollinfo@aghlc.com | http://www.aghemployersolutions.com
 

 


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