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Here’s What to Think About if You’re Expanding Your Business (And Therefore, Your Payroll)

CMMA Blog

If you’re planning to expand your business, one of your top priorities should be making sure you’re in position to classify and pay employees and independent contractors properly. This is especially important if you’re looking to hire people in any state without any red tape. Today, we’ll talk about what it takes to run payroll and when it’s helpful to engage a partner.

Doing Payroll Right

Since payroll is always a complex, high-stakes business, it’s worth investing anything required on the front end to make sure you do it right. Whether you train an in-house team or engage a partner, they need to be in position to classify correctly, stay on top of laws as they change, identify and respond to the different tax requirements, and have a system in place that allows the process to be simple, accurate, and fast. This helps you avoid future fines and legal battles.

Doing it right means doing the following:

  1. Learning local employment laws. This includes identifying regulations regarding working hours, holidays, sick pay, insurance, and more and having a (preferably automated) system in place to follow those rules.
  2. Onboarding workers. This includes collecting information such as name and date of birth as well as tax forms, background checks, benefit status, and work eligibility.
  3. Storing and securing data. Since you’re dealing people’s personally identifiable information (PII), you MUST have a way to secure that highly-sensitive data. The fines for mishandling data are serious, so you should be equally serious.
  4. Authorizing payments and ensuring your employees get paid accurately.  This includes identifying the appropriate deductions/taxes, keeping accurate records, paying on time in every location, sending out notifications, reporting as required to government institutions, etc.
  5. Having a system in place to identify and adjust to changes. You don’t always have time to wait weeks to adjust to new laws. Things evolve rapidly, so your system needs to be ready to evolve just as rapidly.
  6. Staying compliant. Laws are different from place to place and do change frequently, so your payroll management software solution should have systems in place to ensure  compliance wherever you operate.

Would Outsourcing Payroll Benefit Your Business?

Outsourcing payroll is especially valuable in certain situations. If a company needs to hire employees in multiple states, is growing rapidly, and/or needs to hire temporary workers frequently, engaging an Employer of Record (EOR) could be a game changer. An EOR mitigates compliance risks, increases payroll efficiency, and eases the administrative burdens of managing a workforce.

The Bottom Line

Payroll is one of the most complex and challenging aspects of operating a business and should be given appropriate attention by every business. When a company is growing, payroll is one of the most important aspects of business to have in good working order. The right people on your in-house team or the right partner are essential. If you think a partner would be beneficial to your business, reach out ! Relax: We got it.

The post Here’s What to Think About if You’re Expanding Your Business (And Therefore, Your Payroll) appeared first on PayReel .

To view our Partner blog, click here

👻 s Among Us (How to Prevent Payroll Fraud)

CMMA Blog

Payroll fraud is incredibly common. White collar crimes can be slippery because they aren’t always as obvious as someone swiping a stack of bills from the cash register. Some perpetrators likely don’t even think of themselves as thieves. They’re just “redirecting” funds they feel should be theirs anyway, “manipulating their payroll records ” to show they had extra vacation time, or clocking in when they’re not actually on duty . Those last two, by the way, were done by police officers and a firefighter, respectively.

What is Payroll Fraud? What Are The Stakes?

Payroll fraud is a misappropriation of funds that can happen a variety of ways. It could happen in the form of paying “ghost” employees or vendors. Such entities look legitimate but exist solely as a front. They may be workers who’ve quit, been fired, or died but are still receiving paychecks. They could be vendors that seemingly provide a service, but are in fact, nonexistent.

Another form of payroll fraud is when a worker clocks in when they’re not working or has someone clock in for them when they’re running late. Any form of falsifying hours falls under the umbrella of payroll fraud. Businesses lose billions in reported cases and small businesses are especially vulnerable. The duration of the schemes varies, but some businesses only find out after a worker has been fleecing it for years.

Resources to Prevent And Detect Payroll Fraud

Depending on a company’s setup, payroll fraud can sometimes be remarkably easy to pull off. Businesses with small payroll departments are most vulnerable, but it happens at the big companies and even feel-good nonprofits , too.

As usual, the best approach is prevention. Preventive measures discourage a would-be fraudster from trying something unsavory in the first place. They also make it easier for companies to catch perpetrators early on. Any resources a company puts toward preventative measures pales in comparison to the potential cost of lax procedures.

  1. Hire with discretion. Use the Social Security Administration website,  E-verify  or the IRS website  to confirm candidates’ identities. Continue the process by conducting a background check before hiring anyone as well as at regular intervals even after they’re on the team. Institute a process and apply the same level of scrutiny to every employee at every level.
  2. Separate duties. This applies especially to smaller businesses where one person fills multiple roles. If the same person makes entries, writes checks, and audits the books, they have too much power and can cause problems. Separating duties when possible and having a system of checks and balances (pun intended) in place goes a long way toward preventing fraudulent behaviors.
  3. Conduct audits. Both internal and external audits can identify fraudulent activities and each has benefits. When used in conjunction, these efforts can pay off big time by preventing issues or detecting them early. Quarterly reviews are a healthy standard practice for companies of all sizes.

Something Doesn’t Seem Right. Now what?

So let’s say you’ve taken preventive measures to minimize risks and something still doesn’t add up. If you see any red flags, it’s time to dig.

  1. Watch for ghosts, unusual behavior, and anything out of the ordinary. Twitter made headlines in 2022 attempting to identify if there were ghost employees sucking up payroll. This article identifies other red flags to watch out for. Hint: an employee who never takes a day off may not be as dedicated as you think.
  2. Provide an outlet for other employees to report suspicions. Company leaders can’t have their eyes on everything and it’s often the ones in the trenches that will be first to identify when something is amiss. Organizations with hotlines receive more tips to potential fraud than those without.
  3. Follow the 💰. Corruption always leaves a trail. If more than one employee uses the same bank account, unknown vendors are receiving checks, and unusual expenses are popping up, it’s worth looking into. If something seems like it could be amiss, investigate. If you have the resources to conduct a thorough internal investigation, that’s a good place to start. If not, hire someone to do it for you. And do it quietly so you don’t tip off the fraudster(s) before you have all the information you need.

Can Businesses Conduct Payroll Fraud?

We’ve talked about the workers, but companies can be guilty of a different kind of payroll fraud as well. Businesses that misclassify employees as independent contractors to avoid paying payroll tax and other costs associated with employees are also guilty of payroll fraud. It’s not the focus of this post, but we cover worker classification in depth. Contact us for a free risk assessment if you think your worker classification practices could use a second look.

Bottom Line

Now is a great time to identify vulnerabilities, and determine a course of action. Most payroll fraud, while incredibly frustrating and costly, is highly preventable. If you’d rather offload some of your payroll completely, call 303-526-4900 or email us. We minimize the time, effort, and risk associated with worker classification, payroll, and more.

The post 👻 s Among Us (How to Prevent Payroll Fraud) appeared first on PayReel .

To view our Partner blog, click here

What to Look For in a Video Production Payroll Service

CMMA Blog

A good payroll service is effective with even the most intricate, multifaceted, heavily-regulated industries around. Video production is up there with the toughest industries (it’s called a production for a reason)! Media managers oversee an incredible about of details for multiple teams of independent contractors and freelancers and, when their productions get big enough, it can be a huge relief to outsource some of the most tedious aspects of their work to partners who specialize in those aspects. Enter a video production payroll service that specializes in breaking the relentless cycle of onboarding, chasing signatures, coordinating invoices, verifying timekeeping and researching the ever-changing Department of Labor compliance guidelines. 

What to Look For in a Video Production Payroll Partner

Effortless Onboarding

One of the most tedious and high-stakes aspects of engaging independent contractors is the up front paperwork. There are endless ts to cross and is to dot. Add the ever-changing compliance requirements from the Department of Labor and it’s enough to justify serious attention to the subject. But productions require serious attention in so many other areas so a partner that can simplify onboarding can make seriously better for media production teams. A payroll service that you can confidently outsource all of onboarding clerical work to will be one that is proactively addressing all the compliance issues related to engaging video crews and/or production teams.

Online Timekeeping And Painless Payroll

Video productions are a world of their own! It’s not uncommon for one contractor to fulfill multiple roles with different pay rates. Tracking the rules around overtime, special holiday rates, and making sure team members get the breaks they are entitled to by law can be overwhelming. An online service that keeps track of those details is a game changer. Look for one that also allows workers to input their information and supervisors to approve everything in one place. In a world with so many complex details, automation is key. The best payroll service allows media managers and supervisors to stop chasing people for paperwork, invoices, and time sheets while minimizing hiring costs and optimizing production efficiency. 

The Bottom Line

If a service that automates and streamlines everything from the hiring process to payroll, PayReel’s digital platform is where it’s at. It is the perfect resource for your specific production needs. Find out how we can help you make your next production your smoothest yet.

The post What to Look For in a Video Production Payroll Service appeared first on PayReel .

To view our Partner blog, click here

Does Outsourcing Payroll Make Sense For Your Business?

CMMA Blog

For some businesses, getting out from under onboarding, vendor payment, classifying temporary employees, and other hiring/payroll demands makes all the difference. It can free them up to focus on the central aspects of their business.  Some of the top issues intertwined with payroll are overtime rules, federal and state compliance, insurance requirements for workers, benefit eligibility / management, and worker classification. Each of these issues is a world unto itself—with corresponding needs. It takes a solid foundation of knowledge to handle them accurately. Plus, anytime you’re dealing with payroll, the stakes are high! Businesses have an ethical obligation to pay people accurately and in a timely manner as well as a legal obligation to abide by the rules and regulations.

10 Questions to Help Determine if Hiring a Payroll Partner is Right For You

  1. Do you regularly hire independent contractors and/or temporary employees?
  2. Is the time required for said hiring and onboarding a stressor/hindrance to other aspects of your work?
  3. Does red tape ever cause frustrating bottlenecks?
  4. Has your company’s hiring process ever hindered you from being able to onboard a worker quickly enough to accomplish your goals?
  5. Have you ever made a bad hire because of a time crunch?
  6. Do you ever end up fighting payrolling fires?
  7. Would outsourcing payroll (and/or corresponding issues such as worker classification) free you up to focus on more profitable/interesting aspects of your business?
  8. Do concerns about compliance, worker classification, IRS audits, and workforce headcount keep you up at night?
  9. Have you ever lost favor with one of your best contractors by paying late?
  10. Do you have a reputation among contractors for paying late?

Not everyone needs a service to handle payroll. For those who do, though, it can be a game changer. If you answered yes to any of the questions above, it’s worth taking inventory and considering what kind of partners could change the way you do business.  A good partner makes classifying, onboarding, and paying freelancers painless, paperless, and personalized. Any company that needs quick/frequent access to qualified contractors or that wants to take all the risk out of dealing with the independent workforce could be a good candidate to outsource payroll. If that’s you, we’re ready to chat  about whether PayReel’s independent workforce engagement solutions make sense for you. It’s about time.

The post Does Outsourcing Payroll Make Sense For Your Business? appeared first on PayReel .

To view our Partner blog, click here

When a Payroll Company Steals (And What You Can Do About It)

CMMA Blog

When you trust someone to handle your company’s payroll, you better make sure that partner is worthy of your trust. We’ve seen everything from individuals siphoning small amounts over long periods of time to a payroll company diverting millions from employee accounts .

How to Protect Yourself From Payroll Fraud

How Do You Know You Can Trust a Payroll Company

Trusting a company to handle huge chunks of change (in tandem with your reputation) is no small thing. So why would employers process payroll through a third party?

While paying people may seem like a simple task, it can actually be very complicated, time-consuming, and laden with risks. In many cases, employers hand off payroll to third-party companies to avoid having to navigate the minefield of laws governing taxes, family leave, benefits and more. Outsourcing payroll is a way for companies to mitigate risks and offload a time-consuming, labor-intensive task to a company that specializes in that area. It’s like having a whole HR team without having to hire an internal HR team.

How Can Large Chunks of Change Just Disappear?

When businesses outsource payroll, they send a sum to cover all expenses (including payroll and taxes) to the payroll company who then distributes the paychecks.

A simple typo could lead to an employee receiving extra pay. In that case, a payroll company has the authority to retroactively cancel the check or even withdraw the overage from the account directly. It seems in the case we linked above, the company not only withdrew funds specified for legitimate paychecks, but went further by withdrawing higher amounts than the original paychecks. The result: $35 million in missing funds. It’s an egregious scandal. The offending company shuttered its doors and scrubbed social media accounts, leaving companies scrambling to pay their employees.

Yikes. So How do I Find a Reputable Company?

Good question. Employers trust payroll companies to manage huge sums of money. Even small problems can have cascading effects. If the money doesn’t make it into an employee’s account or shows up late, said employee may face overdraft/late fees. From there, the frustration and time to fix the problems only build. What’s worse: even if they’ve hired a payroll company, employers can still be held responsible for payroll issues. So yeah, you could say it’s pretty important to get it right. It’s worth doing your due diligence to make sure you’re dealing with a legitimate company.

Factors to Consider When Choosing a Payroll Partner

Longevity: A company that’s been around for 30 years without scandal is a good sign. Chances are they’re not running a long game of doing the hard work to build a solid reputation and systems that work just to defraud people later.

Security measures: Payroll companies have HUGE amounts of personally identifiable information (PII) running through their systems daily. With that level of sensitive info, they must have rock solid security measures in place. Make sure your partner:

  • Encrypts everything at multiple levels
  • Treats all sensitive information as Personally Identifiable Information (PII) and in accordance with HIPAA recommendations
  • Doesn’t allow any sensitive data to go offshore
  • Has regular third-party security checks and annual penetration tests
  • Has a redundancy system that backs up and saves data if something goes wrong

Insurance/guarantees: Even once you’ve done the work of ensuring the above, you still want to find out exactly who is on the hook if a mistake does happen. If a payroll company doesn’t submit payroll taxes on time, for example, the company could be held responsible. You need some assurance that if the payroll company messes something up, it will also clean it up.

Ask questions: Corrupt behaviors tend to start with warning signs. If you think something may be awry, start asking questions or hire someone to look into it.

Bottom Line

Most of this kind of fraud, while incredibly frustrating and costly, is highly preventable. As usual, the best approach for protecting yourself is preventing problems in the first place. Any cost or perceived hassle of doing your research and hiring a reputable company (👋 ) in the first place pales in comparison to the potential cost of lax research. You can rely on PayReel  to assume the responsibilities and get you back to the business at hand. We make sure everyone gets paid quickly and easily and have Client Relationship Managers on call around the clock to answer your questions. Call us at 303-526-4900 or email us if a payroll partner would benefit you.

The post When a Payroll Company Steals (And What You Can Do About It) appeared first on PayReel .

To view our Partner blog, click here

Customizable Contractor Payroll And Benefits

CMMA Blog

Many businesses can outsource an entire department and save mountains of paperwork by partnering with a company that specializes in online payroll and HR administration. Such a partner facilitates employee and contractor payroll while also tracking and managing benefits and taxes. While it’s a natural fit for small businesses, large companies often engage payroll partners, too since these responsibilities are so specialized and high stakes. Companies of all sizes may decide to leave these details to the experts. Nobody wants to deal with the IRS more than absolutely necessary!

What to Look For With Employee and Contractor Payroll Partner

  1. Online (paperless) onboarding
  2. Ability to automate payroll for employees and contractors
  3. Customizable payroll that can fit your company’s needs
  4. Ability to set different wages and roles
  5. Ability to track time online
  6. Ability to keep up with state-specific laws (especially if you have workers in more than one state)
  7. Customizable reports
  8. Benefits administration
  9. Compliance (taxes, overtime, payroll, labor laws, and more)
  10. Ability to integrate with your company’s existing systems

Is an Employee and Contractor Payroll Partner Right For You?

A payroll partner is best for businesses that want to automate payroll and/or outsource some HR responsibilities. PayReel is a full-service payroll and benefits platform and is customizable to individual businesses’ needs. If you’re interested in hearing about a customized solution for your situation, contact our team !

The post Customizable Contractor Payroll And Benefits appeared first on PayReel .

To view our Partner blog, click here