Payroll Mistakes You Need To Avoid In 2015

Payroll is so much more than just making sure your employees receive a paycheck on time. It’s a whole section of human resources that includes time worked, time requested off, tax information and important financial data. This helps determine the overall health of your business.

So, it’s no surprise that payroll is a time-sucking process that is prone to mistakes. Payroll software can help you avoid some of these mistakes, but it’s still on small business owners to make sure everything is synced up and compliant.

Accounting and payroll software company Xero offers some advice on common payroll mistakes to avoid this year.

Get employee classification correct

Your workers are either classified as employees or as independent contractors and it’s very important you get that classification right. The difference is important come tax season.

Contractors receive Form 1099, which very rarely has anything taken out for federal taxes. Employees fill out a W2 and have — typically — money already taken out for taxes.

For employees that were mistakenly classified this past year, you can use the Voluntary Classification Settlement Program. This allows eligible employers to voluntarily reclassify workers as employees and be compliant by paying 10 percent of the tax liability.

Forget to issue 1099s

If you have contractors, or freelancers, doing work for you, it’s important you send them out a 1099 Form come tax season. Even if the person only worked once, it’s always a good idea. The IRS requires you send out a 1099 to any contractor who provides $600 or more in services.

Companies that don’t do this are subject to penalties.

Don’t forget about employee expenses

Some governments need these to be taken into account as taxable benefits. Recent changes in health care law have resulted in the government taxing your employees’ fringe benefits. For the most part, they are included in total gross income.

Not all fringe benefits are taxed, but many are. There are the really small benefits, which is around $75 in benefits, for things like personal use of a photocopier or buying coffee donuts or soft drinks for the office. It’s called De Minimis Fringe Benefits and they typically are overlooked and it’s not a big deal.

Working condition benefits, such as employee lunches, traditional prizes and awards or regular snacks and food provided must be reported as income. Some employers also give away gym memberships or use of a company car. This is all considered income in the eyes of the IRS and must be reported.

Failing to timely deposit withheld taxes

Businesses are required to deposit taxes on at least a monthly basis. And when taxes reach a certain amount, they must be deposited the next business day. Penalties can range from 2- to 15-percent for noncompliance, so make sure to stay on top of it.

The same goes for depositing taxes on stocks and the exercising of stock options.

Be careful on employee travel

For the most part, employee travel isn’t considered taxable income. But sometimes an employee has a long-term travel assignment that requires him or her to work from a site that isn’t the permanent work site for a year. This could be considered part of the employee’s income. Talk with a tax expert on this to make sure.

Where to Sell Your Stuff to Make Money

Where to Sell Your Stuff to Make MoneyDo you want some extra cash in your pocket as soon as tomorrow? If so, then consider selling your “useless” junk! Chances are good that you’ve got dozens of valuable items in your home right now that you’ve completely forgotten about. Instead of letting them sit there and collect dust, why not sell them on sites like Craigslist or eBay and make some extra cash? Let’s take a look at some places where you can sell your stuff to make extra money.

  1. Craigslist

Most of you have probably heard of Craigslist before. If you haven’t, here’s what to expect: it’s a classified advertisements website where you can post ads on just about anything – housing, jobs, services, etc. The ‘for sale’ section of the website is where you can list the items you’re selling. Just remember that unlike eBay, the transaction does not take place online. Instead, you arrange to meet with the buyer in person for the transaction.

One of the prime advantages to selling stuff on Craigslist is that you get paid quickly and in cash. Rather than wait for funds to clear in your PayPal account, you’ll receive your money immediately. This comes in handy if you’re in a hurry to pay bills. The drawback to Craigslist is that you never truly know who you’re meeting until you meet them.

This does carry a degree of risk since you don’t really know the intentions of the person you’re meeting. But as long as you meet the buyer in a public place, preferably with another person, there’s no reason why Craigslist can’t be a safe and reliable place to make money selling your stuff.

  1. eBay

As the world’s largest e-commerce website, you should have no problem selling your old or unused stuff on eBay. Selling on eBay is relatively straightforward: post an image of the item you’re selling, along with a description and price, and wait for a sale. There are two distinct selling formats you can follow on eBay:

  • Buy It Now: As the name implies, this format allows you to set your item to a specific price. So if you price the item at $79.99, then this is what you’ll get for it. The only exception is when use the ‘or best offer’ option which basically allows potential buyers to A) Purchase the item at your buy it now price, or B) Offer you a price that they’re willing to pay.
  • Auction: When you put an item up for auction, there’s no guarantee that you’ll sell it for a specific price. Instead, the amount you sell it for will depend on how many people are interested in It.

The benefit to selling on eBay is clear: you’re more likely to find a buyer. The main downside is that you’ll need to wait for the funds to clear in your PayPal account before you’re able to access them.

  1. Backpage.com

Backpage.com is a classified advertisements site that’s very similar to Craigslist. There’s basically no difference between the two except that Backpage.com offers a sleeker interface and navigation. You’re also less likely to receive spam emails when posting on backpage.com.

  1. Consignment Shops

When most people think of the word “Consignment”, they automatically picture an outdated idea that doesn’t work. But the truth is that selling your stuff at consignment shops can be an excellent way to supplement your income. Basically, it works like this: you choose what items you want to sell, give them to the shop owner, and you both share the profits. Pretty neat, right?

Generally you’ll both come up with a percentage beforehand that you believe is fair for everyone. In most cases, you’ll keep the bulk of the purchase. So if your item sells for $100, you might receive $75 or $80 and the shop owner will keep $20 or $25. The best part is that you’ve done nothing. This option is great because it’s “passive” meaning, once you give the shop owner your items, the only time you’ll need to show up again is to collect your checks! Check for local consignment shops in your area using Google.

Ready to Get Started?

Selling unused stuff is simple, fun, and effective way to blow up your bank account. The process is simple: just find what you don’t need (or what you no longer use), put it up for sale, and collect your profits! It really is that easy. Start today so that you can finally catch up on your bills, have more money to splurge, and save up for your future.

Borrowing Made Simple

As more and more businesses go online, the Internet has created many new and useful options for borrowers. An increasing number of lenders serving the United States of America offer lending services that are easily accessed online. For those who are looking for fast access to cash, online lenders provide a rapid, convenient way to secure a loan.

Borrowing in the digital age has huge advantages to those unfamiliar with small dollar loans. While lenders can offer their services online, the internet also gives borrowers the opportunity do a bit of homework to acquaint themselves with the loan industry. When technical terminology obscures the meaning behind terms, borrowers can easily find online glossaries and informative articles clarifying unusual words or topics.

Responsible lending practices compel online lenders to cut confusing jargon down to a minimum. Trustworthy lenders like MoneyKey don’t want to complicate matters or confuse their customers, so they take pains to make sure their terms and rates are clear. Representatives from MoneyKey are available via phone, email or online chat to go over any issues potential borrowers have with their services. If borrowers ever speak to a representative who fails to answer questions or to clarify terms, then they don’t act on behalf of MoneyKey and should not be trusted.

One of the many questions one can ask regarding lending practices is the types of loans that are available. A single-pay loan is a small amount of money that is to be repaid in one lump sum at an agreed upon time in the future, that usually coincides with the borrower’s next paycheck. For those whose situation restricts them from paying back the entirety of the loan in one lump sum, flex-pay installment loans can be arranged, allowing borrowers to repay their loan in scheduled increments. For more information on how a flex-pay installment loan plan might work for you, head to MoneyKey.com/flexpay-installment-loans-online.php. MoneyKey is a trusted, ethical, and efficient organization that can dispel any confusions about the process and, if you qualify for a loan, get you money extremely quickly. MoneyKey also provides lines of credit, which are ideal when cash needs to be accessed over a longer term; borrowers can withdraw money against their principal loan as necessary, paying a minimum monthly payment.

Securing a loan is simple when the application is all online. Filling out an application is incredibly easy, and lenders can process these requests very quickly. In most cases, loans are approved within 20 minutes after the borrower applies and funds can be deposited into a checking account within the next business day. Borrowers can also rest assured their personal data is fully protected when their lender adopts advanced security provisions to safeguard information. Firewall, encryption, and Verified Site Certificates should all be employed to protect borrowers from fraud.

As lenders have embraced online lending practices, the internet offers great simplicity, speed, and convenience for individuals looking for cash. With a few simple clicks, people in desperate need of extra money can obtain a manageable loan that can relieve financial stress.

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