Your Guide to Payroll Compliance Updates

Posted by Florida Resource Management on December 1, 2023

Business owners know how crucial it is to remain aware of changes or updates to U.S. tax law. Compliance failures are enough to cripple a small firm, and hinder even the largest companies.

Therefore, we at Florida Resource Management take it upon ourselves to make sure your business stays “in between the lines” when it comes to payroll, taxes, and other regulatory matters. With that in mind, here’s a quick guide on what you should know regarding compliance issues in 2023. As always, if you have questions, after reading this, then contact us for expert guidance.

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Important Payroll Legislation Every Business Owner Should Know

We should approach payroll compliance by availing ourselves of the important landmark legislative acts, and what they require from businesses. This is a brief sketch of the relevant federal laws for anyone conducting business in the U.S.

  1. Fair Labor Standards Acts (FLSA) - governs minimum wage rates, overtime pay, child labor laws, and other record-keeping tasks
  2. Federal Insurance Contributions Act (FICA) - the payroll tax that funds both Social Security and Medicare
  3. Equal Pay Act (EPA) - prevents wage discrimination because of sex whenever there are similar jobs in the same workplace
  4. Federal Unemployment Tax Act (FUTA) - offers laborers temporary income assistance if they lose their employment through no fault of their own

There are several others, including the various international laws for businesses operating overseas, but you should at least possess a working knowledge of these four. It’s well worth your time to research some of their provisions and consult with experts to learn more.

Payroll Compliance - Taxes

Tax compliance is a tremendous hurdle for some businesses, unless you have a well-trained staff to handle the following.

  • Wage calculation for employees (including overtime accruals)
  • Withholding the correct amount for payroll taxes
  • Filing returns in every applicable jurisdiction
  • Matching the employee’s tax responsibility for FICA

Avoid Common Payroll Mistakes

What are the most typical payroll mistakes?

  • Misclassifying employees versus contractors
  • Misclassifying various tax exemptions
  • Not meeting minimum thresholds to cover workers’ compensation
  • Failure to comply with Equal Pay Act provisions
  • Poor management of employee time cards; leading to lost wages

Consequences of Non-Compliance?

What happens if you make payroll mistakes?

Non-compliance issues can harm both employers and employees substantially. It could cause someone losing their rightfully earned wages, forcing your accounting staff to devote extra time to payroll corrections and re-printing paychecks. This can ruin workplace morale and put companies at risk for lawsuits and other disputes.

Need Help with Compliance? Try Florida Resource Management

Since this is such a complex topic, and requires the utmost due diligence, we recommend partnering with a professional for a better chance of avoiding potential non-compliances. Florida Resource Management will keep you in line with every payroll regulation and business law requirement.

Want to know more about us and master every component of payroll management?

Contact us anytime by calling 941-343-6160.

Contact Florida Resources Management

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