Payroll involves more than paying your employees on time. One essential role in your payroll is making proper deductions and remitting the same to the relevant authorities on time. Unfortunately, most small businesses don’t have the time and expertise to make accurate payroll deductions, leading to unnecessary fines and penalties.
Don’t crack your head over your payroll management. Instead, engage a professional firm to help streamline your payroll to avoid costly errors. If you are in Rancho Cucamonga, California, please contact Whyte & Associates, Inc. for payroll management services. The team has the experience and skills to create the payroll, make accurate deductions, and stay updated with any changes.
Many people confuse payroll tax with income tax. Most people know “income tax” is tax from individual or business income. However, the payroll tax is often unknown, and when non-tax-savvy people hear of it, they think it’s referring to income tax.
A payroll deduction is a predetermined amount taken from an employee’s paycheck and remitted to the relevant authority by the employer. The amount left after the payroll deductions is the net wage the employer pays the employee.
California has several payroll taxes — the employer pays some, while the employee pays the others. These taxes are computed using different rates.
These are the types of payroll deductions in California.
Payroll management can seem daunting, overwhelming, and challenging because of the different variables and the constantly changing tax laws. Unfortunately, ignorance of tax law is no bliss — when you make payroll errors, your business suffers hefty penalties, even if the mistakes were genuine. Don’t slow your business’ growth because of non-compliance penalties.