PAYROLL 101:

THE FACTS

ABOUT PAYROLL

COMPLIANCE

At minimum, there are annual changes to the laws

surrounding payroll. In addition to ongoing updates,

guidelines continue to shift in response to changes at

the local, state, and federal levels.

Often, these changes happen quickly, but regardless of

speed, there are immediate legal ramifications for your

business if you fail to comply.

Case Study: Hank & Payroll

Compliance

Consider Hank, the owner of a medium-sized IT

company.

Up until recent changes in payroll compliance, Hank was

having a relatively easy time navigating the system. He

knew how to withhold local, state, and federal taxes from

his employees’ wages and other earnings.

However, Hank was also struggling with some of the

other regulations around payroll compliance.

Case Study: Hank &

Payroll Compliance

For example, while Hank knew how important it was to

pay matching contributions to Medicare and Social

Security, as well as to submit regular payments, or

Federal Tax Deposits, to the right government entities,

he did not have all the answers.

Case Study: Hank &

Payroll Compliance

There are numerous other penalties in place that are

designed to encourage timely payment of withheld

payroll, social security tax, and employment tax.

Hank knew he was responsible for collecting and paying

these fees and was concerned that he might

unintentionally fail to do so.

Case Study: Hank &

Payroll Compliance

Payroll Penalties Can’t Touch

Me: Or Can They?

“Unlawful retention” refers to funds that are not

appropriately submitted to the government. This is the

basis for penalties, and payments on interest may be

ordered as well.

Depending on the number of people employed by the

business and the amount of misappropriated funds,

penalties can be steep – even 100 percent of the

amount owed.

Payroll Penalties Can’t

Touch Me: Or Can

They?

If the IRS can show that you knowingly and willfully

failed to properly submit funds, you may personally face

prosecution in federal court. In addition, your executives,

bookkeepers, and accountants may also be held

responsible.

Payroll Penalties Can’t

Touch Me: Or Can

They?

Your Solution: Professional

Payroll Services

Professional payroll services provide an effective tool to

help business owners like yourself commit to

compliance and avoid significant fines.

Balance Point’s Singularity Solution and Certified Payroll

Professionals are available to streamline payroll

management and to provide necessary information and

support.

Your Solution:

Professional Payroll

Services

Is Your Payroll Information

Safe and Secure?

In addition to maintaining payroll compliance, hiring

payroll experts will keep your information safe and

secure by encrypting, protecting, and backing up

transmitted data.

You should always look for services that are both

customizable and scalable, so solutions can grow in

conjunction with your demands and other changes.

Is Your Payroll

Information Safe and

Secure?