Before you can properly run payroll for your new hire, you need a few key pieces of information. Pay rate, pay frequency, cost center assignment, personnel information, and preferred method of payment are all obvious components of running payroll, but what about the classification of your relationship with the person performing work?
As a payroll software company, at AAB Payroll we take security very seriously. Social security numbers, addresses, bank account information, and wages are just some of the data that can be stored. If by any chance this information gets in the wrong hands, your company’s reputation will be at risk, and so will your employees’ personal information.
The world of tax law and payroll regulations is a complicated one. Managing pay periods, calculating overtime, and staying current on the latest procedures is no easy task. One critical component of tax law regulation your business needs to comply to is the lookback period.
It is important to remember that an independent contractor is a worker who does not work for your company, but is on a contract basis instead. Make sure you have correctly classified your workers before considering paying them as a contractor.