Indiana Employers Should Avoid Top 10 Payroll Mistakes

This is very valuable information from regarding the most common payroll mistakes:

Any business with employees must have a system in place for handling payroll activities, which includes paying employees, filing all necessary government forms, and paying taxes promptly. There are numerous aspects to payroll, particularly in larger companies with full-time and part-time employees plus independent contractors. Here are 10 of the most common payroll mistakes to be aware of:

1. Missing deadlines

2. Misclassifying workers

3. Neglecting to send 1099s

4. Poor record keeping and data entry

5. Not properly handling garnishments, levies, or child support

6. Miscalculating overtime pay

7. Leaving too much responsibility to the software program

8. Not saving payroll records

9. Not maintaining confidentiality

10. Not having adequate backup

Additionally, those looking for a tangible resource regarding wage and hour laws in Indiana can benefit from the Indiana Chamber’s Wage & Hour Guide, and have this important information at your fingertips.

Build a Better Business

Building a Business

In today’s poor economic environment, businesses all across the state (and beyond) are seeking ways to cut costs. One department where your company can control costs is employee benefits.

Turn to the Indiana Chamber’s publication, Building a Business in Indiana (written by a team of attorneys from the Indianapolis law firm Bose McKinney & Evans LLP), for the guidance you’re looking for. Here are just a few ideas, as outlined in Chapter 6: "How Can I Keep My Benefit Costs Under Control?"

Consider implementing a wellness program. When employees are healthier, health care costs are lowered. Wellness programs typically are most successful when coupled with financial incentives.

Reduce annual and lifetime plan limits. Federal law does not prevent a health plan from imposing annual and lifetime benefit maximums. Employers seeking to minimize their financial exposure to unanticipated health care claims should reduce benefit maximums prior to the receipt of significant health claims from a single individual.

Offer different benefits for participants and dependents. Both the ADA and HIPAA explicitly permit health plans to provide different levels of benefits for participants and dependents. For example, it would not violate federal law for a health plan to have a $100,000 benefit cap for employees but only a $50,000 benefit cap for employee dependents.

Three Mistakes to Avoid in a Sluggish Economy


1. Hiring too quickly. Poorly chosen new hires cost your company both time and money. Consider trying out new people as contractors before hiring them as regular employees. See Chapter 7: Independent Contractors and Temporary/Part-Time Employees

2. Just paying everyone a salary. Who wants to deal with timecards and calculating overtime pay? Under law, certain employees who don’t qualify for an exemption are entitled to overtime pay, and can’t agree to forego overtime pay in exchange for receiving a salary. Additionally, hourly rates of skilled workers are often comparable with those of full-time staff in the same position. See Chapter 14: Wage and Hour Requirements

3. Thinking you don’t need to spend the time and money on harassment training for all staff. A study estimated that it is 34 times more expensive for employers to ignore workplace harassment than it is for them to establish effective programs and policies to minimize harassment in the workplace. See Chapter 24: Workplace Harassment

The Indiana Chamber’s newly released Employment Law Handbook (Sixth Edition) contains guidance on nearly every issue an Indiana employer needs to know about. From discrimination to post-hire employment policies to benefits to worker’s compensation, you’ll find guidance in this publication.