Tax season is here and with it comes a lot of anxiety for large and small businesses alike. The risk of committing tax mistakes can cost companies big, and if you're still relying on pen and paper for your accounting, the risk is huge. Thankfully, it's not hard to ease your tax season worries. With a workforce management system, you can confidently and quickly issue employee tax records and file your own tax return with confidence.
With new healthcare and tax regulations, understanding the exact hours your employees work is more pivotal than ever. With paper timesheets, it can take days or even weeks to determine how hours were calculated and whether they were accurate. You need to find the specific employee's timesheets, check for manual errors, and combine those hours for the timeframe needed. With a workforce management system, accurate hours are available at a touch of a button and can be compiled in whatever format is needed. This ensures that your company has the documentation necessary to account for each employee's hours throughout the year and that you are paying the proper taxes.
Real Time Answers
Tax time is the time of year where accounting answers the most questions about employee benefits. Employees want to know their withholding status, their employment records, and a breakdown of their earnings. Often, employees also take this time to adjust their withholdings. This can be the start a nightmare for your accounting department who is not only trying to get the business' taxes in order, but also make these adjustments for employees in a timely manner. A workforce management system addresses and reduces these distractions by allowing employees to view and adjust their own withholdings and giving financial employees easy access to employee records for explanations. For real time answers before, during, and after tax season, a workforce management system can provide transparency and easy explanation for employees.
An audit is every businesses' worst nightmare, and while only 2.5 percent of small businesses will ever face an audit, being prepared can help ease any worries of a potential audit. A workforce management system works two-fold in preventing and preparing for company audits. First, a workforce management system can identify tax "triggers" that commonly lead to an audit and give your employees the ability to avoid those triggers. By preventing figure rounding and excessive overtime, you can avoid common causes of audits. Second, a workforce management system has all the information available for auditors to review with little to no additional work for your business. That way, if you are the victim of an audit, you have the ability to quickly justify your tax reports.
A workforce management system can be a godsend during tax season and while it may be too late to benefit from it this year, implementing one in your workplace can save both time and money in the coming year. From offering businesses accurate records to helping businesses avoid some common causes of audits, a workforce management system can end up paying for itself.