Computer Accounting with Peachtree by Sage Complete Accounting 2010
covers how to enter payroll information for hourly and salary employees.
Why is it important to precisely enter information? What are the possible
consequences if the information is not correct?
There are some people whose handwriting is not legible, and in a case like
this it is the responsibility of the employer to check with the employee to be
sure what the number of deductions is on the W4 form that is submitted.
The ramifications of payroll errors are numerous and the scenarios caused
by them are sometimes overwhelming. If an employee is paid too much this
could cause an overdraft on the company’s bank account, fees will be charged
and the company must take the loss. On the other hand if an employee
is not paid enough this could cause problems for the employee if rent or
certain bills are due to be paid and the employee cannot meet their financial
responsibilities as a result of a payroll error committed by the employer.