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Payroll liabilities are one of the most common things that end up causing disputes in businesses. Payroll is the procedure for calculating the salary and other payroll-related costs for employees. A company's accounting and bookkeeping department manage all of their payroll and accounts payable responsibilities. This includes the processing of deductions from an employee's paycheck.
When an employee misses a payment or receives a late payment, it goes through the payroll liabilities department. The department will pursue the erring payer in court to attempt to recoup the funds. If the company wins the case, they'll be rewarded with the money rightfully owed to them. If not, they'll be responsible for their debts. With this in mind, it's easy to see how payroll liabilities can become very important. Are you unsure what payroll liabilities your business has? Contact Plentii today!
If you find that you have payroll liabilities, there are many avenues available for you to choose from. You could resolve your issue by discussing your problems with the employees themselves. They'll most likely understand why it is that you missed payments and what it is you plan to do about it. Of course, you'll also need to contact your insurance carrier to make sure that you'll be covered in the event of your employees losing their job.
Many companies offer alternatives to resolving these types of issues. One of those options is known as an Offer In Compromise (OIC). An OIC allows you to settle your outstanding debts without having to actually pay them off. This results in a quick solution that satisfies both parties involved.
Another option to settle your outstanding payroll and payables is to file for bankruptcy. Although this can be effective, it should only be seen as a last resort. Bankruptcy should only be used as a last resort because it severely and negatively affects your credit report. The record stays for ten years, so if you ever try to file for bankruptcy again, it will appear on your credit report. That is not something that you want to deal with during your employment or afterwards.
If you cannot agree on a settlement, it may be necessary to take the matter to court and see if a judge can help you settle your payroll and payables liability issues. You'll need to hire a lawyer or business advisor with experience in these specific types of cases. They'll know precisely how to negotiate a good deal for you and keep you out of hot water.
Keep in mind that there are two sides to every story, and both parties have their valid points. The other party may feel they were merely doing their job when they did not detect your payroll and payables liabilities.
As the employer, it's your responsibility to find out what the problem is so that you can do something to fix it. It's your company and its reputation on the line. Situations like this are why accurate financial records are so vital. Allow Plentii to ensure that everything is accounted for so you can be rest assured.
EEmployers should remember that this is a public perception as well. Many people see employees as a burden, while others see them as a valuable resource. In addition, some people believe that employees who have accrued a lot of payables are untrustworthy.
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These opinions can create a bad work environment and make it very difficult for an employer to manage their resources. It's in the employer's best interests to get everything wrapped up as quickly and efficiently as possible so that their company runs smoothly, and everyone remains happy. Prevent this unsavory situation from happening by outsourcing your bookkeeping and accounting needs to a firm like Plentii today!