Category: News and Events

Hiring your first employee is an exciting milestone. It usually means the business is growing, demand is increasing, and you are ready to share responsibilities that once rested entirely on your shoulders.

It also changes the way your business operates.

Once you move from an owner-only business to an employer, you take on new responsibilities related to taxes, payroll, recordkeeping, workplace compliance, and data security. Planning ahead can make the transition smoother for you and the new hire, preventing frustration and unnecessary work later.

The good news is that you don’t have to become an expert in every area. With the right guidance from accounting, payroll, and IT professionals, you can build a practical foundation that supports your first employee and the employees who may follow.

Start with the Numbers, Not Just the Salary

Before you make an offer, take a realistic look at what the employee will cost the business.

Salary or hourly wages are only part of the total. Employers may also be responsible for their share of Social Security and Medicare taxes, federal and state unemployment taxes, workers’ compensation insurance, payroll processing costs, equipment, software licenses, training, and any benefits offered.

Your CPA or business advisor can help you assess how the new position fits with your budget and cash flow, reviewing:

• The full cost of the position beyond wages
• The effect of payroll expenses on cash flow and estimated taxes
• The timing of payroll tax deposits and other employer obligations
• How wages, payroll taxes, and benefits should be recorded in your accounting system
• Whether your current business structure still supports your plans for growth

This is also the time to make sure you have an Employer Identification Number, or EIN, and the necessary state and local registrations. The IRS requires businesses with employees to have an EIN. Depending on where your business and employee/s are located, you may also need unemployment compensation, withholding tax, and local tax accounts.

A little planning at this stage helps answer an important question: Can the business comfortably support this employee not only this month, but throughout the year?

Make Sure the Worker Is Classified Correctly

Some business owners assume their first worker can simply be treated as an independent contractor. However, employee or contractor status is based on the actual working relationship, not the title used in an agreement or the method of payment.

Factors such as who controls how the work is performed, whether the worker operates an independent business, and the overall nature of the relationship matter. Misclassification can lead to back taxes, penalties, wage issues, and amended filings.

Before work begins, discuss the arrangement with a qualified advisor. Starting with the correct classification is much easier than correcting payroll and tax records later.

Build the Payroll Process Before the First Payday

For an owner who has never had employees, payroll can look deceptively simple: calculate the hours, issue the payment, and record the expense. In reality, every payroll involves tax withholding, employer tax calculations, deposits, filings, wage records, and deadlines at the federal, state, and local levels.

An experienced payroll professional will help establish the best process for your business before the employee’s first day, including:

• Selecting pay frequency and setting payroll deadlines
• Collecting federal, state, and local withholding forms
• Setting up direct deposit and obtaining the proper authorization
• Confirming hourly or salaried status and how time will be tracked
• Establishing deductions, paid time off, or other employer policies
• Registering for applicable payroll tax accounts
• Scheduling required tax deposits and filings
• Preparing for quarterly reports and year-end Forms W-2 and W-3

Every U.S. employer must also complete Form I-9 to verify the identity and employment authorization of each person hired. In addition, employers need a signed Form W-4, along with any required state and local forms, from the employee to calculate appropriate income tax withholding.

Pennsylvania employers have additional details to manage. Employers must report employees who live or work in the Commonwealth through the state’s New Hire Reporting Program. A Pennsylvania Residency Certification Form is also used to identify the employee’s home and work municipalities, Political Subdivision (PSD) codes, and the correct local earned income tax rate.

These steps are easier to manage when payroll information is complete from the start. Missing forms, incorrect addresses, or an inaccurate work location can create withholding problems and time-consuming corrections later.

Connect Payroll to Your Accounting System

Payroll should not operate separately from the rest of the company’s financial records.

Your accounting and payroll teams should agree on how wages, employer taxes, reimbursements, benefits, and payroll liabilities will flow into the general ledger. A reliable connection between payroll and accounting reduces duplicate data entry, keeps financial reports cleaner, and helps your CPA see an accurate picture of the business.

That visibility becomes increasingly valuable as the company grows. With current payroll information reflected in the books, you can better monitor labor costs, compare actual expenses with your budget, and make more informed hiring decisions.

Prepare Employee Technology Before Day One

Your first employee will need more than a computer and a password. Adding another person means deciding how business information will be accessed, shared, stored, and protected.

An IT professional will make sure you have an environment that is both practical and secure, including:

• A company-owned computer configured with current security updates
• An individual company email account rather than shared login credentials
• The software and licenses required for the employee’s role
• Multifactor authentication for email, financial, payroll, and cloud accounts
• Access permissions limited to the files and systems the employee needs
• Secure cloud storage and an organized method for sharing documents
• Endpoint protection, reliable backups, and a plan for technical support
• A documented process for changing or removing access when an employee leaves

It can be tempting to let a new employee use the owner’s login or share a general password because it feels faster. That shortcut makes it difficult to control access, track activity, and protect sensitive information. It is especially risky when the systems involved contain customer records, financial information, tax documents, or payroll data.

Creating individual accounts from the beginning is a small step that supports accountability and makes future hiring much easier.

Create a Repeatable Onboarding Checklist

Your first employee is also your opportunity to create a process you can use with each additional new hire.

Bring the accounting, payroll, and technology details into one onboarding checklist with clear owners and deadlines.

Include these elements:

• Before the start date: Confirm compensation, worker classification, insurance, payroll registrations, work schedule, equipment, email, software, and system access.
• On the first day: Collect the required payroll and employment forms, review timekeeping and pay procedures, activate accounts, and explain basic security expectations.
• During the first payroll: Verify hours, compensation, deductions, tax withholding, direct deposit information, and accounting entries flowing to the general ledger.
• After the first month: Review actual employment costs against the budget, confirm that required filings and payments are on schedule, and address any technology or workflow issues.

A documented process means you don’t have to remember the steps each time, giving your business a stronger foundation when it is time to hire employee number two and beyond.

One Hire, Several Connected Decisions

Hiring your first employee touches several areas of the business at once. The accounting decisions affect payroll. Payroll information affects tax reporting and the general ledger. IT choices determine how securely the employee can access the systems and data needed to do the job.

When those decisions are made separately, gaps can appear. When the right professionals work together, the process becomes easier to manage.

You’re already focused on running your business. Canon Capital’s CPA, Payroll, and IT Security & Services teams bring specialized knowledge to every part of the hiring transition, working together to keep the process moving smoothly. Whether you’re still deciding if the time is right or preparing for your first employee’s start date, our team can help you move forward with ease.

Contact us to start the conversation and make sure your tax, payroll, and IT systems are ready so you can hire with confidence and build a strong foundation for the growth ahead.

We’re pleased to announce that Canon Capital team member Daniel Hagen has earned his Certified Public Accountant designation.

Becoming a CPA is a significant professional accomplishment requiring extensive preparation, determination, and a strong command of complex accounting principles. Daniel’s achievement reflects the dedication he has brought to his career and his work at Canon Capital.

Daniel joined our team as a staff accountant in November 2022. A graduate of Temple University with a Bachelor of Business and Marketing, he began his accounting career in tax preparation. Since joining Canon Capital, Daniel has continued to strengthen his expertise while becoming a valued member of our CPA division.

“It is very exciting to have a team member pass what is widely considered one of the most difficult credentialing exams in the world. We recognized very early the potential leadership and competency with Dan, and we couldn’t be more excited for him personally to achieve this milestone. It has been an absolute pleasure seeing Dan develop for the past number of years through this process, and it’s going to be a pleasure seeing him continue his development in the future, having accomplished this goal,” said Brent Thompson, Shareholder and Director, Canon Capital Management Group CPA Division.

For Daniel, earning the designation marks both the culmination of years of hard work and the beginning of an exciting new phase in his professional development.

When he isn’t serving Canon Capital clients, Daniel leads worship at Renew Community Church and enjoys playing guitar, practicing martial arts, snowboarding, and baking sourdough bread at his Quakertown home.

Please join all of us at Canon Capital in congratulating Daniel on this outstanding and well-deserved achievement.

Recent changes in Pennsylvania local sales tax law shifts local sales tax collection from the point of sale to the point of destination. In other words, the applicable local tax is now determined by where the product or service is delivered, rather than where the vendor is located.

Under Act 21 of 2026, businesses that are required to collect Pennsylvania’s 6% sales tax must now also collect the applicable local tax on taxable products or services where they are delivered. This has implications for any local business serving customers in Philadelphia or Allegheny Counties:

• Philadelphia County: An additional 2% must be added to the statewide 6% rate
• Allegheny County: An additional 1% must be added to the statewide 6% rate

This law took effect retroactively for tax years after December 31, 2025. However, the Pennsylvania Department of Revenue will not begin enforcement until October 1, 2026, giving businesses time to update their procedures.

If your business serves customers in Philadelphia or Allegheny Counties, review your customer addresses, invoicing practices, and accounting or point-of-sale systems now so you’re ready by the October 1^st deadline.

Learn more through the Pennsylvania Department of Revenue.

If you have any questions, we are here to help. Contact us online or call 215-723-4881.

The middle of the year is one of the best times to look at your business taxes. It’s when you have enough real-world results to see where revenue, payroll, and expenses are heading but there is still time to make thoughtful adjustments before the fourth quarter.

A mid-year checkup is not a miniature tax-season scramble. It is a planning conversation. Ask:

• Are your estimated payments keeping pace with your income?
• Have changes in your team, ownership, or spending created new tax questions?
• Could upcoming purchases or investments affect cash flow or deductions?

Reviewing these items now can make year-end decisions more deliberate and filing season less surprising.

Update Your Income and Cash-Flow Projection

Start with what has happened through the first half of the year, then build a reasonable projection for the remaining months. Compare year-to-date revenue, gross profit, operating expenses, and owner activity with your budget and prior-year results. A strong new contract, a delayed customer payment, an unexpected expense, or a slower season can all change the tax picture.

The goal is not to predict the exact December 31 result. It is to develop a working estimate that can guide tax payments, hiring, distributions, and purchases. Look at cash flow alongside taxable income; a profitable business can still be short on cash when receivables, inventory, or expansion costs absorb the money.

Recalculate Estimated Tax Payments

Estimated payments based on last year’s results may no longer be accurate. The IRS calculation considers expected income, deductions, and credits, and the correct payment method depends on how your business is taxed. Sole proprietors, partners, and S corporation shareholders generally make individual estimated payments, while C corporations follow corporate rules.

If results are ahead of plan, an increase may help reduce underpayment exposure. If business has slowed, or deductions have increased, the next payment may need to be reconsidered. For calendar-year individual taxpayers, the third installment generally falls in September, making a review before Q4 especially useful.

Confirm Payroll Deposits and Filings

Use the mid-year review as a quick payroll compliance check:

• Review the federal deposit rules, then confirm that deposits, quarterly returns, and payroll records agree.
• Check state and local obligations if you have hired employees, changed work locations, or added remote staff.
• For Pennsylvania employees, verify residency for local earned income tax and local services tax responsibilities.

Discrepancies are easier to fix now rather than later.

Review Deductions and Credits While There Is Time to Act

A mid-year review can uncover expenses that are missing from the books or sitting in the wrong category. Use this time to:

• Reconcile bank and credit card accounts.
• Gather receipts and other supporting records.
• Document the business purpose of travel, vehicle, professional, technology, and other costs.

In general, deductible business expenses must be ordinary and necessary, but the timing and treatment can vary. Good records give your CPA a clearer picture and help support your return.

Credits are worth reviewing separately because they reduce tax differently from deductions. Depending on your business, opportunities may include conducting qualified research, starting a retirement plan, hiring, or other activities. Some credits require specific documentation, elections, or action before year-end. Identifying a potential credit in August is more useful than discovering it after the qualifying window has closed.

Revisit Entity Structure and Owner Compensation

The structure you chose when the company was formed may still fit, but growth, new owners, or new long-term plans can justify another look. Your business structure affects how income is reported, how owners are paid, and which returns are filed. Reviewing it now gives you time to weigh tax, legal, administrative, and cash-flow consequences before next year.

Owner compensation should be part of that discussion. For example, an S corporation generally must pay a shareholder-employee reasonable compensation for services before making non-wage distributions. Review salary, distributions, benefits, and reimbursements together. If an adjustment is appropriate, spreading it across the remaining payrolls is usually easier than a December correction.

Discuss Equipment and Software Before You Buy

If equipment, vehicles, computers, or software are on the Q4 wish list, bring those plans into the tax discussion before signing a contract. Start with the business need and cash-flow impact, then consider the tax treatment. Depreciation generally begins when qualifying property is placed in service.

Under current federal law, certain qualified property acquired and placed in service after January 19, 2025, may be eligible for 100% additional first-year depreciation. Section 179 may offer another path for eligible purchases, including some off-the-shelf software. Cloud subscriptions, implementation work, and customized systems can be treated differently, so share the proposal and expected go-live date with your CPA. Tax timing should support the business decision.

Turn the Review into a Q4 Action Plan

A useful checkup should end with clear next steps:

• An updated income and cash-flow projection
• Revised estimated payments, if needed
• Payroll items to correct and records to gather
• Major decisions that require follow-up

Assign an owner and deadline to each task so you enter Q4 with fewer unknowns, better cash-flow visibility, and time to act.

Planning Ahead? Let’s Talk It Through

Tax planning works best alongside the decisions that shape your business. Our CPA and Payroll teams can help review year-to-date results, payment schedules, owner compensation, and upcoming investments before the year-end rush begins.

Have questions? We are happy to talk. Contact us online or call 215-723-4881.

The IRS has announced a midyear increase to the standard business mileage rate, raising it from 72.5 cents per mile to 76 cents per mile, effective July 1, 2026.

The IRS also increased the standard mileage rate for eligible medical and moving purposes from 20.5 cents to 23.5 cents per mile, effective July 1. The charitable mileage rate remains unchanged at 14 cents per mile.

These changes were made in response to recent increases in fuel prices.

For business travel that occurred between January 1 and June 30, 2026, the previous rate of 72.5 cents per mile still applies. The new 76-cent rate applies to qualifying business mileage beginning July 1.

Questions? We are here to help. Call 215-723-4881 or contact us online.

Trump Accounts are a new type of savings account for children with a contribution start date of July 4, 2026. Here’s an overview of the key details families should understand about how these accounts work and who qualifies.

While elections to establish a Trump Account may be made before July 4, 2026, contributions generally cannot begin until that date. This applies to both ordinary contributions and the $1,000 federal pilot program contribution. The pilot contribution is made only after a valid election is processed and the child’s Trump Account has been opened.

Who Is Eligible for a Trump Account?

A child may be eligible for a Trump Account if they meet the definition of an “eligible individual” under IRC §530A(b)(2). In practical terms, the child generally must:

• be under age 18 at the end of the calendar year in which the election is made;
• have a Social Security number issued before the election date;
• have an election made either by the Secretary or by another authorized person; and
• not already have had a prior Trump Account election made on their behalf.

IRS guidance further explains that, for 2026 elections, this generally means a child born after December 31, 2008, may qualify for an initial Trump Account if the Social Security number requirement is met.

Who Can Contribute?

During the growth period, contributions may come from several sources, including:

• the federal $1,000 pilot-program contribution;
• qualified general contributions funded by governments or §501(c)(3) organizations;
• employer contributions under IRC §128;
• qualified rollover contributions from another Trump Account for the same child; and
• other contributors, such as the child, parents, relatives, or any other person.

Ordinary contributions and employer contributions are generally subject to a combined $5,000 annual limit during the growth period, indexed after 2027.

The federal pilot program contribution, qualified general contributions, and qualified rollover contributions do not count against the $5,000 cap.

Separate Eligibility for the $1,000 Pilot-Program Contribution

It’s important to note that eligibility for a Trump Account itself is broader than eligibility for the federal $1,000 seed contribution.

For the pilot contribution under IRC §6434, the child must generally:

• be a qualifying child under IRC §152(c) of the person making the election;
• be born after December 31, 2024 and before January 1, 2029;
• be a U.S. citizen;
• have a Social Security number issued before the election; and
• not have had a prior pilot-program election processed.

The pilot contribution is paid only into an established Trump Account. If the child does not have an account, no cash refund is paid outside of the account.

How Elections Are Made

Although contributions cannot begin until July 4, 2026, elections to establish the account and request the pilot contribution may be made earlier on Form 4547, including with a 2025 tax return, or later through the IRS online process when available.

The Short Version

Contributions begin July 4, 2026. A Trump Account can generally be opened for a child under age 18 with a Social Security number and no prior Trump Account election. The separate $1,000 federal contribution is more limited and generally applies to U.S.-citizen children born in 2025 through 2028 who also meet the qualifying-child and Social Security number requirements.

Additional information about setting up these accounts is available on the official website.

If you have questions about how these rules may apply to your family or specific situation, please feel free to contact us.

The City of Philadelphia has once again reduced its wage tax rates, with the new rates taking effect July 1, 2026.

The updated rates are:

• Philadelphia residents: 3.735%
• Philadelphia nonresidents: 3.425%

Any paycheck issued after June 30, 2026, should have the Philadelphia Wage Tax withheld using the updated resident or nonresident rate, as applicable.

The City has also updated its earnings tax rates to match the new wage tax rates. These reductions are part of Philadelphia’s five-year gradual tax-cut plan.

As a reminder, the net profits tax and school income tax follow the same rate-reduction schedule, but those changes don’t take effect until January 1, 2027.

What to Do Now

For taxes that apply to you or your employees, take a moment to review your payroll withholding setup and confirm the correct rates are being applied. Doing so now can help you avoid withholding errors and related payroll issues down the line.

If you have questions about how these changes affect your payroll, please contact us. We’re happy to help.

Practical Apps That Help Businesses Work Smarter

Any small business owner will tell you there simply aren’t enough hours in the day. We hear this when talking with business owners across the region. No matter the industry, the challenge isn’t the core work of the business: it’s the small operational tasks.

A contractor might start the morning by returning a customer call, sending a few invoices before lunch, and then lose fifteen minutes digging through email trying to find the latest version of a proposal. None of these tasks is especially difficult, but together they can take up a surprising amount of time.

That’s where the right technology can make a real difference.

Many small businesses don’t need complicated systems or a massive software stack. A handful of practical tools can remove a lot of the small administrative friction that slows a business down. The goal isn’t adding more technology. It’s making everyday operations run more smoothly.

In Practice: What a Small Business Tech Stack Often Looks Like

A lot of small businesses don’t rely on one all-in-one system. Instead, they use a few tools that each solve a specific problem.

For example, a service company might use a CRM to track customer inquiries, a payment platform to send invoices, cloud storage to manage contracts, and a task management tool to organize work across the team. Working together, these tools can eliminate a surprising amount of day-to-day administrative work.

We’ve seen this in the field. When businesses begin organizing their operations more intentionally, small improvements (better scheduling, clearer records, easier document access) can quickly add up to meaningful time savings.

Cloud Accounting Tools That Support Your CPA

Financial software has changed dramatically over the past decade. Not long ago, accounting files lived on a single computer and had to be emailed back and forth between a business owner and their accountant. Anyone who managed finances that way remembers how easy it was to lose track of the “latest version” of a file.

Cloud accounting systems have changed that dynamic for most businesses.

Platforms such as QuickBooks Online and Xero allow financial information to be stored securely online, where both the business owner and their CPA can access it when needed. Transactions sync from bank accounts, expenses are categorized automatically, and reports can be generated quickly.

What these tools do not replace is professional accounting guidance. Instead, they work more like shared workspaces. The software keeps the records organized, while your CPA reviews the numbers, ensures compliance, and helps interpret what the data actually means for the business.

Customer Relationship Management (CRM)

We often see small businesses storing customer information in four or five different places at once. An email thread here, a spreadsheet there, maybe a few notes in someone’s phone. Most businesses don’t notice how scattered that information is until they try to find something quickly.

A CRM brings that information together in one place.

Tools including HubSpot CRM and Zoho CRM allow businesses to track leads, store contact information, and record past conversations with customers. For service businesses, this is one of the simplest improvements they can make. When a client calls or emails, the full history of the relationship is already there.

That small change alone often saves time and avoids a lot of repeated conversations.

Payment and Billing Platforms

Getting paid quickly matters, especially for small businesses managing cash flow. After all, even a profitable business can run into problems if payments are delayed.

Digital payment systems make the process easier for both businesses and customers. Instead of checks or manual invoices, payments can be handled online and recorded automatically with tools such as:

• Square: widely used by retail and service businesses
• Stripe: popular for online payments and subscriptions
• Bill.com: designed to help manage outgoing payments and accounts payable

One benefit is the transaction history these tools create. Clear digital records make reconciliation easier and provide cleaner information for accounting review.

Document Storage and Collaboration

Anyone who has searched through a long email thread trying to find the “final version” of a contract understands why cloud storage has become so widely adopted.

Tools such as Google Drive, Dropbox, and Microsoft OneDrive allow businesses to store files in a central location where they can be accessed from anywhere.

For many small teams, knowing where documents live can remove a surprising amount of daily frustration.

Task and Workflow Management

As a business grows, it becomes harder to track everything that needs attention. Projects overlap, deadlines shift, and responsibilities can become unclear. Task management platforms help bring some structure to that process.

Common tools include:

• Trello: which uses visual boards to track work
• Asana: designed for assigning tasks and deadlines
• Monday.com: a flexible workflow platform for growing teams

Cybersecurity and Data Protection

Cybersecurity is no longer just a concern for large companies.

Small businesses are increasingly targeted by phishing attempts, ransomware, and other digital threats, sometimes simply because attackers assume smaller companies have weaker defenses.

Basic protection tools can reduce that risk significantly.

Password managers like 1Password or LastPass store credentials securely. Canon Capital IT Services & Security’s IT Security Offering has a password manager built in and includes EDR (endpoint detection & response); a next-generation level of protection (including 24/7 monitoring center) against viruses and malware for your computers and servers. Backup services that we offer protect against corruption or accidental deletion for your servers, computers, and O365 SharePoint, OneDrive, and Mailboxes (no, Microsoft doesn’t back those up as part of your licensing agreement).

These tools work quietly in the background to prevent costly disruptions.

Payroll Technology

Many software platforms advertise automated payroll systems. These tools become less convenient as payroll compliance continues to grow more complex with evolving federal, state, and local requirements.

Because of that complexity, many businesses rely on experienced payroll professionals rather than managing payroll entirely through software.

Our Payroll division here at Canon Capital Management Group takes the concern – and work – off your plate by reducing administrative burden while helping businesses remain compliant. Our Payroll team would be glad to share more details or provide a quote.

Building a Tech Stack That Works for Your Business

Technology works best when it simplifies operations rather than adding another layer of complexity. The best route: choose a few tools that keep information organized, reduce repetitive work, and make decision-making easier.

As those systems begin working together, the day-to-day running of the business becomes noticeably easier.

Need Help Evaluating Your Technology?

Choosing the right tech tools and making sure they work smoothly with your accounting and payroll processes can have a real impact on efficiency.

The IT Services & Security division here at Canon Capital Management Group works with businesses across Pennsylvania to evaluate and implement practical systems that support long-term growth.

In many cases, small adjustments to existing systems can make as much difference as adopting new tools. The right technology won’t run your business for you, but it can remove a surprising amount of friction from the day-to-day work.

If you’re considering new tools or wondering whether you could improve your current setup, our team would be happy to help.

Contact us online or call 267-381-2025 to start the conversation.

Canon Capital is seeking an experienced payroll professional to join our team.

We have an opening for a part-time Payroll Processor to work 18–20 hours per week out of our Harleysville, PA office. This is a great opportunity for someone who thrives in a detail-oriented environment and is looking for flexible hours with competitive pay.

If you or someone you know has payroll processing experience and is looking for a rewarding part-time role, we’d love to hear from you.

View the full job listing and apply here.

You know those little payroll details that seem harmless in the moment? The address that didn’t get updated. The W-4 that hasn’t been looked at in years. The bank account change mentioned after payroll has already been processed.

They may not seem like a big deal at the time, until tax season arrives, a paycheck gets delayed, or an employee gets an unexpected surprise.

A few of the most common payroll issues we see are also some of the easiest to prevent with timely communication and a quick review of employee information.

Federal withholding that does not match the employee’s situation

If an employee finds that too little federal tax has been withheld from their paycheck, the issue often traces back to their Form W-4. Life changes such as a new job, marriage, divorce, a second household income, dependents, or other income changes can all affect withholding.

Employers should not advise employees on how to complete their W-4, but they can point them to the IRS Tax Withholding Estimator. The IRS recommends checking withholding each January and after major life changes to help avoid an unexpected tax bill or penalty.

Incorrect employee address information

An outdated or incorrect address can create W-2 problems and, in Pennsylvania, may also lead to incorrect local withholding. Pennsylvania’s Department of Community & Economic Development notes that employees are required to complete a Residency Certification Form when hired and with any subsequent address change.

When an employee moves, they should complete a new Local Earned Income Tax Residency Certification Form so the employer has the correct PSD code and Earned Income Tax rate on file.

Employees find their local withholding rate and PSD code through Pennsylvania’s official Municipal Statistics address search tool.

Direct deposit changes were made too late

Another common payroll issue happens when an employee changes bank accounts and does not update their direct deposit information. If payroll is already being processed, a last-minute update may not be enough time to prevent a rejected deposit or payment delay. We can arrange to have a paper check issued during the account changeover so employees don’t miss a paycheck.

A good rule of thumb: employees should notify their employer of direct deposit changes before the end of the pay period, not on payday.

A little prevention goes a long way

Payroll accuracy depends on timely, accurate information. Encouraging employees to review their withholding, update address changes promptly, and communicate banking changes early can help reduce avoidable problems later.

For employers, clear reminders throughout the year can make a real difference. For employees, a few minutes of review now can prevent a much bigger headache at tax time.

Questions? We can help

Our experienced Payroll team is here to help you keep your payroll processes running smoothly. The links mentioned above, along with additional helpful information, can be found on our website as well.