Every business owner must start somewhere, and even if you have grown up around business owners or your family runs a business that you are involved in, going it alone can be a whole different kettle of fish. While it’s highly advisable that new business owners seek professional help and guidance when setting up their company and preparing to take on and pay a workforce, there are a few basics that it can be helpful to understand before you begin intake proceedings.
One of the first decisions that any new employer must think about and decide upon, is when to pay your employees:
Paying your employees at a specific time:
While your employees may prefer that you pay them on a date that suits them and at a frequency that they find preferable, the final decision must of course make business sense for you, and once you’ve decided upon whether to pay them weekly, bi-weekly or monthly, you must then arrange the schedule. Once your scheduled is fixed, then your employees wages will need to be calculated with the correct amount of taxes withheld, and their pay check can then be issued.
Outsourcing payroll can be a fantastic way of ensuring that your new employees are paid accurately and in a timely manner, leaving you with a workforce that are satisfied and more likely to be productive when working.
Payroll taxes:
For anyone not familiar with payroll and the tax system related to employee’s wages, it can be extremely risky not to seek professional help, since it can result in costly fines and penalties from the IRS, should you not conform with the tax and regulations set out at state and federal levels. Be warned that these rules can change frequently, and at a moments notice, and that your business itself will owe payroll taxes that will need to be accurately calculated and reported.
Filing tax forms:
Most businesses file their taxes quarterly, while others filing monthly or yearly, and with the plethora of forms required to be filled out and the alarming number of figures to be calculated, it often makes good financial sense for business owners to outsource this duty to a professional payroll provider. This helps to prevent any mistakes that could incur fines, and enables you to be compliant with state and federal rules, too.
Avoiding payroll mistakes:
While there is software available on the market that can help owners of businesses get to grips with calculating payroll, there is still no substitute for engaging with a qualified and experienced payroll professional, who will spot mistakes before they happen and ensure that everything is calculated in a timely manner.
Meeting deadlines:
Federal and state deadlines must be met no matter how your business is running, and the IRS will not be sympathetic to late filers. The IRS website can be referred to for more detailed information about deadlines, and payroll providers will of course be aware of deadlines and ensure that their clients meet them.
Avoiding penalties:
As a business owner, your tax responsibilities are no laughing matter, and making mistakes or missing deadlines can be costly for your company. Such penalties are wholly preventable, provided you seek help from a reputable payroll provider, and for those who are new to the world of payroll, they would be wise to take advantage of a full-service payroll option.
The world of payroll need not be an elusive one and avoiding mistakes and missing deadlines need not be something your business needs to be worried about. Simply contact your nearest payroll provider for help and guidance, and start paying your employees accurately and on time.