Handling Small Business Payroll Like a Pro.
February 5, 2018 by Staff
Filed under Money/Business, Weekly Columns
(Akiit.com) If you run a small business, payroll is one of the biggest challenges you are likely to face, both in terms of logistics and time. Of course, it has to be done and done on time if you want your employees to be paid and happy, so what can you do to make it easier on yourself? Quite a few things actually…
Get Your Tax ID
If you want to run an efficient payroll system, the first thing you need to do is get your employer identification number (EIN). If your business has been incorporated, you should already have this, but if not, you may need to obtain it.
Go for Salaries
If it is practical, and it makes financial sense for you to do so, giving your employees salaries rather than hourly wages is a great way of streamlining the process because you won’t have to worry about checking and counting hours before paying.
Open an Account for Payroll
Opening an account that is separate from your other business accounts and used just for payroll purposes is a good way of ensuring that your employees are paid on time, and your accounts are as accurate as they can possibly be. If you’re ever audited, it will make that process go a lot more smoothly too. Also keeping a paystub, for each check issued will save your business alot of headache if Uncle Sam ever comes calling.
Pay Your Taxes on Time
Payroll taxes trip a lot of small businesses up because they simply forget to pay them in a timely manner and that often means a 100 percent penalty! So, make sure that you stay on top of those taxes and that you get receipts from the IRS each and every time you make a payment if you want to stay out of trouble and avoid any nasty fines that could be crippling for your small business.
Use a Pay Stub Generator
The pay stub generator is a great tool for small businesses who want to keep better track of their payroll costs because it enables you to generate pay stubs at the click of a button. These can then either be downloaded and stored digitally or printed and stored in a filing cabinet for future reference and to prove that a payment was made.
Offer Tax-Free Benefits to Your Employees
You might think that, as a small business, you can’t really afford to offer your employees benefits above and beyond their salaries, but when the time comes for a pay review, it is often easier to do this than to change your streamlined payroll system, and the time saved will save you money. Not only that, but you’ll be able to keep your employees happy while taking better care of your bottom-line too.
Consider Outsourcing
If your business is more time poor than it is cash poor, and if you don’t particularly have the skills it takes to run payroll successfully, nor can you afford to hire a payroll specialist to do it for you, it is probably worth at least considering outsourcing. That way, you can have an expert do the job right, without having to pay a whole lot for the privilege.
Payroll is important, so use these tips to help you get it right in your small business.
Staff Writer; Gary Parker