Running a small business is not an easy task, especially one that is successful and improving on their profits on a yearly basis. An important aspect of running a small business is setting up and managing your payroll services. You want to make sure you are managing your payroll properly so that you avoid IRS penalties once tax season comes around. Luckily, there are a few payroll tips you can follow
Classify Your Employees and When To Pay Them
When it comes to paying your workers, you need to put them into a variety of categories. You need to determine if your worker is a full-time employee, independent contractor or intern. If they are a full-time employee, you need to establish if they are on salary or you are paying them per hour. Having employees on salary is generally less stressful because you are paying them a consistent sum each pay period. You need to decide a specific pay period for your employees; either weekly, bi-weekly, or monthly.
Focus On The Software and Stay Organized
One of the most important aspects of managing your company’s payroll is choosing the right software. You want to choose a payroll software program that you can access all of the information you need in one play. When it comes to managing payroll, it is critical that you stay as organized as possible. You want to keep important documents and records, such as W-2 and other tax forms, in one place.
Determine A Budget
You need to factor in taxes, as well as, wages when planning out your payroll. As a business owner, you are required to pay Social Security and Medicare taxes. You may also have to pay unemployment taxes, so make sure you plan for these expenses as you create your payroll process.
PL Consulting Can Help You Plan Your Budget!
PL Consulting offers a diverse range of bookkeeping and other financial services. Each of our services is customized to fit the needs of our client and his or her business plan. Our team can help you with each step of your business from organization, to budget, to financial maintenance. We are located in Pikesville at 119 Old Court Rd Baltimore, MD 21208. Contact us at 410.764.3731 or firstname.lastname@example.org so that we can assist you with your bookkeeping needs. Remember to stay up to date with everything PL Consulting by following us on our social media platforms via Facebook, Twitter, and Google+.