Running a business is not an easy feat, whether you are in charge of a large company or starting a small business. If you are in starting a small business, one of the most important aspects is setting up payroll so that you can pay your employees and yourself. In last weeks blog, we discussed general tips on how to operate and manage your small business’s payroll on a regular. If you want to learn how to set up payroll for your small business, then follow these simple tips.
Register For All Of The Proper Accounts
Before you can actually run payroll and pay your employees, you need to make sure that you are registered for all of the proper accounts. You need to make sure that you register for all of the accounts regarding your specific business so that you can pay taxes. You need to make sure that you have an Employer Identification Number, known as a tax ID number, so that you can pay federal taxes. You need to make sure to set up an Electronic Federal Tax Payment System so that you have an account to pay your federal taxes. It is essential that you set up accounts to pay state taxes, as well as, an account to report new hires.
Get Important Information From Employees
Besides the information you need to give about your business to set up payroll, you need to receive important information from your employees. Once you hire an employee, they need to fill out a W-4 form, which is a personal allowances sheet. On this sheet, each employee can determine how much federal taxes you will take out of their wages. Usually, this information is determined by how many dependents they have. If you are offering employees benefits, you need them to fill out forms detailing if it is a pre or post-tax deduction.
Wages and Frequency
When it comes to paying your employees, you need to determine if you are paying them a set salary or an hourly wage. You also need to determine if each employee is exempt from overtime wages. Exemption from overtime wages is determined by how much you are paying your employee and their specific duties. After you have determined a wage, then you need to set a frequency of when to pay them. Common payroll frequencies are weekly, bi-weekly, and monthly.
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+.Posted on