Track Your Finances 4 Tips for Managing a Small Business Payroll
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Are you tired of making errors when working out the payment for your employees? Here are 4 tips for managing a small business payroll that should help.
Last year, there were over 30 million small businesses in the US. And those small businesses employ over 58 million people.
If you’re thinking about adding on a staff member or two to make your small business success skyrocket, you need to make sure you’re prepared. But the thought of small business payroll might make your palms sweat.
Luckily, the process isn’t as hard as it sounds. Keep reading to discover tips for managing a small business payroll that should help.
1. Figure out the Basics
When you’re first setting up your payroll for small business, you need to know all the basic information. Regardless of whether you end up outsourcing the payroll work or doing it yourself, as the business owner, you need to know a few essential facts.
First, all employees need to fill out a Form W-4. This is the way that you, and the IRS, keep track of how much taxes the employee pays out of each check.
Then you need to file for your Employer Identification Number if you don’t have one already. This is what identifies your business and will be used on all your employee’s payroll information.
2. Decide on a Payroll Schedule
Then, you need to decide when exactly your employees will receive their paychecks.
Do you want to pay them on a monthly, weekly, or biweekly basis? Some businesses even choose to pay on specific days, such as the 1st and 15th of every month.
Once you’ve decided on the pay dates, think about the specific payroll schedule. Typically, after a pay period ends, businesses use the next week to process and pay their employees. So if the pay period ends on the 1st, you need to have the payroll submitted by the 6th so employees can receive their paycheck on the 8th.
3. Do It Yourself with Technology
There are many easy online payroll services to help you with your small business.
If you want to tackle the work on your own, consider a payroll service like Intuit Payroll. These paid services provide all the basics for a low monthly fee. You enter in the basic information and the program will figure out how much each employee should be paid and calculate your taxes.
If you know all your information, you can even use something a website like PayStubCreator to easily file your payroll. The website will prompt you for certain information and then create a paystub for each employee.
4. Outsource Payroll Help
There’s always the option of outsourcing your payroll help. Don’t be ashamed to admit that the payroll side of things is outside your skill level. You’ll probably be glad you went with professional help by the time tax season rolls around.
Many payroll specialists take on small businesses on an outsourcing basis. This means that you pay the person a small fee to handle your payroll but they aren’t an employee of yours. A quick online search will provide many qualified candidates or ask around other businesses to see who they use.
As your business starts to grow larger, you may want to consider hiring your own payroll employee. If you have enough employees, this could actually save you money.
Make Your Small Business Payroll a Breeze
Using these tips, completing your small business payroll will never be a struggle again.
Remember that regardless of how you choose to file your payroll, you need to first figure out the basics and decide on a payroll schedule. Then you have the option of outsourcing the work and tackling it yourself with the help of technology. If you have just a few employees, you should be able to handle the payroll on your own.
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