A Small Business Owner’s Guide to Managing Payroll Efficiently

0
23
A Small Business Owner's Guide to Managing Payroll Efficiently

If you’re a small business owner with employees then you’re not alone. Nearly 59 million people in the U.S. are employed by a small business. 

One of the most challenging parts of a small business is managing payroll. While it might seem tough and overwhelming, there’s hope.

This article will take a look at a guide you can follow to manage your payroll efficiently. Read on to explore these tips and become more comfortable with your payroll today!

Payroll Setup

When you’re ready to create paycheck stubs for your staff, you’ll need to decide between manual or payroll software. If you choose payroll software, it isn’t too expensive, and it’s easier to use than the manual method. 

Another advantage to using software is that it’s more accurate than the manual method, and you’re less prone to mistakes. Take a look at how user-friendly it is, the security features, cost, and other features. You’ll want to read the reviews about the software as well. 

Outsourcing your payroll is another option as well. While it’ll cost more, this will save you valuable time on your business. You won’t have to worry about making mistakes either.

Whether you choose a payroll accountant or an employer organization, they’ll take care of depositing and withholding taxes as well. They’ll also know about current federal and state regulations. 

Review Documents

When you’re managing payroll, you’ll want to check for any mistakes such as misspelling, wrong information, or data entry errors. Wrong information can wind up costing you extra money each year.

You can also hire one of your employees to do a payroll audit as well. Check the W-2 forms for your employees to ensure that there’s no inaccurate information. 

Be Informed

Since the government passes new laws, it’s vital that you stay informed about the latest changes. Tax rates and minimum wages can change each year as well. 

Make sure that you comply with employment and labor laws as well. Check out government websites since they’ll have information on any payroll-related changes. You can also check out different newsletters and other websites as well. 

Retain Records

There are certain records that must be retained. All records need to be kept for individuals who are employed. It doesn’t matter how long they’ve been working for you. 

After they leave, you’ll still need to hold onto these records for a certain period of time. Employment tax records need to be kept for at least 4 years. 

Producing Payroll

When you enter the information of your employees into a payroll system, you can then produce your first payroll. Use timekeeping tools that you have for hourly workers. You can also input the number of hours they work each week. 

For salaried employees, you don’t report their hours. This is because they’re paid the same each week. 

A Guide To Managing Payroll

Now that you’ve explored this guide on managing payroll, you should be set to get started today. You should now be able to choose between manual, outsourcing, or software for your payroll needs. 

Would you like to read more tips and tricks? We can help! Check out our other articles on our site today! 

Read Also : How To Streamline Your Company’s Payroll ?