As an entrepreneur, you wear a lot of hats. One area which might be completely headache-inducing is payroll. Learn how you can reduce this stress today.
Even for seasoned professionals, payroll can be daunting. Dealing with endless data while ensuring its accuracy is often a stressful affair.
The easy solution to this issue is to hire a payroll specialist. Other than saving you a lot of time, this method helps minimize errors and reduce time-wasting. Plus, payroll experts are aware of any potential changes in deadlines and legislations.
Not a fan of payroll outsourcing? Prefer to go it alone? If so, here are some tips that should help you get through this dreaded period in one piece.
1. Proper Documentation
Payroll comes with a lot of documentation, so it’s best to keep track of it from the get-go. For starters, make sure your new employees fill out the proper paperwork. These include Federal W-4, Form I-9, and state withholding forms.
Keep in mind that many things that determine payroll withholding can change at any time. For example, your employees may make changes to their W-4. They may also move to a different city or state, which can affect tax.
2. Automated Paperwork
In this digital age, there’s no reason not to use payroll software. Other than dealing with the more tedious payroll tasks, these services can keep track of tax changes. By using them, you can make sure you’re always withholding the right amount.
Automation makes it easier to handle onboarding, so hiring new people is seamless. You also have payroll services that provide electronic and direct deposit pay stubs. Click here to discover the ultimate online pay stub generator.
3. Date Management
You need to report and deposit your taxes to the IRS throughout the year. If you have a smaller payroll, you should do so on the 15th of each month. With a large payroll, follow the semiweekly rule to make your tax deposits.
Other key dates include due dates for state and local tax filing, as well as federal unemployment taxes. To keep track of these critical dates, consider keeping a calendar. You can also bookmark this page on the IRS website.
4. Rules and Regulations
Payroll laws may not change often, but they do tend to change quickly. For instance, many states have vowed to reach a minimum wage rate of $15 per hour by 2021. If you pay your employees on an hourly basis, this can be of key importance.
You should also keep track of federal, state, and local payroll tax laws. Most changes take place at a future date, giving you time to plan for them. Sometimes, though, they occur midyear, causing significant work to make additional payments.
More on How to Deal With Payroll
If you follow these tips, doing payroll shouldn’t be too stressful.
One final tip: don’t forget your internal processes that affect payroll. These can include sick pay, benefits, commissions, 401(k), and paid time off. Every business is different in this regard, so it’s best to enlist help from your department managers.
Interested in learning more about the various payroll laws? Want to know how the payroll protection program works and what it entails? Keep reading our business-related content!