In our previous blog post, we discussed what makes small business owners fear payroll and how to get control.
Running a company involves wearing many hats and managing a number of important tasks. If you’re unorganized or don’t have the time to spend on your small business’s payroll, you’re bound to feel stressed.
You must know what areas of payroll management you need to cover and discover the best means to tackle these tasks.
4 Areas Of Small Business Payroll You Must Address
Payroll has many ins and outs, but there are a handful of questions and requirements that are worth spending extra time to address. As with most aspects of running a small business, successful management is often a function of proper planning from the beginning, especially considering the tax implications.
Below are four of the most important areas of payroll to address:
Knowing your forms
When you hire a new employee, it’s critical that you know what forms you need to complete, including the I-9, which determines whether your employee can work in the U.S. legally.
Classifying your workers
Upon hiring a new worker, you must also determine if he or she should be classified as an employee or independent contractor. An incorrect classification could be a costly mistake.
Understanding the implications of benefits
As a small business owner, you may be obligated to offer your employees certain benefits. However, your industry determines the different types of benefits you must offer. For instance, you may need to provide workers’ compensation insurance.
Estimating your monthly tax needs
Paying the correct payroll tax each month is a matter of not only knowing what you need to pay each month, but also ensuring that you have set aside the cash to pay it. Estimate your monthly payroll tax needs well in advance.
The Best Payroll Solution For Your Small Business
Given the time constraints you have, it’s often best to find a resource to support you and help get control of your payroll management.
It’s crucial that you understand how your payroll costs relate to your overall business. Payroll is not something you can afford to take lightly or spend minimal time on. A legitimate assessment of your payroll might uncover larger issues with your small business, like having hired too many employees.
Sound payroll reporting helps you understand the true cost of an employee – beyond what goes into their paycheck – and empowers you or your partner to analyze your payroll spending and identify these kinds of problems.
A qualified partner supports you in addressing all aspects of payroll, including the ones you may not realize have an impact on your entire company. Partner with an experienced small business consultant to help take the fear out of managing payroll.
Learn to stop fearing your payroll and take control of your small business.
Do you have the support you need to manage your small business bookkeeping?
Contact us to schedule an appointment to speak with a local small business advisor.