Preparing Payroll Properly!
Owning a small business means wearing multiple hats; especially when starting the business. Not only are you the salesman, marketer, and operator, you are also the strategist, and product developer. In addition, you’re tasked with the dreaded human resource and payroll manager jobs. So the question becomes, why not hire a payroll services firm instead of doing it yourself?
Starting out, the last thing most business owners think about is being the accountant for their business. The headaches and stress that accompanies payroll, and other accounting aspects, can really worry your mind. Thankfully, outsourcing some of the duties listed above is an option. Outsourcing payroll services for your business, to an expert Allentown CPA firm is a good idea, even when your business is small. Getting checks out to employees and making sure they are accurate is important. It’s even essential when you only have 1 or 2 employees. The same goes for paperwork and taxes. A lot of tax prep and paperwork is required when dealing with payroll. Be sure to get it right! Hire Ryder and Company for your payroll needs. Below are all the steps necessary to properly pay your employees, according to resourcenation.com:
Doing payroll isn’t a one step process. There are many steps you must take to properly pay your employees:
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Administrative Organization – this includes maintaining the proper information on your employees, including sensitive information like social security numbers. This also means documenting pay rates, vacation time, personal days, hours worked, etc…
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Collecting Timesheets and Invoices – If you work with a network of contract employees, you’ll need to collect invoices that document their work for pay. For any part-time employees, it’s also necessary for you to keep track of their timesheets so you pay out only the hours they worked. This can be done electronically if you’ve set up a time clock, or can be tracked through a spreadsheet that employees hand in each week.
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Processing Payroll – This step isn’t just adding up the number of hours your employees have worked and multiplying it by their pay rate; it also involves calculating adjustments, and accounting for deductions based on health insurance benefits (if you offer it), retirement contributions, government taxes and fees, court-ordered wage garnishment orders, and paying out commission-based compensation, bonuses, or overtime.
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Cutting Checks – Whether or not you offer direct deposit to your employees, you must either cut checks for those employees who have not opted in to such a services, or you must print and distribute summaries so employees can see the activity and withholdings around their pay.
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Taxes – When you take on employees, you have a responsibility for settling payroll taxes, such as social security, Medicare, or unemployment. There are also several payroll tax reports that you are required to submit throughout the year, and this can be a confusing process. The IRS’s Employer’s Tax Guide offers guidance on all federal tax filing requirements.
Clearly, managing payroll for your small business is a job within itself. If done properly, it could easily become a full time job. If you feel like the steps listed above are too much for you to take on, without stress, be sure to call Ryder and Company. We would love to assist you in any way possible. Our CPA firm offers payroll services for nearly any size business, as well as, other services for Reading, Wyomissing, and Exeter PA, small businesses and individuals. Call us today and get started!