Running payroll can feel burdensome if you do not have affordable payroll software for small businesses. You, like other small business owners, have likely wondered the following: What forms do I need to distribute? What are the state and local regulations? What penalties should I know about?
These questions can lead to your company stalling when it comes to finding the best payroll software. Keep in mind the following small business guidelines for paying your employees.
Getting Started with a Payroll Tool
Establish your employees’ salaries. All businesses should strive to pay their employees fairly and competitively. However, you should also consider your business’s needs. Additionally, keep in mind the state minimum wage requirements. Make sure to take into account future bonuses and potential commissions, if applicable.
Distribute and collect employee information forms. Getting affordable payroll software for small businesses can help when it comes time to collect employee information. Your company will need to get any new employee’s Social Security Number (SSN). Also make sure to collect their W-4, the Employee Withholding Certificate. Payroll software can help you organize all of the paperwork. Our accounting and payroll software enables users to create an SSN Verification file for employees.
Establish a payment schedule. One of the more common payroll frequencies for businesses is biweekly. Take into account your business’s needs and cash-flow cycle. You may decide that running payroll weekly, semi-monthly, or monthly makes more sense.
Stay compliant. All companies must stay compliant with the federal government’s regulations. However, every state also has set employment guidelines. Review holiday pay entitlements, leave laws, and overtime rules. The best affordable payroll software for small businesses will allow users to view state and federal tax liabilities at any time.
Make sure to correctly classify all employees. The type of worker your business hires will determine what you withhold from their earnings – if anything. The Internal Revenue Service issues significant penalties for any business that misclassifies its employees with any of its independent contractors.
Remember the possible payroll penalties. One of the best reasons for using payroll software is you can better avoid penalties. Software helps businesses avoid making calculation errors as they run payroll or file taxes. The Internal Revenue Service will issue penalties based on intent, as well as frequency of error.
Maintain your records. You or your company’s payroll department must keep all the employee records updated. Keeping track of your employees’ hours worked and their rate of pay is a legal responsibility. Additionally, make sure to check on the Internal Revenue Service’s website about how long you must keep records of specific year-end tax filing forms.
Why Small Businesses Need Payroll Software
Investing in affordable payroll software for small businesses can only benefit your company. Our payroll software will automatically calculate the company’s federal, state, and local payroll taxes. Users can also import data from Excel, QuickBooks, PeachTree, and Tab Delimited Text Files. Small businesses do not need to outsource payroll or worry about running it by hand. Our software helps members save money, by side-stepping avoidable mistakes, and company time.