Invest in payroll for family-owned businesses in 2023 so that your small business stays on top of any payroll changes and reduces the risk of making miscalculations. A family-owned business is not much different from other small businesses. You still need software to ensure compliance and guarantee that everyone gets paid on time. Payroll software provides a separate layer of security for your business’s sensitive data. Use software to encrypt any of the important files and to efficiently send reports to the Internal Revenue Service by all of the major deadlines.
Advanced Micro Solutions Payroll Software is an affordable and scalable add-on product to our W-2/1099 Forms Filer software. Our payroll software processes “live” and after-the-fact payroll for businesses of any size. We support up to 1,999 payers and 9,999 employees per payer. Try our 1099-etc Demo software today to explore our program modules or watch video tutorials.
Reasons to Get Payroll for Family-Owned Businesses 2023
Automating payroll makes your life easier and makes managing your family business’s regular payroll tasks simpler. Consider getting comprehensive payroll software sooner rather than later for the following reasons:
You want to keep your business compliant as you on-board new employees. Send your employees hire reports with reliable payroll software. You can automate the report process to streamline your collection of information, including your new hire’s name, address, and Social Security number. Eliminate keeping these reports in filing cabinets and desktop folders. Using software to store your federal form files gives you easy access to them.
You want to minimize avoidable payroll mistakes. Stay current on the latest payroll rules and any regulation updates with payroll for family-owned businesses in 2023. Monitor the latest state and federal tax form requirement changes to avoid penalizations. Payroll software helps you to pay employees correctly as well. Minimize the likelihood of wage complaints or family squabbles by automatically paying employees and carefully tracking these payments.
You are tired of manually calculating your business’s payroll taxes. Business owners file payroll taxes to multiple local, state, and federal agencies. Each agency has a different payroll schedule and unique deadline. Use software to avoid needing to input the same information on more than one occasion.
You need help to accurately calculate your own pay. Payroll software can support business owners as they decide whether they want to pay themselves with a salary or an owner’s draw. How you use 2023 payroll for family-owned businesses depends on a business’s classification. Identify whether you are an S or C Corp, or an LLC or sole proprietorship, to better guarantee that your payroll software will help you receive the correct amount of money.
How to Keep a Family-Owned Business Payroll Compliant
Hiring family members comes with advantages like knowing your employee and building a loyal team to avoid regular turnovers. Consider the challenges that you may face when you hire and employ your family members. We included several common questions below and outlined how you can address them.
Should I classify family members as employees? Treat your family members the same way that you would classify any other employee with your payroll for family-owned businesses in the 2023 tax year. Ask all employees to submit IRS Form I-9 and Form W-4 when you hire them. Provide a family member with the same health benefits and hold them to the same employment tax regulations. Do not pay federal unemployment tax (FUTA) if you hire your spouse or a parent.
How much can I pay a family member who works for me? Pay any of your family members an appropriate amount that aligns with their job position’s industry expectations. There are no set limits. Bear in mind the business’s overall morale if you pay a family member higher wages versus another worker who does the same amount of work for less pay. Remember that your family member’s salary influences your net business income.
How should I pay family members? Pay family members like your other workers regardless of whether you use cash, paper check, or direct deposit.
Why Family Businesses Use AMS Software
Many people use our payroll for family-owned businesses because our software evolves with the latest rules and regulations. Our add-on module supports all 50 states, plus the District of Columbia and Puerto Rico. Review our regularly updated state and federal tax tables as you process employee direct deposit payroll information. We also offer over 30 different check types that you can print individually or by a date range.