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Learning how to do payroll can save you money.
As a small business owner, you know expenses can add up fast. You will always have an eye out for any money-saving opportunities.
So why not payroll? You don’t need to be a certified accountant or hire someone to fill the accounting role at your small business.
If you want to learn how to do payroll, let’s go over 5 tips that can help you succeed.
1. Learn How to Do Payroll
Managing your small business payroll can look like a spreadsheet that never ends. Those numbers don’t have to be scary though.
Learning how to do your company payroll can save you money, keeps records on hand, and gives you more control.
There are plenty of options when it comes to payroll software. Some even create the necessary tax forms for you and your employees.
2. Get Your Paperwork Done
You’ll need to fill out a few papers, as will your employees as you make your transition to completing your own payroll.
Your employees will need to complete Form W-4, this allows them to keep track of any allowances and their filling status. You, more like your business, will need an Employer Identification Number (EIN), you may also need to apply for a state EIN number. The EIN number identifies your business to the federal and state government.
Make sure you schedule paychecks in accordance with your state laws.
3. Add Up the Numbers
Be sure to take into account overtime, sick days, and early leaves when making paychecks. You’ll be sure to find out if you underpaid an employee, but if you overpaid…you may not.
Worker’s compensation and state disability insurance should all be factored into your payroll.
Don’t forget to calculate your employee’s withholdings.
4. Check With the Feds
No one wants the government poking around in their business.
Processing payroll can be stressful, no matter how seasoned a professional you may be. If you are working on payroll software that manages your tax filling, then you should be in good hands.
For those doing things old-school, following your state and federal guidelines for payroll should keep you in good standing.
5. Double-Check Your Numbers
Come tax season you will be submitting your annual finding and employee W-2s. Not to mention the quarterly employer federal tax return. You’re going to want to review the information you’ll be submitting is accurate.
If you have any doubts about the accuracy of your payroll, don’t hesitate to reach out for help. Payroll services, like www.payrollserviceaustralia.com.au, have the resources and software to assist you.
Keep the Change
Payroll will save you money but can cost you time. There are plenty of online payroll services to help you stay organized. Plus, they even do the math for you.
If you want to learn how to do payroll, there are plenty of resources to assist you. Both online and in person.
Make sure to follow your state and federal guidelines when it comes to payroll.
Interested in learning more helpful tips for your small business? Check out our other articles on small businesses.
You may also like: What Does a Payroll Service Company Do? The Perfect Payroll Guide