Not only is payroll often a business’ biggest expense, but it is time-consuming to manage. Payroll expenses can be tricky, with many laws at the local, state and federal level. These five tips can help you to manage payroll expenses so that your employees are paid accurately.
Allow Employee Access
Allowing a level of employee access makes it simpler for you to manage payroll. You can allow employees access to update their number of dependents, change their mailing address or update their marital status. This reduces paperwork and saves your time.
Automate Tax Calculations
Use a spreadsheet, database, app or software that allows for all types of deductions. Make sure you know whether you need to do quarterly estimates. Keep in mind that your payroll may involve child care credits, health savings accounts, insurance benefits deductions, life insurance deductions, child support payments, voluntary withholding, retirement plan contributions, flexible spending accounts and more. Make sure that the system you set up or use can accommodate all of these different aspects.
Use Software or Apps
There are many electronic payroll solutions that you can consider. These systems make it easier to manage your payroll expenses because they automatically perform complex calculations for you. These systems can also deliver W-2 and 1099 forms to your employees and contractors at tax time. This helps to ensure that your business is in compliance with federal and state tax laws.
If you are a small business owner, trying to manage all of the payroll expenses on your own can be challenging. You may not have the time to delve into tax law and all of the local, state and federal requirements for payroll management Consider hiring an accountant or payroll specialist. You could also work with an electronic or bricks and mortar payroll service to handle it for you.
Choose payroll solutions that integrate multiple functions, such as vacation time, sick leave and personal time. This allows the system to automatically adjust for missed work hours. You may also wish to choose payroll solutions that are compatible with your other accounting software systems. If you are planning to grow your business, be sure to choose payroll solutions that can accommodate more employees.
These tips will help your business to fulfill all legal obligations related to payroll By choosing an electronic solution for your payroll, you can als hae the peace of mind that comes from knowing your payroll taxes are properly handled. These solutions can ultimately save you and your employees time.