Do you own a small business and need help with payroll?
You’re not alone. Many small businesses struggle with payroll management, but it doesn’t have to be that way.
As long as you know what employee payroll entails, you’ll quickly see that payroll isn’t such a scary topic. So, don’t let another day go by without getting the right information about how to handle payroll correctly.
Read on to learn key payroll management tips for small business owners.
1. Use a Paystub Generator
A real pay stub is a record of what you’ve paid your employees and the taxes that have been withheld from their salaries. When all of this information is reported accurately to the government, it becomes proof that you’ve done everything required by law.
The paystub generator is one of the payroll tools that make it easy for small business owners to generate real pay stubs automatically. You provide some basic information, such as how many hours employees worked, and the real paystubs generator does the rest.
The real pay stubs can be customized to reflect your company’s logo and even include personalized messages from the owner.
2. Choose a Payroll Management System
Many small businesses find themselves in need of payroll software. If you don’t have a designated payroll management system, you’re going to have a tough time maintaining your small business using payroll solutions.
When it comes to accounting software, most entrepreneurs stick with QuickBooks or Peachtree. You may be tempted to manage payroll with the same program you use for general accounting tasks. But this isn’t wise—payroll is too important to manage without its own dedicated system.
3. Hire Dedicated Employees
In some cases, you’ll choose to manage payroll yourself by taking on administrative duties in addition to your regular responsibilities as an entrepreneur. This certainly isn’t impossible, but it’s hardly ideal.
Not only can these duties distract you from growing your business, but they can also prove overwhelming if other responsibilities aren’t completed on time.
A better solution is to hire dedicated employees, which brings us to another payroll management tip for small business owners: you should focus on hiring the right people. It can be tempting to hire family members, trusted friends, or even interns because they seem like good candidates without considering whether they’re the best fit for your company’s needs.
4. Pay All of Your Required Taxes
No payroll management tip will keep the government away like following all payroll tax laws accurately and on time. This means you must pay your payroll taxes, but it also means you need to withhold payroll taxes from your employees’ salaries according to law.
Most small business owners work with an accountant or payroll service provider who can guide them through this process. But even if you’ve hired someone else to handle payroll for you, keeping abreast of changes in local, state, and federal payroll law is crucial for staying compliant.
5. Keep Accurate Employee Records
Many entrepreneurs think that payroll management doesn’t apply to their companies because they’re too small to have payroll. But the truth is that payroll applies to all businesses, regardless of size.
In most cases, you should keep payroll records for at least four years. This includes things like timesheets and payroll tax returns. You should also keep these records in a safe location.
To make things easier on yourself while you’re working hard to grow your business, choose payroll management software that makes recordkeeping easy. This way, you won’t lose important data if your computer crashes or gets stolen.
Payroll Management Simplified
There are many other payroll management tips that can help even the smallest companies get a handle on the payroll. But following these five is a great place to start.
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