Employee Payroll Basics, Methods and Common Pitfalls
If your small business is growing any you are considering staffing up or hiring the first employee, payrolls might give you a headache. It’s so much easier when you understand the payroll basics, methods and common pitfalls.
Pay Day Every week or every month? Calculate the wages and withhold the appropriate amount for payroll taxes. On an agreed upon schedule issue their paycheck.
Payroll Taxes Clearly, you need to pay payroll taxes your company owes, as well as the federal and state taxes withheld from each employee’s paycheck.
Tax Form Filing Although it’s a daunting task, you simply need to fill and file tax forms in order to let the government knows about taxes you’ve paid and other relevant details. While most small business file tax forms quarterly, some do it yearly or monthly.
Deadlines It’s a business owner’s responsibility to keep up with all tax deadlines. There are many payroll products that can help you avoid missing deadlines by automatically sending reminders when certain taxes are due.
Errors Withholding, wages, taxes, hours, medical care benefits and other things all have to be calculated and it can get rather complicated. Luckily, there are many software options and services (such as employee payroll services Singapore) to help you not to make these errors.
Penalties If you miss deadlines or make errors when calculating, you have to expect penalties. Hiring someone to take complete ownership of all your payroll and tax responsibilities is worth considering. You can also make use of companies offering these services).
Manual Use a spreadsheet and a calculator (or just a pen and paper).
Software In a few clicks you can run employee payroll yourself with the help of the right software.
Accountant Hire someone experienced to help you with your payroll and tax filings.