Dealing with payroll taxes can take up to five hours per pay period for small business owners across America.
Need a hand managing payroll deadlines and avoiding late payments?
The biggest part of keeping your staff paid on time involves having the right system. Check out our tips on building payroll systems for small businesses below!
1. Get the Right Info Upfront
Make it a habit to get the right information from independent contractors and employees upfront. This includes everything from:
- Proof of identification
- EIN/social security numbers
- W-4/I-9 tax information
That way, you won’t have to scramble during “tax season” this year. How smart!
2. Classify Your Staff Correctly
If you’re running your own small business, it’s best to classify your staff correctly the first time around. For instance, some may simplify the hiring process by placing seasonal and temporary staff under the “independent contractor” category. However, this might be a mistake due to work arrangement factors such as your:
- Physical workspace
- Employee insurance
- Provided equipment
How can you avoid this? Consult a tax expert ASAP.
3. Manage Payroll Tax Deadlines
Next, be sure to keep a close eye on your payroll tax deadlines by closely documenting things like:
- Withheld paycheck funds
- Unemployment taxes
- Social Security and Medicare
Then, send them to the right entity on an annual or quarterly basis. Simple as that!
4. Try Going Paperless For Taxes
Think about it this way. When you write your employees a physical check, you’re also paying a few bucks for the cost of:
To prevent this, we highly recommend that you transition to a paperless, electronic payroll system. That way, you’ll make sure your staff gets paid on time, no matter if there is a weekend or holiday around the corner.
5. Keep Your Payments Automated
FYI: There are many different ways to keep your payments automated. Whether you run a large or small business, you should be able to expedite your payroll system with ease by removing redundant data entries and human errors. Once this is done, you can even make your payments mobile so that you can handle your payroll duties with ease!
6. Create Self-Service Time Tracking
Tracking attendance for employees can be very time-consuming for employers, so creating a self-service time tracking system is definitely the best way to go. That way, it’ll be easy to see essentials like the:
- Time earned to date
- Time off that has been redeemed
- Amount of paid time left
Pro tip: It pays to do your research first (literally!)
Start Building Payroll Systems Like a Pro
Ready to start building payroll systems?
From automated payments to self-service time tracking, we’re here to help. Not only will we help you pay your taxes on time, but we’ll also help you save the environment by going paperless. How can you beat that?
Curious about common payroll data tricks?
Take a look at the rest of our blog today!