For a small business, the job of making the payroll can result in some unique challenges that can slow operations down. It needs one to dedicate a lot of time and planning. Payroll is also something that needs to be ready by a certain date in the month, if the employees are to get paid, which is their right anyway. You, therefore, need to make certain arrangements that shall make it easier for you to work on them.
You need to get the business’ tax ID. When you incorporate the business, you will get an employer identification number. If yours is yet to do so, you need to look for this ID.
Another way to make it easier is to give them salaries. Salaries are easier to work on than hourly wages. To pay hourly wages; you have to calculate the number of hours each employee has worked.
You need to come up with a payroll account that is separate from any other you have. This will ensure accuracy in your calculations and allocation of funds, as well as timely payments. This will also make any future auditing exercise that much easier for you, due to the proper organization.
You need to also work on timely payment of taxes. Payroll taxes tend to get overlooked, which usually results in a huge penalty when it is discovered. You are better off ensuring you pay them on time and have the proper receipts for those payments. This way, no wrong accusation shall go unchecked and dismissed.
You can arrange for a pay stub generator. This is a tool that makes the tracking of payrolls much easier for an employer. You also get to generate payrolls for each employee easily. They then have the options of storing such records in soft or hard copy. They shall be proof that payments had already been made.
You can give your employees tax-free benefits. People tend to think that a small business is not in a position to give such incentives. But they can be made affordable when you exercise them during a pay review period. This is how you do not mess up a running payroll system. You will also find it faster and more cost-efficient. Your employees will like to have such benefits.
You may also outscore such services. This is for a busy employer who cannot find time to do it. It is also more efficient than hiring a permanent employee to be doing this for you. You will not have o worry about much, but then receive professionally done work.