Owning your own small business is an exciting challenge that many people decide to take on every day around the world. Not only do you get to be your own boss, but you also get to work in a field you love and do the things you want without having a boss who hovers or barks orders at you. However, as a business owner, there are still things that may cause you stress or give you a headache.
One of the things that can cause small businesses a headache is payroll. It may be a small company, but there are still employees, meaning they need to get paid for their hard work. After you have gotten your business idea together and moved forward with hiring employees who will help you run your business, the next thing you want to think about is how you will pay them. Should a company choose to handle payroll themselves or outsource, there are still a few things business owners should know about payroll.
Here are few basic things about payroll for small businesses.
When is Payday?
Employers can pay their employees as frequently as they would like, but generally they choose between every week, every other week, twice a month or once a month. You do not need to consult with your employees about what payment schedule should be used, but after it is figured out, it will be your responsibility to calculate their wages, the amount of taxes that are to be held and issue their paycheck to them on the date they are supposed to be paid.
Paying Payroll Taxes
It is important that all taxes pertaining to your business be paid. If not, there are consequences to failing to pay them at all and even after their due date. Yes, Federal and State taxes are included on this, but so are payroll taxes, which are owed by your business.
Filing Tax Forms
As the boss, you need to know everything about your business, including who your employees are, their position and their pay. Well, the government wants to know the same. When filling out the many forms that will be required of you, you will be asked about who you are paying, the taxes you pay and a number of other details. These papers, and many others, are to be filed quarterly, monthly or yearly.
Owning your own business and being successful takes work, but it can be done. For all businesses, it is important that the owner know the basics of payroll, understand how necessary it is and why they should know about this specific area of their business. Even if you decide to outsource and hire a company to handle your payroll for you, you will still want to know when your employees are being paid, taxes are being withheld and if everyone is receiving their paycheck when it is expected. If everything is being completed when it is supposed to, the way it is supposed to, then you are on the right track.