Use this checklist to ensure payroll is done right
Processing payroll correctly is vital to small business
When you own a business, an endless amount tasks unrelated to your bottom line seem to creep up on a daily basis
Business owners likely got started in their venture because they love what they do and want to chase the dream of succeeding on their own, but so many times things like payroll, HR, insurance considerations, tax prep, etc. can take away the joy of perfecting their craft.
Our company’s goal is to take care of all the administrative work which accompanies running a business so the owner can focus on the important aspects of building their business.
We’re based right here in the Bay Area and have helped countless businesses in Pleasanton and the surrounding areas take back control of their time by offering payroll services, human resources assistance, time and attendance software and more.
One area where many owners need assistance is payroll. With so many regulations, tax calculations and data to manage, it can be a full-time job depending on the size of your company.
There are several steps to ensure your payroll is done correctly, and we’ve made a simple outline to help if you’re trying to process payroll in-house.
The first step to payroll success is to ensure you have all the correct information filed and organized correctly before getting started.
When you form a business, the first thing you’re assigned is an Employee Identification Number, or EIN for short. This tracks your federal taxes. In addition, you have to set up state and local tax IDs.
Once those numbers are filed for and ready to use, the next thing you’ll need is to complete paperwork on all your employees. These forms include a job application, W-4 and I-9 on the federal level, plus local forms where applicable.
These forms will dictate how taxes are calculated through the necessary deductions which are specified on each form. Some employees could also have wage garnishments ordered by court. These must be documented and calculated into payroll as well.
Once you have chosen a payroll schedule (weekly, bi-weekly, monthly, etc.) then it’s time to calculate an employee’s pay before taxes for the period, including any overtime.
From there, deductions must be made for each employee based on the deductions specified before. Once you have the deduction amount, subtract it from the pay before tax and issue a check or send for direct deposit.
The funds which were deducted must be paid monthly or quarterly to the appropriate governing body to ensure your business is compliant.
Once payroll is complete, keep detailed records in the event of a discrepancy. Since payroll laws do change from time to time, it’s also important to keep current on any laws and adjust your calculations when needed.
If you’re doing your own payroll and have further questions, our team of payroll experts will be happy to help.
Ready to take back control of your business and minimize your liability to risk with payroll? Give us a call today, we would love to help your business run as smoothly as possible.
Dublin, CA - Best Practices from a Livermore Based Payroll Provider / Company
