Did you know that a small business can end up having anywhere from 100 employees to well over 1,500?
As your small business continues to grow, there’s no getting around the need for payroll help. If you’re not prepared ahead of time, it can end up creating a financial disaster.
Are you wondering how it should be done? Keep reading to learn all about how to do payroll for your small business.
1. Ensure Your Paperwork Is Accounted For
When it comes to payroll for businesses, every single one of your employees is going to need the same several documents on file. For example, you’ll need to have their USCIS (U.S. Citizenship and Immigration Services) Form I-9 which demonstrates that the employee can legally work in the States.
You’ll also need them to fill out their own W-9 IRS forms and submit them to your payroll office. That way, you’ll know the exact amount of federal income tax that will need to be subtracted from their pay. If you live in a state that has income tax at the local level, then you may need a state W-9 form filled out and on file as well.
Don’t forget about all the paperwork for enrolling in benefits, including those related to healthcare and retirement.
2. Pick a System for Payrolling
While small business payroll may seem easy at first, it will get more and more complicated over time. That’s why it’s not a good idea to complete these tasks manually.
Instead of doing it on your own, payroll software can simplify the process from the very beginning. Not only can it crunch numbers in seconds, but it can also keep track of all your employees and their hours with ease.
3. Decide on a Schedule
There’s a variety of ways you can go about paying employees. You can pay them week by week, once every two weeks, or on two specific days each month. While these are some of the more common schedules, you should think about what’s most convenient for your employees and your business as a whole.
However, there could be rules and regulations specific to your state, so it’s worth looking into those before you begin payrolling. Overall, the process can turn out perfect if you hire a knowledgeable team to handle everything on your behalf.
4. Direct Deposit
A lot of businesses have given their employees the option of direct deposit rather than dealing with paper checks, for instance.
In order to establish this, you’ll need a payroll bank account and a direct deposit form for each employee.
Now You Know How to Do Payroll
Now that you’ve learned all about how to do payroll for your small business, you can make sure your finances are in perfect order. Once tax season rolls around, this will make your job much easier.
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