It took years of hard work and dedication to turn your small business dream into a reality, and now that you’ve done that, you’ve been blessed with…even more work.
Running a small business is arguably more challenging than managing a larger one, since you have to personally hold down the fort and be a jack of all trades while simultaneously upscaling your company. It comes as no surprise, then, that trying to manage payroll along with all of the other hardships presents another challenge in and of itself. Not only can it be a hassle, but it can also be downright confusing.
Is there any easy way to handle payroll so your employees are taken care of and your company’s assets are covered? Luckily there is, and this article shows you how it’s done. Keep reading to learn more!
1. Create an EIN
If you haven’t created an EIN (Employer Identification Number) you need to do so right now. Creating an official EIN is the difference between having a small gig and being officially recognized by the IRS as a business. This also helps to make taxes and other governmental services more efficient for you and, by extent, your employees.
2. Have Your Employees Fill Out W-4 Forms
The next step to managing payroll is to have your employees fill out their W-4 forms. This is required by law, as it allows your workers to give information such as their number of dependents and any other allowances that will affect the amount of taxes each employee must pay. Have them complete the form so their tax information is up to date.
3. Choose a Payroll Schedule
One of the easiest ways to mess up your payouts is by failing to create a schedule. Having a payroll schedule helps you to keep track of payments promptly and allows employees to have a general idea of when they’ll receive payments. There are four main payroll schedules to choose from: weekly, biweekly, semiweekly, and monthly. Each has its own advantages, so find the one that works for your business.
4. Set up a Payroll System
Lastly, you need to set up a system for creating and distributing payroll, and you’ll want to stick with it. There are three main ways to set up payroll: manual (crunching all of the numbers by hand), software (plugging the digits into the computer), and outsourcing (letting another business handle the payroll). Your business finances are the best way to determine which option is the right one for your company’s needs.
Now that you know how to take care of your pay stubs, you’ll be able to create pay stub documents in a breeze. Make sure to give your employees their stubs so they – and you – can get back to building your business to new heights!
Now You Can Manage Payroll Easily
There’s an art to knowing how to manage payroll, and you’ve just learned the gist of how it’s done. Don’t forget to take a look around the rest of our site to see what other cool tips and sweet tricks we have to offer you to build up your personal and professional lifestyle to the fullest. You’ll be surprised by what you find!