So you’re thinking about opening a small business. Finally, you have found the perfect location. You have developed a strong business plan. Your family supports your decision to become your own boss. Have you thought about everything?In your head, you figure that you will hire at least 20 employees. You will hire a person to help with marketing. You will also hire a receptionist, a couple of sales people, a few production workers and another couple of people to work in shipping and receiving. You need a human resources department and three delivery truck drivers.
You’re thinking about everything from advertising to website development, employee interviews and training and vehicle maintenance. Occasionally, when there’s a threat to providing excellent customer service because orders are backlogged, you plan to also hire a few contract workers. Your workplace will be buzzing.
In the midst of it all, you decide that you will save money by doing your own payroll. You will surely find a way to squeeze in time to complete that task while keeping up with other responsibilities. Instead of attending the kids’ Saturday soccer games, you will be at the office, focusing on payroll. Before you make the do-it-yourself decision, The Payroll Department suggests that you consider the following:
- Do you have time to consistently keep up with employees who have requested or are currently absent from work do to maternity or paternity leave?
- Do you understand the paperwork differences involved with full-time, part-time and contract employees?
- Is the difference between employees and contract workers in the eyes of the IRS crystal clear to you?
- What about keeping up with which employees qualify for which benefit packages and when they are eligible for these benefits?
- Don’t forget about holiday pay and holiday accrual for every employee.
- You must also record information about new hires and employees who are leaving.
- Do you understand payroll tax codes?
- How about tax exemptions?
- Don’t forget the ever-changing rules in local, federal and state tax laws. Can you keep up with them?
If you had an anxiety attack while reading this list, never fear. The Payroll Department is here. We will save you from potential fines due to errors in paperwork. We will even save you from the headaches of producing organized and accurate records during an audit. Don’t forget too, that by outsourcing payroll to The Payroll Depart experts, you can be on the bleachers to watch your kids play soccer every Saturday. Consider not only what you dream will happen, but what the reality of owning and operating your small business really requires. Be prepared, proactive and outsource critical tasks like payroll to experts!
-Sherri of The Payroll Department Blog Team