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? (more…)
For thousands of Americans, the dream of being your own boss is alive and well. But of course, there are many vital aspects involved when you successfully open and operate a small business. And intense attention has to be paid to every aspect of running the business. (more…)
Pay raises make employees happy, don’t they? Not only do raises make employees happy, most small business owners are very proud of their ability to not only provide employment, but also to increase wages. (more…)
Advances in medicine and improvements in safety have increased the life expectancy of Americans. People are living longer and staying healthier as they age. This has resulted in a new group of potential workers: people who have retired from their first careers but may not be ready to quit work altogether. Retirees make great employees. (more…)
Understandably, many small business owners tighten their belts every chance they get. So in the discussion of whether or not to outsource payroll, some entrepreneurs have a knee jerk reaction and immediately say no. Is that really the wisest choice?
They often say no before they have even checked into a service like The Payroll Department.
They say no before they realize the payroll fees are very reasonable compared to the time it will take away from working to help their business grow and succeed.
In a recent taxation survey of 1500 small business owners, the National Small Business Association learned that 60% of small business owners handled payroll in-house while the other 40% chose to outsource. Those who choose to keep up with these responsibilities in-house don’t often understand the laborious efforts required of them. As a small business owner, you can expect to spend a minimum of six hours each and EVERY month on this task.
That six hours each month is required only for the paperwork. Constantly researching whether tax regulations have changed since your last payroll are not included in that six hours. When you really look at how much time you are devoting to payroll, you will discover that the amount of time adds up to nearly two weeks of time each year.
But as we are all aware, figuring hours and writing payroll checks are not the only tasks in the payroll chore. The Payroll Department reminds you of these additional responsibilities included in this very important part of small business success:
Keep up with all garnishments and employee
Withhold federal income taxes as well as other federal, state and local taxes for all
Keep up with each employee’s vacation hours, both earned and used.
File the IRS Form 941 four times throughout the year.
For the end-of-year preparation of paperwork, you are also required to file W-2s and 1099s.
Stay in the know about the ever-changing taxes with new laws and regulations.
If all you had to do was write a check, it would be easy. But payroll is more – much more – and if you make a mistake it is a costly mistake. Errors could actually jeopardize the viability of your small business.
As a small business owner, wouldn’t it be nice if payroll taxes just stayed the same from one year to the next? You would know what’s expected of you and how to manage your company’s payroll taxes every year. Unfortunately, that’s just not the case. As of January 1, 2015, the government has made some FICA tax changes that employers need to be aware of since these changes will affect your company’s ability to accurately process your payroll. (more…)
To the casual bystander, these two options may appear to be “basically the same,” however, employers should know the difference and employees have to understand how they are paid to prevent any misunderstandings. (more…)
Far too often, The Payroll Department is reminded of the incredible risk taken by entrepreneurs with a strong spirit. We drive down a street and notice some type of new small business. A few months or maybe a year later, we drive again down the same street but notice that the small business has vanished. That’s when many of us scratch our heads, wondering what the story might be regarding the “Now you see it, now you don’t” demise of small business ownership. (more…)