Managing Payroll for a Growing Business
If you are like most small business owners, you are looking forward to 2015 and planning for your business to grow next year. Economic indicators offer some cause for optimism, including a job market that seems to be improving. In the midst of an improving economy, maybe your business is looking to expand and hire more employees. If so, you should consider whether or not you are ready to handle the additional employees from a payroll standpoint.
You Need a System – As your business grows, it becomes ever more important that you have a system in place to execute all your payroll functions promptly and accurately. Adding employees adds more work and makes it increasingly less feasible to do payroll without a plan. You need to establish a strategy for what exactly needs to be done, when it should be done, and who will be responsible for doing it. And, if you are hiring more employees to provide services to clients, can you justify hire an HR person or someone to full-time to handle payroll?
The Stakes are Higher – With more employees, a business has an even greater incentive to ensure that payroll is done correctly. A small mistake might be easy to contain and correct with two or three employees, but as your business grows, the effects of your mistakes (as well as the time and effort it takes to fix them) are multiplied. Can you afford to pay fines, fees and penalties due to errors in reporting? The IRS does not take errors in stride. No, errors will cost you handsomely.
Of course The Payroll Department has an easy remedy to keep the positive event of a growing business with new hires from becoming a headache for you. We can easily implement a payroll administration plan for you that is able to grow as your business grows. That way you can use those new employees to do what you hired them for instead of having to take time away from core business tasks to handle your additional payroll responsibilities. Call Teresa Ray at (317) 852-2568 to find out how we can address your growing payroll needs.
-Jessica of The Payroll Department Blog Team