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Even if the payroll process is completed every two weeks, ensure that the paydays are on the 1st and 15th so that your employees can comfortably afford their own expenses without worrying about late fees.
Arranging a more efficient payroll system could be difficult to do. After all, if you are a small business owner or a start-up entrepreneur, you have plenty of other concerns to address every day. That said, don’t forget to take care of your employees! While the traditional paycheck or paystubs offer concrete proof of your workers’ efforts, sometimes, changing to a direct-deposit method is quicker, easier, and just makes more sense. Here are some good pieces of advice to heed when you are looking to revise or update your payroll structure!
Provide Your Employees with W-4 Forms
Provide your employees with relevant W-4 forms. This form is issued and received by the IRS. It keeps track of the dependents and allowances that your employees claim on their taxes. Every new-hire employee should get this form, as should longtime employees who want to adjust their withholding preferences.
Set Up Federal and State EIN
No matter how big your business is, you are obligated to apply for Employer Identification Numbers, or EIN, for both state and federal authorities. Any companies that carry paid employees need to have this requirement taken into consideration before conducting business – so you’ll need to interface with the Internal Revenue Service. Submitting Form SS-4 will help expedite the process, but you have many options when you need to send it to the IRS. You can file online to get the fastest turnaround. However, you may be more comfortable filing via phone, mail, or fax.
Establish a Predictable Pay Schedule
Your pay schedule should align with your revenue cycle and when your own expenses are handled. That said, establishing a predictable pay schedule will help improve company morale. Even if the payroll process is completed every two weeks, ensure that the paydays are on the 1st and 15th so that your employees can comfortably afford their own expenses without worrying about late fees.
Perform Accurate Paycheck Calculations
How your organization is structured will heavily impact the way your paychecks are calculated, finalized, and delivered. Hourly pay differs from salary pay, and then you will also have to account for commissions and overtime. Luckily, payroll software or third-party payroll managers can help simplify matters.
Trust the Professionals at the Harding Group
Unlike other accounting firms, The Harding Group, located in Annapolis, MD, will never charge you for emails or phone calls and strive for open communication with our clients. Whether you are interested in business advising, tax preparation, bookkeeping and accounting, payroll services, Training + support for QuickBooks, or retirement planning, we have the expertise and years of experience to help. We serve clients in Annapolis, Anne Arundel County, Baltimore, Severna Park, and Columbia. If you are ready to take the stress out of taxes, contact us online or give us a call at (410) 573-9991 for a free consultation. For more tax tips, follow us on Facebook, Twitter, YouTube, and LinkedIn.