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If you employ others, then payroll management is one of the most important functions of your business administration. Every year, many businesses are fined for late tax returns or make significant errors in their tax evaluations. All of this contributes to a tax gap of billions of dollars every year.
Payroll errors can have a very negative impact on the productivity of your employees. Bottom line: if you want your business to succeed, you need to have a robust and professional payroll management system. In this article, you’ll read some top tips that’ll take the stress out of the process.
Know Important IRS Payroll Dates
These dates include not only the reporting dates but also the deposit due dates for employee taxes. Your reporting dates may be annual, in which case you will need to make your submission before the end of January.
If your business works off a quarterly reporting basis, you should submit your reports at the end of April, July, October, and January (this is for the last quarter of the previous financial year). Tax deposits need to be made either semi-weekly or monthly.
Remember that reporting and making payments operate on different schedules. So don’t get them mixed up, as it’ll save you a big headache in the future.
Use the Technology
You need a robust, well-organized system that will enable you to track all the relevant information and update it easily. It is stressful trying to find important documents that seem to have evaporated into thin air. Gone are the days of filing offices with huge filing cabinets bursting with paperwork.
Use the technology and go electronic. Some amazing software programs can make managing your payroll so much easier. There are a lot of choices and a wide range of price points to suit everyone’s budget; it’ll be one of the best management decisions you’ve made.
Get Help to Customize
It doesn’t matter what industry you’re in, payroll management broadly follows similar principles. That said, you’ll need to set up your system so it suits your business’s unique needs and work relationships. For example, a common error in the setup of payroll is the incorrect classification of employees.
It is wise to get professional help at the early stages of setup or when transitioning to a new system. You do not want to introduce errors that can be further compounded over time. Whether it’s using an online paystub maker or state-of-the-art payroll software, getting the right input at the right time will save you in the long run.
Don’t Be Taxed by Payroll Management
In this article, you’ve read some top tips about payroll management for small business owners. While it is true that payroll can be very stressful and overwhelming, it must be acknowledged there are more tools and resources to help you than ever before.
Take the strain out of payroll by being clear on important IRS dates. Use the technology, and ask for help. If you want more tips and financial savvy, check out the financial and business sections of our site.