Compliance Is Key
In today’s business environment a key to success is to stay under compliance with State and Federal regulations, along with being able to streamline business payroll and HR in a seamless and efficient web-based system. Often small to medium size companies don’t realize that with hiring one employee, they now have the same responsibilities as a company that has 1000 employees in terms of hiring, processing corrective action, terminations etc.
Tax Liability and Reporting
And, when it comes to tax liability, it is crucial that business owners understand that when paying their employees, they are now responsible to file and report taxes on a weekly, bi-weekly or monthly basis depending on their payroll. In the event they neglect their tax reporting responsibilities, companies are vulnerable to being penalized from several tax agencies.
Here are 6 factors a business needs to consider around the issue of creating and engaging a team toward the fulfillment of its overall mission:
1) Hiring Employees
A big part of growing your business is hiring employees. But are you aware of the proper procedure needed in order to hire an employee?
2) Payroll Management
Payroll management is a little bit more than writing checks. It involves learning how to calculate gross thru net factoring in the employee’s tax filing status, benefits, vacation, over time, sick and unpaid time off. It’s important to have the right software in order to customize reports by industry.
3) Time and Attendance
Having a time and attendance solution is key to not only keeping track of employee hours worked, but is also a way to minimize costly errors and eliminate buddy punching.
4) Workers Comp
In today’s world workers compensation is a mandatory but an expensive necessity. Traditional policies demand a high 20% to 30% down payment and long audits at year-end. Another option is “Pay-As-You-Go”, eliminating large down payments and making it easier during the year end audits.
5) Selecting a Payroll Provider
The first step is to find a user-friendly web-based platform that can guide you step-by-step in how to add employees, change their demographics, calculate payroll deductions, offer direct deposit and other benefits. You’ll need a provider who is at home with your time and attendance system, workers comp policy, accounting software and can work directly with your accountant or CPA.
6) How Employees Benefit When You Outsource Your Payroll
Unlike traditional in-house processing where all is done manually, when working with the right provider employees benefit from having direct deposit, online check stubs and an employee self-portal where they can easily manage their personal information such as address, direct deposit account, and HR documents.
Reflect upon the following as you formulate your team building strategy.
- Does your business have, or plan to have employees?
- What is your primary purpose for having employees?
- How will you free yourself from administrative issues in order to focus on fulfilling your primary purpose for having employees?