A DIY Guide on How to Do Payroll Successfully
Payroll preparation is a crucial administrative task that every small business owner should know how to handle. If you have a team of workers, it is necessary that you do payroll every month. Payroll preparation is not usually a headache for well-established businesses since they can afford to outsource the services from the experts. Since you cannot afford to outsource payroll services, you should cut on cost by learning how you can do it yourself. Handling payroll every month can be a headache, but if you know a few tips, you will not have to worry about hiring an expert to do it. If you choose to do it yourself, you should be careful not to make any mistakes in your paychecks. The article herein is a step-by-step guide on how to prepare payroll yourself.
A crucial step to take when doing payroll yourself is getting your employees to fill W-4 forms. In the case of independent contractors, you will need W-9 forms. In the W-4 forms, your employees will get to include all their allowances. It is a way of protecting your employees from paying more tax. As a business owner, you will need to have EIN to inform the Feds and IRS about the existence of your business. In this site, you will read more info. regarding the steps for getting an EIN for your business. EIN is usually considered as the social security number of the business.
Creating a payroll schedule can help you do your payroll smoothly. Once you have EIN and tax information documents, it is time that you pick the most appropriate day to pay your employees. The decision regarding the payment schedule for your business should be influenced by what you are aiming for. Once you settle for a payment date, you should strike to get the money ready on the date. There is also the option of involving your employees when deciding on a payment plan. The most challenging step in preparing payroll is calculating gross pay and deductions for your employees. This is the step that most employers make costly mistakes. Luckily, there are online tools that you can use to calculate both gross pay and deductions for your employees. On this site, you will discover more about the ways of doing gross pay and deductions calculations.
Finally, you should file your tax forms. As a business owner, you have the mandate to withhold correct tax amounts and remit to the Federal government. Filling tax forms will ensure that you don’t get into problems with the IRS. Delaying in remitting and filing tax forms usually attract huge fines; hence you should do it on time. As a business owner, if you want to do payroll yourself, you should follow these steps from now!