How to Complete Payroll for Your Business
Saturday, May 4, 2019, 6:00 PM | Leave Comment
Are you aware of how much time your spending processing your payroll? According to a 2017 National Small Business Associaton survey, 24% of small businesses will spend over 120 hours each year on employee federal taxes alone.
That’s not including the numerous other aspects that need to be completed each time you do payroll.
If you’re wondering how to simplify, set up, and routinely complete your payroll on time read on for more important information.
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How Do I Complete My Payroll
Depending on the type of software you use in the industry you are working in, setting up your payroll should be a relatively straightforward process.
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Step One Getting an EIN
Before you can even hire your first employee it’s important to have an EIN. An EIN stands for Employer Identification Number and is received from the IRS.
You have also heard of the EI, referred to as the employer tax ID. You will also need your EIN in order to report taxes and process all payrolls.
Fortunately, you can apply for an EIN online to help save time in the process.
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Getting Your Local Business ID
In some cases, it may be necessary for you to acquire a local or state business ID.
This will depend on the state you live and, as some states require that businesses have individual ID numbers for processing taxes. If you need a business tax ID number you’ll need to contact the state government officials directly.
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Collect All Necessary Information from Your Employees
Without the correct information, it will be difficult to process payroll for each of your employees.
However, the good news is that once you’ve collected the information, you will not need to collect it again.
Information that you need for each employee or contractor include:
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Full name
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The start and end dates of employment
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Their Social Security number or EIN
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Birthday
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Current physical address
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The details of their compensation, such as an hourly amount or project estimation
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State withholding allowance certificate
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l-9 form to prove that an employee is able to work within the US
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W-4 form for regular employees
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W-9 form for contractors that are hired on a project by project basis
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Some form of identification such as a valid driver’s license or passport
Once you’ve gathered the necessary information you need to submit your employees i-9 form in order to have it verified.
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Finding the Right Payroll Program or Software
Following steps in processing your payroll will directly determine the type of industry and business laws that apply to your unique business.
However, you want to invest some time into finding the right payroll software and apps to help simplify your payroll process.
Websites like www.paystubcreator.net are ideal for creating easy and instant pay stubs for your employees.
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Handling your business like a pro
Take be able to complete payroll is just one of the numerous tasks that are required to keep your business running smoothly. The more you know on managing a business, the easier it will be to avoid any problems from arising.
If you plan on hiring and paying employees internationally, we suggest reviewing our guide for small businesses that receive international payments.
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