The thought of managing payroll for new small business owners may seem daunting. With new tax rules and laws changing almost every year, it can be difficult to stay up-to-date and ensure you’re filing payroll correctly for your small business. At Team Holly, we are experts in small business payroll processing and we’ve prepared a few payroll basics that all small business owners should be aware of.
Payroll Basics for Small Businesses
If you are just getting started, there are three basic aspects to navigating small business payroll. The first is deciding the frequency of pay for your employees, calculating their wages, withholding the correct amount of taxes, and finally, issuing their paycheck. The second major aspect of payroll is paying payroll taxes. This includes both the Federal and State taxes you withhold from your employees’ paychecks and the payroll taxes that your business owes the government.
The third basic aspect of payroll may be one of the most challenging for many small businesses – filing tax forms. Tax forms can be frustrating even if you are just filing your personal taxes. When it comes to business taxes, the forms get a bit more complex. It is important to accurately file these forms as the government needs to know who has been paid what and what taxes have been paid. These forms are typically filed quarterly.
Methods of Managing Payroll
There are several ways to manage your payroll as a small business owner. The best method depends on the unique situation of your small business:
- Manual system – This involves manually calculating payroll. Though this is the most affordable, it also takes the most time and allows for the highest chance for errors, especially if you do not have experience managing payroll.
- Payroll software – This is a popular option for those who are inexperienced with payroll but still want the ability to have control over the process. The biggest challenge with this system is that you still have to report and file taxes yourself.
- Accounting Services – Accounting services can help with payroll, as well as payroll tax filings. The accountant knows the business and is experienced with handling payroll and tax responsibilities. This method creates an additional expense.
- Full service payroll – Hiring a payroll service saves time by allowing you to delegate all payroll and tax responsibilities to the professionals. This option, like hiring an accountant, creates an additional cost.
Choosing the right payroll system for your business will depend on how much experience you have handling payroll and payroll taxes. Though hiring a professional may create an extra expense, this investment is worth it for many small businesses as they are able to avoid costly mistakes and spend their time focusing on their core business.
Small Business Payroll Services in Florida, Georgia, and Beyond
Need help managing your small business payroll and taxes? Our team has over 40 years of accounting, tax, and financial management expertise that we love using to help our clients achieve their business goals. Our clients span the gamut; we help small, medium, and large-scale businesses with their payroll and since we are a virtual accounting firm, we can handle your payroll from anywhere!
Contact us today for more information about our payroll and tax services.