Payroll Tips for Small Businesses - Brink's Money
Payroll Tips for Small Businesses
04 Sep 2020
"For many small business owners, navigating the ins and outs of payroll can be one of the most confusing and time consuming tasks. Naturally, it’s also one of the most necessary tasks; not only to ensure your employees are being compensated properly, but also to be sure your business is in compliance with all IRS requirements come tax season.
Problems with payroll are often noted as one of the leading drivers of lower employee morale, in addition to tying up valuable company resources that need to spend time and energy elsewhere in the small business relationship. Read on to learn more about payroll tips to keep in mind to make your life easier during tax season...and for the rest of the year too!
Stay Compliant With Payroll Laws
Whether you are hiring your very first employee or you’ve been through the process a dozen times, be sure you are keeping your state’s payroll laws top of mind as payroll processes are established and revisited. Every state has its own labor laws and requires timely and accurate payment for every employee. Instead of risking costly penalties because of unknown challenges or classifications required, rely on a payroll system to properly manage regular pay, paid time off, and other benefits within the confines of your state’s requirements.
Choose Your Payroll Schedule Wisely
There are a lot of factors to consider when you are deciding how often to run payroll for your employees. Does it make more sense to go weekly, bi-weekly, bi-monthly or monthly? Every business will have a different answer. Because payroll for small businesses tend to deal with smaller numbers of employees, you have the flexibility to set a more frequent pay schedule than larger competitors may be able to manage.
Review Documents and All Data Entry for Accuracy
Data entry mistakes can cost small businesses hundreds of dollars every year. And while it’s tempting to let automated systems take over completely, there’s still something to be said about taking the time to double check that the numbers are right, the correct boxes are checked, and the personal information is spelled properly. This is especially important after an employee submits their W-2. Before submitting to the IRS, it’s worth it to guarantee all information is correct so you can save yourself time and trouble during tax season.
Research All The Ways to Pay Your Employees
So, now you know that your payroll information is accurate, you are compliant with all payroll laws, and you’ve landed on a reliable cadence for paying your employees. The last piece is the decision for how to actually get that payment into their hands. There are many different solutions to manage payroll including workforce management, timesheets, and using paycards that you control. When you work with a partner like Brink’s Money, our paycard program provides the ultimate control over when, what, and how you pay your employees so instead of becoming an ongoing hassle, all questions are resolved before they can be created. No matter which solution you choose, this is an important decision to make to take the actual payment across the finish line for your small business.
Complete Your Payroll Year End Before Your Business Taxes
This isn’t so much a tip as a requirement, but in case research hasn’t turned it up yet in the payroll processes, it’s important to note that each year, by January 31st, all employers must:
- File copies of W-2s with the Social Security Administration for each employee
- File Form 941 that states the quarterly amounts of federal and state payroll taxes, and Form 940 to the IRS.
- File Form 1099 with the IRS for any contractors whom you paid more than $600.
Automatically Make Tax Deposits
If you decide to work with a payroll company, consider asking them about possible automated payments. They can work with you to automatically make the federal and state deposits on your behalf. It’s one less thing for you to worry about knowing that any contributions will be made in compliance with the IRS guidelines.
When you partner with Brink’s Money Paycard, some of the biggest stressors of payroll for your small business disappear. We have your back as you figure out the best payroll solutions for your business’s needs. We’ll work with you to meet every requirement, and make every effort to make you as accountable for your business as possible. Call our team today to learn how Brink’s Money’s Payroll card can be a part of your small business’s total payroll solution.
More from our insights library:
Money Tips from Women to Women
When it comes to being independent and having the tools to succeed, our rights as women have come a long way in the past 100 years. Regardless of this progress, the financial playing field between men and women still isn’t balanced. That's why taking the reins of your financial future is an important power move to ensure you are looking out for yourself. As a result, we have outlined a few money tips:
The Factors That Actually Matter When Revising Your Credit
A credit score is used by lenders to determine what the risk of loaning money to an applicant is. Knowing what factors truly matter towards generating your credit score is helpful if you are interested in qualifying for the best interest rate or maximizing your score’s potential. Read on for the five most important factors affecting your credit score.
Benefits of Virtual Cards for Business Owners
As an add-on card to your existing account, virtual cards can be great for contactless pay either as a one-time deal or recurring usage. With more businesses becoming digital and online purchases being more popular than ever, virtual cards offer an array of benefits for business owners. Read on to learn more about the benefits of virtual cards for business owners.