Payroll processing can be one of the most time-consuming and complex parts of running a business. It can be a full-time job for businesses to keep apprised of new employer payroll taxes and employment laws. Intelli Bookkeeping is changing the game of payroll for small businesses. We are happy to assist you with payroll from start to finish, but it is helpful to educate yourself on the process beforehand. Here is a brief rundown of payroll basics to get you started.
The first step in getting your payroll in order is to gather information regarding your employee. You will likely need at least one or a few of the following documents:
Once you have this information, you will have a much clearer idea on how to run payroll for this particular employee and understand how to apply applicable employer payroll taxes.
While most businesses pay their employees every two weeks, or bi-monthly, some may choose even more frequent payment or choose monthly paychecks. Whichever method you choose, this will need to be clearly communicated to the employee.
In order for an employer to calculate net pay, it is based on gross income minus deductions and withholdings. Each state has different standards and rules associated with withholdings a and deductions. Let your employer know if you have any additional deductions such as alimony or spousal support, as that will impact your net wages. With new legislation in 2019, employer payroll taxes will be impacted as well.
Once an employee has been paid and the correct withholdings are taken out, employers are on the hook for paying payroll taxes. These employer payroll taxes need to be paid on time, otherwise, the business may have to pay some serious penalties. When you have a virtual team on your side, like Intelli Bookkeeping, submitting payroll and the associated taxes is effortless.
Are you ready to hand-off the chore of employer payroll? Contact Intelli Bookkeeping today . We are ready to help you manage your business like a pro.