Did you know that there are over 30 million small businesses in the USA?
Small businesses require efficiency more than any other type. They usually have a smaller number of in-house staff who are handling multiple tasks.
If you want to keep your workers happy, you are no doubt interested in creating payroll systems that ensure that they get their salary on time.
How can you create an efficient system for your business? Why not take a look at our top tips.
Table of Contents
1. Know Who Is a Freelancer and Who Is an Employee
In 2020, the lines between freelance workers, independent contractors, and company employees, may have blurred thanks to the prevalence of home working.
You will need to ensure that you have a clear policy regarding this and that your payroll is adapted to match. Each has its own individual rights as regards payment timeframe and taxes.
If you need to create paystubs to document the payment of outside workers, you may be able to use Paystub creator found at the following URL: https://www.paystubcreator.net/stub-sample-templates.
2. Manage Employee Paperwork
When you are sure who your employees are, you will need to create a system for managing their individual paperwork.
As an example, you likely know that new employees will need to complete a W-4 Form (Income Tax Withholding Form). This will allow you to withhold the correct amount of tax from their paycheck each week.
3. Create a Schedule
This might seem simple and obvious, but creating a timeframe for managing each part of the payroll process will save you time. It also helps you to communicate with each type of worker regarding when they will be paid.
Some states have created legislation that will impact your schedule by requiring monthly or bi-monthly payment of employees.
4. Diligently Keep Records
You will not only need to maintain paperwork for each company employee, but you will need to research the retention policy for each document. Federal law will require that you retain certain documents for a minimum period of time.
W-4 forms are retained for the duration of the worker’s time with the company. However, did you know that you need to retain them for 3 years after they have departed?
You will also need to retain W-2 Forms, copies of filed taxes, and associated documents.
Payroll is more than simply paying salaries. An efficient system can save time by helping you retain the documents you will need at a future date.
Creating Payroll Systems That Work for You and Much More
In the financial downturn of 2020, businesses that are able to create efficient systems have a major advantage. Creating payroll systems that are efficient can help you to retain modest staff levels whilst still accomplishing the same work according to the required schedule.
If you are interested in working efficiently, you may be interested in our blog articles. We research subjects related to business and technology and bring it to you via our feed. Why not take 5 minutes and take a look today.