Do you have a lot of medical bills that you pay on each month? Could those medical bills be deducted from your tax bill this year? I was helping my mother take care of all of her finances after my dad passed away. I didn't realize how many bills she had coming in each month for medical treatments that my dad had undergone months, even a year earlier. I started doing some research about medical bills and tax deductions. If you have medical bills, take a minute to read through this blog to gain some knowledge that can help you decide what you can do when tax time comes around.
As your business expands and you can hire employees, you must also ensure that your employees are properly paid if you want to have satisfied employees. You need a good payroll system in place so that you can ensure you don't end up facing IRS penalties.
#1: Decide Between Hourly and Salary
First, you need to decide if you want to be paid hourly or salary. Having your employees on a salary can be easier to manage, as you know what your employees will be paid each month. This can offer more consistency.
If you have hourly employees, you need to ensure that you keep track of your employee's time and compensation.
You need to carefully think about what work you want to be done by employees, as that can impact if you can classify someone as hourly or salary.
#2: Determine a Pay Period
Second, you need to determine a pay period for your workers. You want to choose a pay period and then stick to it. Common pay periods are weekly, bi-weekly, or monthly. The payday can be on a set day of the week, such as every other Monday, or it can be on a specific date, such as the 5th. You will want to choose a pay period setup that works with your cash flow and business operations.
#3: Simplify Documentation Organization
Third, you will want to simplify your organization of all the documents you need for payroll. You are going to need to keep track and organize W4s and W2s for your employees. You will also want to keep documentation of things such as tax deposits, tax forms, vacation times, and benefits in the same place. That will allow you easy access to the documents you need to work on your payroll. You may want to have one centralized location for all physical payroll documentation and save all the electronic copies in a centralized location as well.
#4: Use Software
Fourth, you are going to want to find payroll software to use. This is not something that you should do by hand. You are going to want to use a software that makes everything easier. With the right software, it will simply be an issue of inputting the correct information for day-to-day payroll tasks. Also, if you hire a payroll service, it will be easier for them to work with you if you have a software system set up for this task.
When it comes to managing your payroll, you don't have to handle it all independently. You can hire a payroll service to handle all the nuisances of this task. They will ensure all employees are classified correctly, that correct documentation is maintained, and the right software is used to simplify the task.
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