As a business owner, you’ve got no lack of tasks on your plate at all times.
You’ve got to consider, hire, and train staff, which includes management positions. There’s planning and strategy, marketing and sales, and customer service. That doesn’t even include the day-to-day operations that keep your business afloat.
Finally, you’ve got small business finances—a category all its own.
Within this category, you’ll find payroll, which is one area where your mistakes could truly cost you. In fact, up to 40% of small businesses like yours get fined about $850 every year for improper payment of payroll taxes, indicating a discrepancy. Of course, there’s room to go up from there, prompting business owners to get savvy about payroll.
Start with these tips—unless you’ve got extra money in the budget for avoidable fees.
1. Document Everything
Before you can analyze your payroll process, you need information about it. This information allows you to form metrics, which gives you something to analyze.
For example, what are your strong suits? Where are your weak links? From there, you can improve your process or double down on something that’s working.
Another reason for the strict organization of documents is if you or an employee discovers a payroll error. Having a paper trail leading up to it can help identify any problems or kinks.
2. Use a Paystub Maker
One of the best payroll softwares is the paystub maker, a program designed to make payroll as simple and error-free as possible.
Most of the errors in payroll come from data entry, which is done by humans—leading to human error. When data is inputted by a computer, mistakes are caught and corrected before anything is official.
Simply input the necessary information, such as employee and salary details, and choose a template that works for your company. If you can automate the process in any way, you’ll save time and money.
3. Learn Your State’s Payroll Rules
The Department of Labor has state labor laws that vary by location. Familiarizing yourself with your state’s laws can keep you informed and educated and allow you to be a transparent business owner.
These state labor laws cover topics such as minimum wage, the minimum wage for tipped employees, payday requirements, and more. They even discuss minimum meal periods and minimum paid rest periods, allowing business owners to follow labor laws as well as payroll laws. To make sure that your company is complying with all the rules & regulations when it comes to handling employees wages, hire a proficient PEO payroll service provider.
Small Business Finances Require Their Due Diligence
If you’re struggling to keep your business’s finances in check, it might be time to consider outsourcing.
Managing your small business finances might mean doing it yourself, or allocating the work to someone more experienced. That all depends on your knowledge and expertise.
For more business news like this, you know where to turn. We’ll see you back soon!