If you are new to owning and operating a small business, the thought of getting payroll up and running, might feel like a large mountain to climb. However, the process doesn’t have to be. When you break it down into steps and take it one step at a time, you will find that it is something that you might be able to handle. Mark Dicus & Company is here to break down the process of setting up payroll one step at a time.
Steps to Follow When Setting Up Payroll
Just like most things, when you break down payroll and take it one step at a time, the task doesn’t seem quite as daunting. Here are the steps that you should follow to set up payroll for your small business:
– Employer Identification Number: The first thing that you’re going to need is an employer identification number (EIN). This number is given to you by the IRS and is used to identify your company. This is free and won’t cost you anything.
– State ID Number: The next thing that needs to be done is to register with the state and get a state ID number. There are nine states that don’t have state income tax, so if this state is the one you live in, you don’t have to complete this step. Make sure you’re aware of the requirements your state has.
– Independent Contractors vs Employees: You need to determine whether or not the people that are working with you are independent contractors or employees. You can turn to the IRS and use their guide to determine which category the people working for you fall into.
– Choose a Payroll Schedule: Take a look at your business’s cash flow. This can help you determine the payroll schedule that you want to use. You can pay employees weekly, biweekly, monthly, and even semimonthly. The most common is biweekly.
– Create Policies: You need to create policies for your company as well. When making these policies, make sure that they follow the legal rights of your employees. This will include things like time off policies, overtime, and non-mandatory leave.
– Payroll System & Management: The next thing to consider is what payroll system you want to use and the possibility of hiring someone to help you manage it. There are many laws and regulations that need to be followed, and you want to make sure you choose someone that knows the ins and outs of the process.
– Paperwork: Lastly, make sure that your employees fill out the proper paperwork.
Bookkeepers, Accountants & More in Summerlin, North LV, Henderson, Lone Mountain Village & Greater Las Vegas, Nevada
If you are struggling with the payroll process and confused by the laws and regulations, you can turn to Mark Dicus & Company to take care of it for you. We will handle your payroll and all the tax filing that goes along with it so that you can focus on other aspects of your business. Call us today!