Maintaining accurate payroll records is essential to running a healthy business. If you have one or more employees here are a few steps you need to make sure you are following
- Determine your payroll cycle. It can be weekly, bi-weekly, monthly or whatever frequency you decide. Just be consistent.
- Calculate employee wages for every pay day.
- Withhold the proper taxes and employer contributions. Among them are:
- Federal Income Tax
- Social Security Tax
- Medicare Tax
- Health Care and Other Benefits (depending on size and what’s offered)
- Make sure you are tracking the right amount of hours worked, wages earned, taxes and withholdings. It would be in your best interest to avoid IRS audits.
- Review your payroll records with an Accountant for accuracy. There are software programs available to help you with tracking the information but it is always to have an expert validate that the calculations and withholdings are correct.
- Submit all information to the IRS on time. Make sure you adhere to deadlines to avoid penalties
Engage Forward LLC assists business owners with evaluating payroll methods and services that are most appropriate for your business.