A critical function for every business is managing payroll. Payroll should not be a headache for a business owner nor your employees. You don’t want to get yourself in a legal bind because payroll and payroll taxes need to be accurate and paid on time. And, you want your employees to say, “I’m happy how I get paid.”
Why is Payroll Important?
First, employee compensation is a critical factor in hiring and retaining dependable employees. Second, pay has a significant impact on employee morale. Poor pay or poor payroll practices will undermine employees’ attitudes regarding the integrity and financial health of the business. Third, incorrect handling of payroll records severely hampers accurate financial reporting and managing business finances. Fourth, payroll needs to be handled correctly to satisfy legal requirements and payroll taxes processing.
What are Payroll Taxes?
Every business is required to withhold an amount from each employee wage payment for Federal and State income taxes, unemployment, Social Security, and Medicare. In addition, the employer also contributes an amount to payroll taxes.
Each Business Owner Decides How to Handle Payroll and Payroll Taxes
Here are the key options:
Handle payroll yourself or hire an employee to do so. This entails a lot of activities, including:
Having all employees complete a W-4
Choosing your payroll schedule
Drafting paychecks, delivering paychecks or making direct deposits to multiple banks
Handling new hire reporting
Providing payroll summaries
Managing and recording vacation and sick time
Calculating and withholding payroll taxes
Filing tax forms and W-2s at each year’s end
Hire a payroll service, which will take many of the extensive payroll activities off your shoulders.
Hire a professional accounting firm that will handle the payroll and tax functions.
Hiring a Professional Accounting Firm
Choosing the right accounting firm can be a valuable asset to your business. Consider these suggestions:
Think about location. You have many options, local or not, but it is often wise to select an accountant that you can work with face-to-face to review your accounting data, meet with you regularly and address all your needs.
Choose relevant experience. It is often wise to choose an accountant that has experience in your industry to understand any industry quirks.
Understand their processes. Carefully review how they will treat your records and fulfill your accounting needs. Ensure accurate and complete payroll tax handling.
Evaluate compensation and savings. Know how your accountant will be compensated and determine how they can save you money by helping you run your business efficiently.
Find a proactive partner. One that will look forward, identify opportunities, and help you grow.
Choose Expert Accounting Assistance
Contact Busch CPA, serving the Greater Chicagoland area. The accountants at Busch CPA are dedicated advisors for progressive business minds. We provide full-service bookkeeping, payroll, tax, audits, and reporting, including finance and cash flow analysis. We help provide sound, informed decisions to drive business growth.