Good planning and record-keeping can increase a small business’ efficiency and minimize its legal liability in processing payroll. Whether it is outsourced or done in-house, there are several options for finding a Payroll Solution in Quincy MA in an effective, cost-efficient manner.
Get an EIN and other ID Numbers
The EIN, or employer identification number, allows the IRS to verify compliance and track payments. The EIN can be obtained by calling the IRS at (800) 829-4933. Some local governments may require special ID numbers as well.
Choose a Payroll System
In setting up a small business, choosing a payroll system is one of the manager’s most important decisions. There are two main options: in-house or third-party payroll services. Owners can start by asking local managers what they use, and what they’d recommend.
Understand Relevant Payroll Tax Laws
Regardless of a business’ size, owners should understand tax law and compliance rules. Tax laws change every year, and business owners should read IRS Publication 15 for the most up-to-date information.
Classify Workers Properly
Some businesses use employees and contractors, and it’s important for owners to understand the difference. A worker’s classification can affect payroll matters such as unemployment tax, Medicare and Social Security withholdings.
Business owners should decide ahead of time how they’ll handle vacation time, overtime pay and retirement account contributions. While vacation pay isn’t a legal requirement, many businesses offer it. A local payroll service like website can simplify the deduction process.
Keep Good Records
Small business owners should have a signed W-4 form on file for every employee, and these forms should be kept for at least three years after an employee departs. Copies of all tax forms and W-2s should be retained, as should records of tax deposits made by owners or accountants.
If a company is growing and can no longer handle payroll internally, outsourcing is a viable Payroll Solution in Quincy MA. However, before getting quotes from processors, the business owner should check with their financial institution. Some banks offer payroll processing for free or at a discounted rate, and it may be justifiable to move one’s business to another bank if that institution’s payroll processing fees are lower than with other options. You can also visit them on Facebook for more information.