While biweekly pay periods are very common, they may not be the best option. Every year, at least 12 million Americans have to take out payday loans, with high-interest rates. If those workers had access to a more flexible payment schedule, they could afford to pay for unexpected expenses, instead of taking out a costly loan.
The more you know about payroll, the easier it becomes to keep up with the latest trends. If you’re wondering, what is payroll? Then you’re in the right place!
Read on to learn payroll tips for business owners, employees, and entrepreneurs.
1. What Is Payroll for Small Businesses and Freelancers?
What is payroll for small business owners? Whenever you employ contractors or employees, you’ll have to complete payroll.
Even if you’re just working for yourself, it’s a good idea to keep payroll records of your earnings. Today there’s a lot of online options that can help with payroll.
2. Information Payroll Companies Want
If you hire a payroll company, you will need to gather a bit of information about your business. Here are some of the key pieces of information you’ll need to set up payroll:
- Company legal name
- Company address
- Employer identification number
- State tax withholding ID number
- Local tax ID numbers
- State unemployment number
Gathering the information above will help speed things up when you reach out for help. Moving on, you’ll also need to know all of your employee’s information.
Next, make a list of all your employee’s names, addresses, and SSNs. Next, determine your employee’s tax filing statuses, details on deductions, and contributions.
While this may sound like a lot, don’t worry. Once you have things set up properly, you can get back to focusing on growing your business.
3. Pay Rates and Registers
Finally, you’ll need to know information about your pay rates and tax filings. For instance, at what rate are you paying your employees, and how frequent is the pay period?
Next, what are your payroll registers for the current year, list them by date. Moving on, provide all employer taxes for the current year, and again list them by date. Last but not least, provide copies of your tax filings for the current year, including local tax returns.
Account for Everything
There you have it! The next time you hear someone ask, what is payroll? You’ll already know the answer.
What’s 1 of our payroll tips you’re going to leave remembering today? Is it suddenly obvious how helpful it could be to have online records of your payroll? Or were you happy to learn how to prepare for setting up payroll with a third party?
We hope you’ll use all of the information you read in this article to help your business thrive. For more useful tips, check out the rest of this site.