It’s thrilling to own and manage a business, but when it comes to payroll management, you realize how daunting things can be. Any mistake on payroll can create serious financial trouble and directly impact your taxes. Managing payroll on your own means you have taken on the responsibility to withhold and deposit payroll taxes, among other things. So, here’s a concise guide to understanding how to manage payroll for all small business owners.
Collect payroll information
If you’re a small business owner, the first thing you need to learn is setting up a payroll. To do this, you need both the employer and employee information.
- Employers need to apply for an Employer Identification Number (EIN) before they start hiring. EIN is necessary for tax documentation purposes. Then, you’ll need to register with the Electronic Federal Tax Payment System (EFTPS) to pay federal taxes.
- Depending on your state, check whether you need employer ID numbers for state and local governments and register at the state’s new hire reporting website.
- Decide the pay frequency and the payment method beforehand. You might need the employees’ bank account details to make the payments.
- Know your employee’s salary status, for which you must check whether they must be paid overtime wages.
Collect employee information
Before an employee starts working, they need to complete certain paperwork:
- Existing employees must fill out Form W-4, which is the Employee’s Withholding Certificate and determines the federal income tax amount you need to withhold from them.
- New employees need to submit Form W-4 and Form I-9, which is Employment Eligibility Verification that confirms their eligibility to work in the country.
- Collect information on benefits like health insurance and retirement plans so that you know how much they want to contribute to these accounts.
Choose a payroll system
- Manual payroll: It’s a cost-effective way to manage payroll, but it’s susceptible to serious mistakes throughout the process. You are responsible for figuring out the tax amounts to withhold and for sending taxes to the appropriate agencies on time.
- Outsourcing payroll: This is the best payroll management method for a small business owner to save time, but it can be expensive. You can hire a payroll consultant to help withhold and deposit taxes.
- Payroll software: This is the most preferred system for small businesses. It’s affordable, accurate, and quick, and you can choose from several payroll software for small businesses available in the market.
Once you’ve chosen a payroll system, you’re ready to start managing it. Running payroll is always the same process: enter the employee work hours, account for any overtime, withhold taxes, and pay via the chosen method.
Handling taxes is another important aspect of learning to manage payroll for a small business. You must withhold, deposit, and report specific taxes from each employee’s gross wages. These include:
- Federal income tax
- State and local income taxes (if applicable)
- FICA tax (Social Security and Medicare taxes)
You must keep payroll records for each employee, including documents like the employee’s Form W-4, total hours worked each workweek, and pre-tax and post-tax wages. You can check with the Department of Labor (DOL) for information related to payroll record retention.
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Here’s how to improve blood circulation with healthy lifestyle habitsRead More
Blood circulation is the continuous movement of blood in the different parts and organs of the body. The circulation of blood takes place as a result of the heart’s ability to pump out blood at a constant rate. An individual dies when the heart stops pumping out blood and blood circulation comes to a halt.
Poor blood circulation can bring about several health conditions. These include blood clots, cardiovascular diseases, headaches and memory loss. This is why it is essential to strive and improve blood circulation. Here is how to improve blood circulation by practicing the following activities:
Hydrate the body – Today, most people live a busy lifestyle and tend to ignore the underlying need of the body that is hydration. The organs of the body require being well-hydrated to function properly. Also, blood is made up of a high percentage of water. Water also flushes out toxins from the body. Thus, you should continue to sip on water through the day.
Stress management – High-levels of stress has a significant impact on the blood circulation. When one encounters too much of stress, the body puts up a fight. This affects the functioning of the central nervous system and this limits the flow of blood through the body. Stress should be managed by indulging in activities that make you happy, such as painting or riding a cycle. Yoga and meditation too are effective practices that are found to improve blood circulation.
Get moving – When the body is not active, the circulatory system does not work as well as it should. The blood circulation heavily relies on the movement of the body. If you are not able to stay active during the day, making exercise a part of a routine is an effective way to improve blood circulation. A 30 min run or walk every day will help.
Reduce alcohol consumption – Excess alcohol consumption can harden the arteries, this leads to a hindrance in healthy blood circulation. It can cause dehydration and a spike in blood pressure levels. Thus, if you are wondering how to improve blood circulation, drinking alcohol in moderation is the key.
Get a massage – Getting a massage is not only perfect for relieving stress but also stimulate the flow of blood. A massage can be done using soothing oils such as almond or coconut oil. Using this therapy at least once a week is a good way to improve blood circulation.
The above activities are natural and come with no harsh-effects on the body. Thus, they should be practiced regularly and made a part of life.
How to choose the best board gamesRead More
Board games can add an amazing amount of entertainment to your family nights and house parties. They are a classic strategy to bring together your loved ones and friends. Now many may think that board games are something very 90s, but the truth is that they are still quite popular. And to make the most of this fun-filled experience you just have to ditch your smartphone for a while.
Although there are many wonderful options that you can explore, choosing the best board game can prove to be a time-consuming task due to the availability of several alternatives. The key is to narrow them down smartly by keeping certain important points in mind. Here are a few factors that can help you select the best board games, which can make your family nights or house parties more exciting.
Age of the players
The first thing you should focus on is the age of the participants. If you are having a party at your place, you should incline towards buying adult board games. On the other hand, if it is a family night you should check for games that complement the age of your kids. For instance, a game stating ages three and above may not necessarily interest teenagers. So thoroughly research about your options.
Number of players
If you are having a house party choose a game that can comfortably accommodate a large number of people. On the other hand, for a family any kind of board game can be ideal as long as everyone gets a chance to play.
Figure out how long do your guests or family wants to play. This is because you will have other activities to do as well. In a party people might need some time to dance, talk, eat and they may even want to watch a movie. With family nights, your kids can get easily tired especially if they are extremely young. So, try and keep it brief and straightforward. Ultimately it all depends on how much fun the participants are having.
Make sure that you are fairly aware of everyone’s preferences, especially for a house party. Try to incorporate a game that everyone knows, instead of something complicated that may require some getting used to. If you want to pick a new board game make sure that it is easy to understand and engaging as well. For a family night, you can use an old game or a new game. A new game might be a good choice as everyone will get a chance to experiment with something innovative.