You might be doing everything right on your payroll, but you could be leaving some money on the table through mistakes that you didn’t even know you were making. It’s hard to know if you are doing payroll right, though, if you don’t have any benchmarks to compare yourself against. But fear not – here are some ways to make sure you’re doing your payroll right so that you can get back what’s rightfully yours!
Don’t Overlook Tax Deductions
It’s an entrepreneur’s job to make money, but it’s also his or her responsibility to protect that money. Part of protecting your revenue means taking advantage of tax deductions. But while personal deductions like mortgage interest and charitable contributions are clear, other write-offs for business owners can be surprisingly complex. If you haven’t had time to consult with a financial adviser yet, there are several strategies for deducting common expenses that can help lower your tax burden while helping your company grow.
It’s Important to Stay Organized
You’ve got a lot of things to do and remember as an employer: who you need to pay, how much to pay them, and when. The last thing you want is to find yourself in a situation where an employee isn’t getting paid or that he or she is owed too much. You also don’t want your employees having any issues with their paycheck. Keeping track of your employees and wages will help make sure all payroll-related problems are solved before they happen. The best way to stay organized with your employees and paychecks is by using online software like Payroll UZIO.
Think About using a payroll software
Hiring employees and paying them is a lot of work. It requires tax reporting, record keeping, insurance forms and more. You can do all that paperwork yourself (and save on it by taking advantage of free online resources like IRS Tax Transcripts and Free Agent Central), but it will be simpler if you use a payroll software. If you don’t use one, an accountant or bookkeeper will cost several hundred dollars per month to manage those details for your business. But with good payroll software costing as little as $20 per month, there’s really no reason not to take care of your own payroll yourself.
Know what features you want
Understanding your business’s short- and long-term goals is critical to choosing a payroll software provider. Even if you just started your company, it’s important to know what kind of payroll service you want: Do you need features like direct deposit and direct debit capabilities, multiple tax filings and reports? Do need more advanced features such as employee leave tracking or tax deductions for health care premiums? One size doesn’t fit all, so make sure to do your research and understand what level of service you’ll need before signing on with a new vendor.
Check reviews online
It is very important to check online reviews of other people’s payroll services that can help you find a company that meets your needs. Of course, there are a few things to keep in mind. First, it’s vital to check multiple sources—word-of-mouth from family and friends might have swayed others to certain companies, but those who have had bad experiences with a business may not be as likely to post negative comments online. Second, it’s always best to research several similar options before deciding on which one is right for your company. Finally, do some digging into the company itself.
Payroll errors cost businesses more than $350 billion a year. Fortunately, there are ways to mitigate those costs and protect your company from paying too much or too little in taxes and unemployment insurance, along with worker’s compensation and other expenses. Auditing your payroll is an important part of running a business — but it doesn’t have to be difficult or costly. payroll software can help ensure that you’re taking advantage of all available tax deductions and saving money on every check.