By Craig Gocken
Processing payroll is a necessary component of the administration of nearly every small business. So if everyone is doing it, it must be “no big deal,” right? Well, yes and no. It is commonplace, and many businesses figure it out and have no real problems. On the other hand, it is not something to be taken lightly. There are real and potentially serious consequences of failure to execute your payroll correctly. Not only do employees take it very seriously when errors occur in their paychecks and withholdings, but the IRS also finds this unacceptable and will fine violators accordingly. So how can you make sure that your small business is doing payroll right? Here are a few general questions that you need to know the answers to.
What Needs to be Done? First of all you need to have a working knowledge of the tasks that are required in a functioning payroll operation. Just some of the tasks required, in addition to simply paying your employees, are filling out necessary forms, making payments of withheld taxes to the government, and keeping accurate records.
When Does It Need to be Done? With an adequate understanding of what needs to be done, you can look at the timing of each task. Other than how often your employees will be paid, most issues of timing will be decided by the IRS. There are certain dates that are set for filing of documents and payments, and failure to meet those deadlines will result in fines. For that reason, you will want to be sure that you know what is due when.
Who Will Be Doing It? Once you have familiarized yourself with what needs to be done and when, you will want to make sure that you have just the right person to do the job. This operation requires someone who is dependable, trustworthy, and detail-oriented. You want to make sure that whoever is in charge of your payroll understands the job and the necessity of doing it accurately and in a timely fashion. Sometimes small businesses will hire an external payroll administration service to take this over. Outsourcing this activity can be a real benefit for a small business. Federated Bank also offers this service to our customers.
This blog only deals with the most basic of payroll considerations. You can visit the business page of the IRS’s website (www.irs.gov/Business) for answers to questions you may have. If you would like more detailed information about payroll administration and the tools that Federated Bank offers to make yours run more smoothly, stop by and talk with one of our branch managers. We’re always here to help!
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