Three of the Most Important Small Business Payroll Tips

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There are a lot of challenging things about running a small business, and processing payroll can sometimes be one of them. It’s time-consuming and confusing for many small businesses, which is why some of them have decided to outsource payroll. But whether you’re doing payroll in house or leaving it to someone else, we think we can help you out.

Three of the Most Important Small Business Payroll Tips

Here are three of the most important small business payroll tips:

  1. Get an Employer Identification Number- An Employer Identification Number (EIN) identifies your business for taxes, and you may need to register for one before you can put your employees on payroll. If you don’t already have an EIN, you should apply for one through the IRS.
  2. Classify Your Workers- This small business payroll tip goes beyond stating a classification in a contract and having your worker sign it. They might agree to be an independent contractor, but the facts of the worker-company relationship could indicate that they must be classified as an employee. Make sure you assess the classifications carefully, since they have different tax implications.
  3. Stay on a Consistent Pay Schedule- When it comes to small business payroll, one of the most essential tips we can offer you is to pay your employees on time. You’ll keep your employees happy and ensure they are taken care of. A payroll calendar can be a helpful tool to keep you on track.

If you need small business payroll services in the Wilmington, North Carolina area, contact us at Goodson & Taylor CPAs.