Adding staff to your small business can
seem like a great way to get more done and increase your revenue.
However, it’s important to understand payroll rules and regulations to
be compliant with the government and take advantage of tax incentives.
The tax professionals at Whyte and Associates in Rancho
Cucamonga are certified financial consultants who have helped countless
clients establish and run their payroll and other financial systems.
They offer tips to help clients maintain their compliance:
- Make sure your employees are properly classified.
While an individual may agree to be paid as a contractor, the government
may not allow it depending on the type of work provided.
- Get an employer identification number (EIN). If your
company is a partnership or corporation, you already have an EIN. If
not, you will need to apply for one with the IRS.
- Be sure your payroll budget includes the federal and state taxes that must be paid by the employer.
- Research payroll companies. While some companies
manage payroll services in house, others find value in outsourcing to
experts. This can free up time and minimize some of the risk, as payroll
experts have a better understanding of rules and regulations.
- Understand the schedule of your federal and state
payroll tax deposits. The penalties on missing these deadlines can be
very steep, so it’s critical that you, or your payroll processing
company, make the deposits on time.
- Understand the compensation package that you offer
employees. There are many benefits that employees appreciate and are
tax-free such as health, dental, and vision insurance, child care
subsidy, retirement plans, and cell phone. Be sure to check the right
IRS publications to make sure you understand which benefits are subject
to taxation.
For more information on payroll services, call Whyte & Associates today.
The payroll consultants at Whyte & Associates in
Rancho Cucamonga are certified, educated and experienced in tax rules
and regulation and skilled at helping clients.
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