Do you run a business? If you do then you’ll know that there is a lot of bureaucracy involved: it’s not as simple as setting up and watching the dollars fly in. No matter how successful you are you need to ensure that your employees are properly registered and are on the payroll.
It can seem like the obvious solution to employ someone to do your payroll for you, one of the best payroll tips, but it is worth considering whether you can do your own payroll.
Here’s the best way to do your own payroll compared to employing someone to do it for you.
What Is Payroll? What is The Law on PayRoll?
Payroll is the term used for employees who are employed part of full time by a company and are registered to that company rather than being a self-employed or freelance contractor.
Someone who is self-employed or contracted through a third party is responsible for filing their own tax returns and managing themselves or the third party is. An employer on the payroll is your responsibility.
Every employer must complete a W-4 form which is then sent to the IRS. This is a declaration of how much they earn at your business compared to their other earnings.
Every employer should also have an Employer Identification Number (EIN) that is unique to them.
Time Vs Money
The first thing you need to establish is whether it’s worth your time or your money to take control of your companies payroll. A PayStubCreator can make your life easier and reduce some of the time. It can also reduce paper, part of the business case for going green. Your employees will have an accurate account of their wages and salary produced automatically.
But managing your own payroll can still take time.
However, if you have just started your business and you are not making a huge profit then it might be quite a saving for the few hours you have to spend on payroll every week.
Consequences of Filing Inaccurate Payroll Records
If you do decide to file your own payroll remember there are consequences for getting it wrong. Your company could be fined if you make the wrong declarations as to the number of employees and how much money they earn. You have to keep up with new rules that change every year.
In 2020, for example, overtime rules are changing and need to be inputted on the payroll.
If you make serious errors you and your employees could even be sent to prosecuted and sent to prison. It is clear that if you are worried about this risk that you should employ an accountant or experienced HR staff to do your payroll for you.
Do Your Own Payroll? It Depends on You and Your Business
Whether you decide to do your own payroll depends on you and your business. Payroll software makes filing your paystubs easier and means employees have easier access to their payroll records.
But there is a risk with doing the payroll yourself that might outweigh any monetary saving. Filing inaccurate records could see you fined or worse and could end up costing you more money than you have saved.
If you are interested in reading more about whether you should do your own payroll or tips for doing your own payroll then be sure to check out the rest of our site.
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