As a business owner, it's very important that you understand your payroll responsibilities.
(article continues below)
When you engage employees or independent contractors, you become responsible for various payroll requirements mandated by federal, state and local government agencies.
Failure to comply with payroll regulations is a serious matter. Late or inaccurate deposits may result in penalties and interest charges.
In fact, an Internal Revenue Service (IRS) study determined that 40% of small businesses receive penalties for payroll errors. Penalties are not just a "slap on the wrist". Small businesses that are subject to penalties pay annual fines averaging $845.
Our goal is to help you to make smart decisions concerning your payroll and help you avoid those nasty payroll penalties.
Of course, the best decisions for your business will depend upon your personal circumstances and your own preferences.
Payroll requirements are very complex and may seem intimidating at first, but by learning a few simple concepts, you will be able to understand your payroll responsibilities and choose the best method for meeting them.
The main decision you will face is how to process payroll.
You have four distinct options to choose from. You can "do it yourself", hire an accountant, purchase payroll software, or outsource your payroll processing to a payroll provider.
There are advantages and disadvantages to each of these methods, which we cover in many of our articles on payroll and payroll services.
We will familiarize you with the basic concepts of payroll management and introduce you to options to help make the process easier.
Our articles only provide very general information about the employer-employee relationship and how to process payroll. It is important that you fully understand your responsibilities and deadlines involved. For more information, you can go to the IRS Web site, call the IRS at 1-800-829-1040, or contact your tax preparer.
You can also use a full-service payroll provider such as SurePayroll, ADP or PayChex for comprehensive help fulfilling your payroll responsibilities.
With the information available to you on this site, making payroll should be a little easier!