Are you with in the process of getting your business up and running? Although you are wearing many hats at this time, it is vital to pay the most attention to the details that can “make or break” your company during the start up phase.
If you don’t know the first thing about setting up payroll for your company, there is no better time than now to learn. After all, this is something you need to figure out sooner rather than later.
Steps for Getting Started
Before we go any further, it is important to note that the steps you take to get started may not be the same as the next company. For example, the state in which your company is located could impact how you move forward.
Here are few general steps for getting started:–
1. Obtain An Employer Identification Number (EIN):–
EIN is necessary for many procedures addressing revenue such as filing returns, reporting taxes and other documents to IRS (Indian Revenue Services) and reporting information about your employees to state agencies. Therefore, once you have registered your business name with Companies Registration Office, you have to get EIN from revenue commissioner before hiring employees.
2. Ensure Whether Your Company Has Employees or Independent Contractors:–
Know the difference between an independent contractor and an employee. The legal terms create a small and unclear line between the two, but it may affect how you withhold income taxes, pay unemployment taxes and withhold and pay social security and Medicare taxes.
3.Take Care of Employer/Employee Paperwork:–
Establishing your policies and procedures are a significant step in all HR payroll systems. Draw up a payroll policy and procedure document to cover all your legal obligations. It usually includes several things such as
• Contracts of employment: starting working hours, holiday entitlements, overtime, additional benefits like pension, car parking etc.
• Style of payment: weekly, monthly or bi-monthly
• The rules of payment during work absences such as holidays, sick days, maternity/paternity leave
• The rule of overtime for hourly employees
4. Selecting A Payroll Management System:–
HR payroll system needs accuracy and an acute attention to detail. Therefore, the employers are advised to do some research to understand their options. They can inquire to fellow business owners which method they use and seek any tips from them for setting up a payroll system. Usually small business payroll solutions include in-house or outsourced options. Several basic desktop software applications and online services are available that can be used by small organizations to manage payment processing, revenue payments etc.
5. Run The Payroll:–
If you have collected all the forms and information, you can start running payroll. You can either enter it yourself or submit the information to your accountant depending on which payroll system you choose.
6. Review Your Payroll System:–
It is the duty of the employer to review the payroll system regularly to ensure it is fit for purpose and meets the needs of the organizations.
7. Select a payroll provider:–
Although you may be tempted to handle everything on your own, you are better off choosing a payroll company that can provide you with the assistance you need regardless of your location or requirements. Click here for easy payroll services.
With these steps guiding you, setting up payroll for a new company does not have to be a challenge.
About US:– YOMA Business Solutions Pvt. Ltd. along with its partner companies provides end-to-end HR solutions to match your business needs.
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