Tips & Tricks
# 1. Consider outsourcing your payroll.
Shy away from doing your own payroll. First and foremost, unless you have an accounting background, you probably don’t know all the rules involved. So let an expert take these payroll requirements off your plate and ensure you are playing by all federal, state, and local rules. There are hefty penalties for filing your payroll tax returns late or not providing adequate withholding deposits when they are due. Avoid these traps and stay current by letting an expert handle it on your behalf
# 2. Consider offering fringe benefits or lawful allowances to reduce your taxes.
Giving a raise to a deserving employee is nice. However, it automatically increases your payroll and payroll tax bill. So why not offer fringe benefits instead? The good thing about fringe benefits is that they help attract and retain better qualified employees. They include company housing, company vehicles, company cell phone and a petrol card. Lawful allowances such as Housing Allowances are 1/3 tax-free. Allowances improves efficiency and productivity as employees are assured of security for themselves and their families.
# 3. Consider maintaining a second business bank account for payroll.
In order to set aside money to cover your payroll and payroll taxes, it’s a wise idea to have a second business bank account specifically for this purpose. This will guarantee that you have enough funds on hand separate from your regular business funds to cover these required payments. It would also save you money if you change your payroll structure to Cost to Company.
# 4. Ways to help save the enviroment while lightening your workload!
Opt for Electronic Time and Attendance with BioMetric readers or electronic payslips. You won't just save paper, but your time as well. Install ESS (Employee Self Service). Employees will be able to apply for leave online.
# 5. Record keeping and data gathering.
Record keeping and data gathering are critical areas of business. Data gathering is especially important for the employees of a small business. There are local, states, and federal record keeping requirements for each new employee and for each employee that remains employed. Making sure that the correct information is gathered is vital to the longevity of any small business.
