With the start of a new year, there are many things you should take stock of to ensure your business is where you want it to be. Whether you are a seasoned employer or running your first payroll, there are always things to learn and do. Payroll can be especially tricky, but you want to make sure first and foremost you get your employees paid and paid correctly the first time.
Ensure you Have a Basic Payroll Process in Place
The way you ran payroll last year may not be the best option for the new year. You might have added some employees, or you may have less time to manage payroll. The beginning of the year is a great time to change how you run your business’s basic payroll. Access what the process was, how it worked and if you should be making a change.
Also, if you are not currently using online payroll software, you should consider it. Online payroll software is often low cost, securely stored in the cloud, and accessible anywhere with an internet connection. It can help you simplify your process and manage things better for your business situation.
Know the Tax Deadlines
The beginning of the year is a great time to figure out which forms apply to your business and employees. Some common payroll forms include:
- Form W-2 (Wage and Tax Statement)
- Form 1095-B (Health Coverage)
- Form 940 (Employer’s Annual Federal Unemployment Tax Return)
Make sure that once you know which payroll forms you need to fill out, you also find out their deadlines for filing and updating them. Most forms are either due annually or quarterly, and missing a deadline can lead to penalties that you can avoid if you just stay up to date on the deadlines.
Keep your Files Organized
The IRS requires you to keep payroll records for a specific amount of time depending on the type of record. Having an organized filing system will help ensure you have what you need, where you need it, when you need it.
If you need help figuring out payroll, give us a call! We would be happy to organize your business payroll and get you ready for tax season.