If you’re a new business owner, it can be difficult to decide exactly where to place dollars for the biggest impact on your business. Whether you’ve been hiring employees for years, or you’re finally getting ready to take the plunge and bring on your first help, taking the initiative to outsource your labor is a big step for any business owner. There are many payroll dos and donts out there that you need to be aware of!
When your business relies on more than just you, outsourcing your payroll may be one of the best decisions you make. However, did you know that a third of all small businesses get penalized for payroll mismanagement? Payroll is a complicated, expensive, and necessary part of the process as you make the transition from solopreneur to employer. Read on for these tips to make sure you don’t make costly mistakes!
Be a good boss
Let’s face it – we’ve all had those employee experiences we discuss with our friends over drinks. Don’t be a bad boss! Most workers choose an organization for employment for more than just a paycheck – they want to feel appreciated, valued, and excited about what they do!
With that said, you need to do the basics right. Employees expect to be paid on time, correctly, without exception, every time. They’ll want to have a way for their money to be deposited directly into their bank account so they don’t have to go to the bank to deposit cash or a check. They’ll need records of how much they paid in taxes. They’ll want easy accessibility to their payment history. Not doing any one of these things can have a huge impact on your staff’s trust in you!
Perhaps your payroll is a straightforward, every-two-weeks process, where each employee is paid the same amount. More than likely, however, your payroll is more varied and complicated, with different levels for certain skill sets, time worked, or compensation structure. Make sure you have the skills in place to handle your business’ unique situations, whether that’s through you, an employee, or a vendor.
How to avoid miscalculations
First, make sure you are classifying your employees correctly. Full-time, part-time, gig and contract workers all have different requirements. For example, not classifying for the proper minimum wage requirements could result in legal ramifications for your business.
Secondly, it’s important to understand that employment and tax laws change constantly. Outsourcing your payroll to an expert who is knowledgeable about the latest updates means you don’t need to spend your business hours researching and properly applying tax codes.
Finally – we hate to say it, but don’t think hiring an expert means you’ll never have to think about payroll again. For example, outsourcing your payroll doesn’t mean your vendor will know when an employee messes up on a timecard. They may know more about payroll, but you will always know more about your business and its intricacies. Likewise, your service provider has likely seen all sorts of employment situations that you haven’t even considered. It’s best to think of outsourcing your payroll as a partnership between you and your expert, where each of you is balancing the other’s strengths and weaknesses.
Celebrate your success
Scaling your business to the point where you require others to help you is a milestone worth feeling proud of. We know that life as a business owner can be overwhelming, especially when your employees are relying on you for their livelihood. Let the Symmetrical Solutions team handle your financial logistics so that you can spend more time working and celebrating the business that you love! Contact us today to learn more about our services.