5 Benefits of Hiring a Payroll Provider

Payroll is both a time-consuming and costly obligation for any company, no matter its size. Often these tasks can make any business owner dread doing their payroll, which can have serious consequences. Although this task is an essential part of every business owner’s routine, it doesn’t have to be any longer. 

Outsourcing payroll might seem expensive and more of an added stress than doing it in-house. However, this can be a guiding light for most business owners at the end of the never-ending payroll tunnel. Join us as we discuss 5 benefits that hiring a payroll provider can have for you as a Jacksonville business owner. 

1. Security 

In today’s world, security is critical. Hackers are everywhere, primarily online. For new business owners who might not be able to secure their private information correctly, this could lead to disaster. By not securing your information the correct way, you leave room for hackers to get information from you and your employees, such as names, social security numbers, bank information, and much more! When you outsource payroll tasks, you can get more security in knowing that all the information will be safer and more secure. 

2. Save Money 

Payroll not only takes valuable time away from your business but getting the wrong information can be a costly expense for your business. For example, sending inaccurate information to the IRS can potentially put you at risk for fines and other penalties.

3. Save Time  

Outsourcing payroll tasks can free up your time and your employee’s time to focus on running the business. This can help increase revenue and focus attention on what matters the most: growing and expanding your business—not sitting behind your desks doing payroll for hours on end. 

4. Professional Advice and Help 

Payroll can be tricky. With so many rules and regulations you need to abide by, sometimes things can easily be forgotten or misunderstood. Luckily for those who outsource their payroll have experts there to guide you through the process makes things much more manageable. You can also be more confident in knowing you are getting the correct answers to your questions and don’t have to turn to Google for your information. 

5. Added Services or Benefits 

When you work with a payroll company, they may also offer many other added services that you can benefit from. These can be anything such as:

• HR
• business insurance 
• 401K
• recruiting and staffing 

 

There are tons of added benefits to additional services; it would be a no-brainer to seek professional help from people you already trust. With so many payroll service providers out there, you need a company that will work with your needs and you as an individual. Here at Vision HR, we do just that; our experts are here to help in all of your business needs to help you focus on what matters most, growing and expanding your business. Give us a call today!

Direct Deposit vs. a Payroll Card

When you’re a small business owner, there are many payroll decisions to consider. One of the most important decisions you’ll need to make is whether you should pay your employees by direct deposit or by a payroll card. By learning the benefits and drawbacks of both options, you can make an informed choice that will benefit both you and your employees in the long run.

Some companies believe that the payroll card offers significant advantages, while others argue that direct deposit is better. In this article, we’ll explore the benefits and downsides of each option to help you make a better-informed decision on which choice is right for your companies’ payroll. 

Direct Deposit 

What is direct deposit? Direct deposit, also known as DD for short, is the electronic transfer of funds which can include social security and retirement benefits, salaries, and tax refunds from your employer, a government agency, or another institution, such as a bank, to your personal or business account. Direct deposit is often the preferred method for employees to receive their pay because of the many benefits such as:

• secure 
• easy
• always on time 
• reduce the risk for stolen or lost checks 

 

Although this option is the most sought after for employees and employers, it can have a few potential drawbacks such as: 

• added cost for the business owner 
• need to fill out new forms when changes occur 
• potential for stolen identity and bank information  

 

Payroll Card 

There are situations where direct deposit might not be the best form of receiving payment. Payroll cards make it possible for those who do not have a bank account or local banks near them to receive a paycheck. Printing out checks can be expensive, and some banks even charge extra for direct deposits. On the other hand, payroll cards come with little to no cost to the employer, depending on the service they sign up for. Although these pre-loaded cards come with many benefits, there are also a few drawbacks such as: 

• additional fees for using the card 
• general fees for the employee 
• the card can easily be lost or stolen 

 

Direct Deposit vs. Payroll Card: Conclusion 

As a business owner, it’s essential to understand the ins and outs of your business’s payroll. This often means learning more about ways you can help your business and employees thrive. Not all companies might see the benefits of using one form of payment over the other. However, there is always a better option for your business. If you are an Ormond By The Sea business owner struggling with payroll, Vision HR is here to help. With a skilled team of experts, we are ready to help you make payroll an easier task. Contact us today to learn more about our services and speak with a payroll expert.

What is Payroll Retention?

As a St. Augustine business owner, it can feel overwhelming to keep track of all of your paperwork and records. However, this is a critical task that many owners might seem to overlook. Unfortunately, misplacing necessary documentation can create an even bigger headache than filing it in the correct place, to begin with. When it comes to payroll, there are no exceptions. By having all of your employee documentation in one spot, you’ll make the task of payroll more accessible and more efficient. Do not fear the dreaded words of payroll retention; instead, join us as we discuss how easy and essential this task is. 

Payroll Records 

Every business owner will have to keep records of different types of documentation for their business and even personal matters. Misplacing paperwork can be infuriating and make the process of payroll even harder. Here is a shortlist of a few types of payroll documentation you should have within your files, such as:

• employee personal information 
• employee hourly pay 
• overtime pay
• wages per period 
• payment dates or periods 
• workweek information 
• forms (W-2, W-3, W-4, W-5)
• benefit records 

 

If your business requires other types of documentation or forms for payroll, make sure to keep them with these general documents as well. 

Payroll Retention 

There are many benefits that you will reap by keeping payroll records. The first is that you’ll be following the laws of a few different agencies, which require a business to retain their payroll for a certain number of years. You’ll also be able to access information faster and easier than before, making payroll less time-consuming since all your documentation is organized. Finally, it can also benefit you if you get audited by the IRS or accused of a crime by a current or former employee. 

Storing Payroll Records 

The best way to store payroll records is whichever way works best for you and your business. Some business owners prefer the traditional way of record-keeping involving paper documentation. However, new technology makes it easier than ever to place these records in online files. If you are going with paper records, make sure to always label and store documents in a locked, water, and fireproof box or cabinet. With the online filing, you don’t have to worry about the records becoming damaged. However, it’s important to note that you need to be uploading your files in a safe and secure place on your computer or payroll system. This will prevent hackers from stealing personal information from you and your employees.

Retention Requirements

Did you know that there are laws in place to inform business owners such as yourself just how long you should keep your payroll records for? According to the Fair Labor Standards Act, also known as FLSA, you must retain all your payroll records for at least three years. Records of employment must be kept for four years, and records for determining wages must be kept for two years. The following agencies require that you keep records on file, such as:

• IRS
• Fair Labor Standards Act 
• Equal Employment Opportunity Commission 

 

Payroll retention is not as complicated as it may seem, and, in the end, it can save you time, money, and added stress. If you are looking for a reputable payroll service company, our team at Vision HR is here to help. We make payroll easy for business owners so you can get back to what matters most. Contact us today to learn more about our services. 

Why is a W-4 Form Needed for Payroll?

Payroll is a necessity for all companies. Whether it is a small business or a large corporation, an employer needs to pay their employees on time. This is done through running payroll, which in turn requires your business’s employees to fill out a W-4 form. But what is the W-4, and why do you need it? Have you ever wondered this but didn’t know who or where to ask? There are many sources on the web that claim that there is no need for it and that just because you get into the payroll business doesn’t mean that you should use them. However, today we will be taking a closer look into why you need these forms to complete your business’s payroll and the importance behind them. 

What is a W-4 Form? 

Let’s break down what a W-4 form is. Firstly, it’s essential to understand that we are all subject to federal and state taxes on our earnings, and the process begins with filing a W-4 form. In short, this form is the employer’s declaration of the allowances they will withhold from their employees’ paychecks for tax purposes. Thus, the IRS describes it as an Employee’s Withholding Certificate. All new employees are required to complete a W-4 form and provide it to their employer. Then, when it comes time for your employees to file their taxes in April, their withholdings count towards their annual income tax bill, which is calculated at this time. This will determine the amount of money they are refunded or owe to the IRS. 

How to Fill it Out 

There are a few different ways in which a new employee can fill their W-4 form. This means that you must understand these differences to withhold the proper amount of taxes. In 2020 the IRS redesigned the W-4 form, which removed the ability to claim personal allowances. This makes it easier for business owners to determine the withholding amounts. All that employers have to do now is provide information such as:

 

• address
• social security number
• filling status 

 

An important detail to note is that employees only have to fill out a new W-4 form if they are beginning a new job at a new company or if they wish to change the current amount of taxes being withheld. 

Filling Status 

When filling out the W-4 form, your employee will choose to claim 0 or 1 on their form. By claiming 1, the employee will most likely receive a refund check from the IRS after filing their taxes in April. This is because fewer taxes are taken out of their paychecks that they receive weekly, monthly, or bi-monthly. On the other hand, if they were to claim 0, this means that your employee likely will receive a little to no refund check from the IRS. Again, this is because they have received more money from their paychecks at the end of every week, month, or every other month.

As a business owner in Ormond Beach, it’s essential to understand the different types of documentation needed to complete your payroll correctly and efficiently. Always keep W-4 forms handy within your business because you never know when the right employee might walk through your door.

Although it is up to your employees to correctly fill out their forms, always make sure that you offer them the correct documentation and submit any additional paperwork to the IRS when completed. At Vision HR, we know that payroll can be time-consuming. Instead of worrying about this headache of a task, let our experts help out with all of your payroll needs. Contact us today to see how we can help you with our exceptional payroll services. 

Understanding Payroll Tax Penalties

We’ve all heard the phrase “payroll tax penalties,” but what does it mean? And more importantly, how can you avoid it? If you haven’t thought about payroll tax penalties before, then you’re not alone. Unfortunately, many business owners don’t understand what they are until they first experience them. Let’s look at what payroll tax penalties are and how you can better understand how to avoid them in your Deland business. 

What Are Payroll Taxes Penalties? 

Payroll taxes– are a set of taxes and contributions that employers or employees must pay out to the government regularly throughout a year; these include. 

• State Unemployment Tax
• Federal Unemployment Tax
• Temporary Disability Insurance Tax
• State Disability Insurance Tax
• Social Security

 

These taxes are distributed in such a way as to cover the cost of medical and pension benefits for retired workers. The IRS can impose severe penalties for payroll tax mistakes, including underreporting, overpayments, and failing to deposit taxes. At the same time, penalties can vary significantly by taxpayer and circumstance. As a business owner, understanding these payroll taxes is essential for avoiding penalties and fines from the IRS. 

Payroll Tax Requirements 

As a business owner, you are required by law to accurately report all forms of employee compensation to the IRS as well as withhold the correct deductions from those wages; these can include:

• tips 
• bonuses 
• overtime 
• regular compensation 

 

Although it may seem easier not to withhold taxes from payment such as tips or bonuses, failure to do so can end up costing you more in the long run. 

How Much Will You Owe? 

By the time you realize you have made a mistake on your payroll taxes, it may be too late. A bill from the IRS may already be waiting for you in your mailbox with the exact amount of penalties and fines you have to pay. Each business and situation are different; therefore, you will need to take these considerations into account to estimate any penalties and fines you may have accumulated. 

Suppose you want to understand more about how the IRS calculates penalties and fines. In that case, their website is filled with tons of valuable information in which you can understand how they calculate penalties for different situations and the criteria for charging specific penalties. 

Penalty Relief 

Running a business can be challenging for anyone, and as humans, we are prone to making mistakes. Luckily, some penalties that you may receive are eligible for relief. This is good news to any business owner who has accidentally missed a deadline or failed to deposit certain taxes. Although you not all penalties and situation can be relieved from your records the appeal process will allow you to state your case and, in the end, it might be worth the shot if the penalties get resolved. 

Don’t allow your business to fall victim to payroll tax penalties. At Vision HR, our team of dedicated professionals is here to help you with all your payroll needs and avoid costly situations such as these. Contact us today to learn more about our payroll services. 

What Should You Do It You Can’t Make Payroll?

Owning a business is not easy, and it’s not for the faint of heart. As a small business owner, you run the risk of facing cash flow problems at some point in your life. It might be because of an unexpected expense or inability to collect the money a client owes you. When that happens, you may find yourself asking a question most small business owners have asked themselves one time or the other: What should you do if you can’t make payroll? Let’s take a close look at some of the options you have as a small business owner to help you make payroll. 

Request Extensions 

When you are struggling to make payroll, you have many different options available to you. One option is to request an extension on upcoming bills and payments. If you have a good track record with your supplier, requesting an extension on your payment may be no big deal and allows you to use the cash to pay your employees instead of a hefty bill.  

Unfortunately, this option can only work for so long because the supplier will notice when payments are not being made or when you request an extension. It’s always best to be on good terms with your supplier and keep this option in your back pocket if necessary. 

Sell Extra Inventory 

If you can’t seem to make payroll, you might want to re-evaluate your inventory list. Extra inventory means that you can sell more products to your customers to increase cash flow. Although this is the best route to take, there is another option if you are having trouble selling inventory to customers. 

Instead of letting extra inventory sit in a back room collecting dust, now might be the best time to contact a liquidator. Liquidating excess inventory can increase cash flow and allow you to make up for payroll expenses. One thing to remember is that you may not receive the same amount of money you would if you were to sell the same inventory to your customer; therefore, you must consider the pros and cons before reaching out to a liquidator. 

Apply for a Business Loan

Small business loans are a great way to help increase cash flow and allow you to use the extra money to pay employees and much more. Before applying for a loan, it’s always best to ensure that you will receive the capital you need when you need it. Traditional loans can take weeks to months to hit your account. However, some companies get you the extra capital within 24-48 hours. 

Cash Advance 

Do you have a business credit card? If so, you might be able to take out a cash advance to make up for payroll expenses. Although a cash advance from your business credit card can be helpful, there may be hidden fees and extra costs such as high-interest rates that may not make it the best option for you. 

Another issue that can arise is that grace periods are not typically offered on cash advances. Therefore, you would be accumulating interest as soon as you take out the cash you need; if you don’t have a strategy to begin payment as quickly as possible, the interest and other fees can become overwhelming and not make this option worth the added stress. 

Ask Family and Friends 

Having a supportive network of family and friends can be extremely helpful during these times. If you find that the traditional options will take too long or not be the best fit for you and your business, then you might want to ask a trusted family member or friend for the extra capital you need. 

This type of loan should be treated like any other loan to avoid strain and stress on both parties involved and your relationship. To avoid these problems, it’s best to create a contract in which you outline when you will pay your friend or family member back and the amount of your payments. This will keep both parties responsible for holding up their end of the bargain without any added problems. 

Not all of these options will work in every situation; therefore, you must understand how each will benefit or hurt your business’s finances in the long run. Once you understand these concepts, you can better choose the right option for you and your business. 

The best way to avoid situations such as these is to plan. At Vision HR, we know that life can sometimes get the best of you, and all the preparation in the world can still leave you ill-prepared. Instead of getting by, contact us at Vision HR to help your Palm Coast business with all your payroll needs and avoid these situations from happening to you indefinitely. 

All About Wage Discrimination

When you start a small business, there is a lot of money to spend on items that are considered “frivolous.” But there is one expense that no company can ignore, and it is the issue of wage discrimination. You may be wondering what wage discrimination has to do with your current or future small business. The same thing that unpaid sales commissions have – the law. And if you think you can just stop paying some of your workers without consequence, think again.

As a business owner, it is your responsibility to understand the laws regarding employee pay and rights. Failure to do so could put your business at risk and is not worth the headache. Let’s take a closer look at wage discrimination and how you can avoid it in your business.   

What is Wage Discrimination? 

For those who do not know, wage discrimination occurs when an employee receives a lower wage than another worker for different reasons such as race, religion, or gender. An example of wage discrimination would be two employees who perform the same job and have the same experience background yet get paid different wages. Luckily for many workers, there are laws set in place that protect them against situations such as these from occurring; these include:

• Equal Pay Act
• Title VII
• ADEA
• ADA

 

Each of these laws deals with the topic of wage discrimination in a different light and aims to protect all workers with the rights that they deserve regardless of their sex, disability, age, or religious beliefs. Another essential factor to note is that all types of payment are protected under these laws, which include:

• vacation and holiday pay 
• overtime 
• salary 
• life insurance 
• bonus plans 
• benefits 

Prevention

Wage discrimination is a significant problem that businesses need to be aware of. As a business owner, you should understand the laws surrounding employee pay and ensure that your employees are being paid equally based on their performance, experience, and how they compare in roles to the rest of your workforce. Here are a few ways in which you can prevent these situations from occurring in your business, such as:

• proper hiring policies
• knowledge of state and local laws
• legal policies and manager training

 

No matter how big or small your business is, the way you treat your employees goes a long way. Creating a healthy and equal work environment gives each employee the chance to thrive within your business, benefiting you the most. Here at Vision HR, we make payroll management easier for your business. Contact us today to see how we can help your Jacksonville business manage all your payroll needs. 

Should Your St. Augustine Business Offer Paid Sick Leave?

When it comes to business benefits, paid sick leave may be something you haven’t thought much about, unlike other business benefits, such as healthcare plans and a 401k plan, employees and business owners alike desire.  

If you are a small business owner in St. Augustine, it’s good to know what other companies are up to and how they’re handling a common business issue. If you don’t offer paid sick leave, you may not be alone, but the small percentage of companies out there that don’t allow employees to take time off for illness aren’t necessarily serving the best interest of their workers. Here are some of the reasons why offering paid sick leave can benefit your business.

What is Paid Sick Leave?

Paid sick leave is time off that employees can receive to tend to an illness, disability, or injury. During this time, you must pay your employees their total wages and will not lose their position due to taking this designated time off. These benefits are beneficial considering the health of your employees should be your top priority, especially in today’s world.  

According to the Bureau of Labor Statistics, around 70 percent of private-sector workers don’t have access to paid sick leave, so this issue isn’t new. Paid Sick Leave has been around since the 1980s when Congress passed the Emergency Medical Treatment and Active Labor Act (EMTALA). This act mandated that “certain hospitals receiving Medicare funds must provide care to all patients needing treatment for an emergency medical condition regardless of their ability to pay.” Since then, states have started passing their laws regarding paid sick leave or providing provisions under their respective labor law. 

Benefits of Offering Paid Sick Leave 

There are numerous benefits to offering paid sick leave to your employees regardless of the size of your business. One of the most significant benefits is an increase in overall employee morale and productivity. As a business owner, there is nothing better than creating an environment where employees are more productive and happier to be working. For you, this can mean an increase in sales and customer satisfaction. 

Many if not all employees want to work for a business that understands their needs and takes care of them in times of need. When a severe illness or family issue arises, the added stress from being out of work can make the situation even worse. When you support your employees during times of need, they are more likely to stay loyal to your business, therefore, decreasing the turnover rate. 

The Bottom Line 

In the end, offering paid sick leave may not be the best option for every business; however, after discussing the many benefits, we hope that you give it a thought. Are you ready to change the way that you run your business’s payroll? Contact us today to find out how our payroll and HR services can help.  

How Seasonal Employees Affect Payroll

Hiring seasonal employees can be an excellent idea for any business. It can help fill in the gaps during a slower time of year and help business owners cut costly hours from their payroll while focusing on more profitable seasons. Seasonal employees can also be excellent additions to a business when trying to comply with labor laws and provide health benefits while minimizing costs. 

Hiring these short-term employees is not without its risks, though. Some employers may need to make changes to their payroll to accommodate the fluctuations in staff during certain times of the year. For example, if you employ seasonal workers during your slow seasons, this can inflate your employee count, which might mean you will have to start paying quarterly taxes instead of monthly. Let’ take a closer look at how seasonal employees can affect your Daytona Beach business’s payroll. 

Seasonal Employees and Federal Laws 

In short, seasonal employees are temporary workers that you bring in only during parts of the year. You may hire them to help with the holiday rush, such as online sales, or if you operate a seasonal business such as a summer camp or ski resort. The most significant benefit to hiring seasonal employees is that you no longer have to continue to pay extra employees once the rush or holiday season has ended. 

According to the Fair Labor Standards Act, seasonal employees have the same rights as full-time and part-time employees. This means that seasonal workers must receive hourly pay of at least minimum wage. You must also compensate them for their overtime work; even though seasonal workers may only be with your business for a short period, you still need to establish a regular pay period with them, whether that be weekly, bi-weekly or monthly. 

Withholdings such as taxes must also be made before paying your seasonal employees. Depending on how frequently your business is open throughout the year, this will determine when you will have to send in your tax forms. 

Effects on Payroll 

Since seasonal employees have the same rights as full and part-time employees, you must make sure that you include them in your payroll management. Failure to include these short-term hires on your payroll could get you into trouble with the IRS when tax season comes.

It makes sense that many business owners would rather pay their seasonal workers under the table, meaning paying them secretly. Even though this might seem like an easy solution to the added paperwork, it’s just another way that the IRS could fine you with potential penalties. In the end, it is not worth the headache and fines from the IRS.  

If you are looking to hire new short-term employees for the holidays or high-demand seasons, it may be best to look into seasonal employees. At Vision HR, we are here to help you with all of your payroll needs, especially when adding seasonal employees to your payroll management. Give us a call today and see how our exceptional services can help your business. 

Payroll: Contractors and Subcontractors

If you are a business owner, you probably have thought about hiring a contractor or a subcontractor to help you with your daily business operations. Both have vital roles, but they are not the same from a legal standpoint. Understanding the differences between contractors and subcontractors is very important for payroll management. 

Payroll can be tricky, especially if it’s your first-time handling employee payroll. The consequences of misclassifying an employee as a contractor or subcontractor can be enormous, including significant fines and lawsuits against you. Therefore, it is essential to understand which employees fall under which type of employment relationship. Join us today to discuss the differences between contractors and subcontractors and how they can affect your business’s payroll. 

Contractor

A contractor is either another company or a person who owns their own business. Typically, you would hire a contractor to complete a set of tasks that you or your current employees might not have the skill set to accomplish. In exchange for a completed job, you will then pay the contractor the agreed-upon amount, and each of you will go on your separate ways. Hiring a contractor might include a business that does:

• marketing
• website design 
• content creation 
• business branding 

 

Although the contractor is working on completing a set of tasks that need to be finished, they are not your employee. Once you have signed the contract to begin work, the contractor will allocate their time to complete the task on the agreed-upon time frame, and in the end, you will pay them for the amount stated within the contract. 

Subcontractor

Now, this is where things can get confusing. A subcontractor is also a business owner. Subcontractors have a set of skills to complete different tasks and projects to help the contractor complete the overall project that you have designated to them. The best way to think about this is that the contractor oversees the project’s completion and coordinates their skills and other tasks to subcontractors to complete the whole project. 

Let’s break this down even further. If your company requires content creation, you might reach out to a contractor specializing in different types of content creation. Once you have signed the contract and the project begins, the contractor might hire a few subcontractors with a specific set of skills to complete, social media captions, blogs, website copy, and much more. Hiring different subcontractors allows the contractor to oversee each job and effectively manage the project to complete it as a whole. It is also important to note that the subcontractor is not your employee.  

How Do They Affect Your Payroll?

The biggest question you may have when hiring either a contractor or subcontractor is how will this affect my payroll? In most cases, you will not be paying your new hire an hourly rate; instead, it will be one flat fee discussed within the contract. Because of this, your payroll will not be affected. 

Since they are not your employees, you will not be responsible for providing them with benefits, such as health insurance, sick time, or vacation. The contractors and subcontractors will be responsible for their benefits and will also have to pay their taxes at the end of each year. 

Contractor and Subcontractor Conclusion

As a business owner hiring a contractor or subcontractor can help alleviate some of the daily stress you may experience. If you need help to complete a specific task or project but don’t have the skillset, then these new and easy hires might be just the thing. Luckily for you, there is little to no effect on your payroll. However, if you are a business owner in the Ormond Beach area and are looking for a payroll service that can help you prevent potential confusion, look no further. Call us today at Vision HR to help you with all of your payroll needs.