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6 Payroll Tips for First-Time Employers

Payroll is a complex and costly endeavor; if you don’t know what you are doing, it can significantly drain your bottom line. Payroll can be an easy task that can save thousands of dollars annually and keep your employees happy. So, you’ll need to do some homework and choose carefully among the many options available to employers.

1. Know Your Payroll Options

  • do it yourself.
  • outsource to a payroll service provider.
  • outsource to an HR/payroll service provider.
  • use an online payroll system.

 

Employers with fewer than ten employees can choose between the first two options. In contrast, employers with more than 50 workers should consider using an online payroll system or outsourcing their payroll processing needs entirely via one of these providers.

2. Set up a Payroll System and Stick to it

When setting up a payroll system, you must first decide on the pay period type. There are three options: weekly, biweekly and semi-monthly. It is best to choose one that works for your business and then stick with it.

For example, if your business has 30 employees who each have a contract with you, you might find that it makes sense for them to be paid weekly instead of biweekly (which would mean they only get paid once every two weeks). 

However, if only five employees are working under an annual contract with your company, then perhaps paying them semi-monthly makes more sense since this will allow them to receive their wages twice a month rather than once every two weeks or once a week.

3. Be Sure to Withhold Taxes from Employee Paychecks

Payroll taxes are a crucial part of the employee-employer relationship. They ensure that employees pay their fair share and help support the government, so you need to withhold them from your employee’s paychecks.

4. Pay Your Employees Regularly and On Time

  • pay employees as soon as possible after they work.
  • pay them on payday, and ensure you have a payroll system to get paid on time and in full.
  • do not allow lapses in pay for employees. 

5. Consider an Online Payroll System

Online payroll software is an excellent option for first-time employers. It can be used by any size business and offers a variety of features that will help you manage your employees.

  • payroll: You can use online payroll software to pay your employees and ensure they’re paid on time (and without mistakes). This software also helps you manage their tax withholdings, so you don’t have to worry about getting in trouble with the IRS or state authorities.
  • time off: Online payroll systems allow employees to take time off using their mobile devices—even when they’re not at work! You can schedule vacation hours or sick days with just a few clicks, making it much easier than having an employee fill out paperwork or call the office.
  • benefits: Online payroll systems come with many different benefits packages available—including health insurance, life insurance, and disability coverage—which means less work for you as an employer.

6. Look Into an HR/Payroll Service Provider

You should look into using an HR/payroll service provider. These companies handle the administrative tasks of setting up payroll and providing employee benefits, so you don’t have to worry about anything other than running your business. Why use an HR/payroll service provider?

  • save money on labor costs: Hiring a full-time employee is expensive, especially for small businesses that don’t have enough employees to justify hiring someone solely for payroll purposes.
  • avoid legal hassles: With specific laws changing yearly (e.g., minimum wage), it’s difficult for new employers to keep track of everything that might affect their business’ payrolls in any given month or quarter. An HR/payroll service provider can help with this by offering advice and assistance when needed—and they’ll also keep themselves up-to-date on all relevant regulations so that they’re not scrambling at the last minute trying to comply with them without having all of the correct information handy!

Contact Vision HR for All Your Payroll Needs 

Having a payroll system in place as soon as possible helps you manage your finances and grow your business.

It’s not uncommon for businesses to wait until they are large enough to hire a full-time HR person before creating a payroll system. This can be problematic because creating one can be complex and time-consuming. As such, getting started early in the process is wise by finding an expert who can create an efficient and effective payroll solution for you.

We hope these tips will help you to avoid some of the common mistakes made by first-time employers. Remember that it’s a learning process; as long as you ensure your employees are paid timely and correctly, things should go smoothly. At Vision HR, our team of payroll experts is here to help all Sanford businesses with payroll services to help you get back to growing your business! Contact us today to learn more.