The key to having the right people in the right places doing the right things is supervision, entrepreneur Ned Stagg advises. Setting up a proficient team to run an organization can give the business owner more flexibility to focus on future growth.
Q&A: Setting Up Payroll
Your growing business may need to bring on a dedicated support system of staff. Before you start writing job descriptions and coordinating interviews, make sure you’ve planned how you’re going to pay new employees and ensure their rights in accordance with federal and state labor laws.
1. Do you have an Employer Identification Number (EIN)?
2. Do you need state or local tax IDs?
3. Do you want to hire independent contractors* or employees?
*Functioning under a separate business from your own, an independent contractor is self-employed and provides their goods or services to your business.
4. Have your employees submitted their W-4 forms?
5. Are pay periods scheduled in line with IRS tax withholding?
6. How do you plan to compensate for holiday, vacation, and leave?
7. Which payroll service will you use (in-house or external)?
8. Who will manage your payroll system?
9. Which records should stay on file, and for how long?
10. How will you report payroll taxes quarterly and annually?
For a detailed summary on tax information, check out the Employer’s Tax Guide that’s published by the IRS. The document covers your responsibilities as an employer for withholding, depositing, reporting, paying, and correcting taxes for your staff members.
Offering Employee Benefits
Don’t underestimate the power of employee loyalty. You want to hire great people and give them an incentive to stay and contribute to your bottom line. Providing an attractive benefits package shows your employees that you’re invested in their futures.