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Handling payroll and taxes for a small businessHandling payroll and taxes for a small business. Taxes and payroll even in a small business is not something you should take lightly. The reason is that if you slack off in any area where these responsibilities are concerned, you can find yourself in both financial problems, along with possible legal problems. Where you are looking at payroll and taxes, you will find there are a couple different ways to handle them. You can either do them yourself, hire someone to do your payroll and taxes, or outsource to a company to handle these things for you.
Most of the time small business owners are happier to outsource these responsibilities to a company who specializes in taxes and payroll. This is for a couple different reasons. First, there are legal complications to improperly completing payroll and taxes. The second reason being that if you have not specialized in these areas, it is rather hard and tedious to complete. There are many laws and rules that come along with payroll and taxes. Here are a few of those rules to keep in mind. 1. Payroll taxes are due either semi-weekly or monthly. This greatly depends on the size of your payroll. Thus, if your total payroll for the quarter is less that $2500, then you can file quarterly. However, if it were more, then you would need to file semi-weekly. The IRS will help you to know what you will need to do. If there is a very large amount of payroll, say over $100,000 then it could be as soon as every three days. When you are doing your payroll. It will be important to figure out what is the best time frame for your company for when payroll will be completed. This can be worked around a couple different things. With a small business, making sure there is income to cover the cost of payroll is sometimes an issue in the beginning. Keep in mind that once the time frame is set, it will be very difficult to change it. So if you go with a weekly paycheck paid on Friday. Make sure that is going to be something that can be done. You will also need to find out what the delay will be on your checks. Will you have a one-week, two week etc with holding? It will be important to explain this information to your employees, in order to set proper expectations. With all of this in mind, you can see that there are certain responsibilities where the payroll and taxes are concerned for a small business, that it may be better to hire a professional, or outsource to a professional company. However these are the basics for handling payroll and taxes for a small business. Deciding what you will do with it is going to be up to you.
Handling
Handling
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