Payroll Challenges For A Growing Business
As a business expands, so do its payroll needs. The larger the number of employees, the more complex and challenging payroll can become.
From employee onboarding to taxes and more, there are many nuances to consider when dealing with payroll. This post highlights three common payroll entry challenges of running a growing business.
Onboarding new employees can be a headache for businesses of any size. You have to ensure you provide all the necessary forms and documents for them to fill out, process their tax information correctly, and pay them on time.
When multiple employees join your team in quick succession, it can quickly become a challenge to stay on top of everything. This is especially true if you don't have an automated system in place to help manage it all.
You also have to ensure you're following all relevant employment laws when it comes to pay frequency and wage information. The overtime regulations for salaried and hourly employees vary across states, making it even more complicated.
Thankfully, a qualified payroll service can help you set up the onboarding process and ensure all paperwork is appropriately filed correctly.
The U.S. tax code is complicated and constantly changing, so staying up to date with the latest regulations can be difficult. Businesses have to ensure they are properly calculating payroll taxes for each employee and filing their taxes accurately. You also have to make sure you file on time every quarter or year, depending on your tax filing requirements.
This is no small feat considering how much paperwork is associated with filing taxes. Making a mistake with your taxes can result in fines and penalties from the IRS. This is why partnering with an experienced payroll service is so important. They can help you keep up with the ever-changing regulations and make sure you don't end up with an audit or penalties.
Tracking employee hours accurately is essential for any business, especially with multiple employees working different shifts or overtime hours. It's important to keep accurate records of when employee clocks in or out and how long they worked each day so you can pay them accurately for what they earned.
Without proper tracking systems in place, this becomes increasingly difficult as your business grows larger in size and scope. You may cut someone's pay mistakenly or fail to record all their hours correctly.
Manual time-tracking systems can be tedious and inefficient, and they are also prone to human error. A payroll service can help you set up more efficient time-tracking systems that automatically log and calculate employee hours, making it easier to pay everyone accurately. This way, you don't have to worry about misfiling payroll information or shortchanging your employees.