Managing payroll can be daunting for a small business owner, especially if you're handling it in-house. Fortunately, we've assembled a few key tips to help make payroll easier.
First, no matter how you ultimately handle payroll, you need to cover the basics. If you're just setting up your system, it's important to put in place the proper documentation, filings and processes necessary to run it. That includes:
• Obtaining an Employer Identification Number, or EIN, from the Internal Revenue Service, which you can do for free, either online, via fax, or by U.S. mail. Check to see if you also need state and local employer tax IDs for your business.
• Considering whether your workers are employees or contractors and making sure they fill out the appropriate tax forms. Each employee should complete a W-4 form, which will let you know how much to withhold in taxes, while independent contractors should fill out W-9 forms.
• Learning about federal, state and local tax filing deadlines, record-keeping requirements and any other legal compliance matters surrounding payroll, including the intricacies of withholding various taxes and confirming accuracy of employees' Social Security numbers and names.
• Making sure to keep employee records up to date, including updates to marital and family status, address and benefit program participation, which may all change the amounts paid and withheld.
• Opening a business bank account that can handle all your key payroll activity.
• Deciding what your pay periods will be.
How can you simplify this process?
Whether it's you, your bookkeeper or accountant or someone else — in-house or outside — clarify who's in charge of payroll and all the attendant requirements.
Delegating this task will free you up to focus on running and growing your business. No matter who has the job, you and your employees need to be clear about who's keeping on top of this key business function.
We're in the midst of a technology revolution in which automation plays a starring role, leading to great leaps in efficiency and productivity. Whether you use cloud software on your own or outsource your entire payroll operation, the process can be much easier if you rely on the right technology.
A 2019 National Small Business Association survey found that 55% of companies were managing their payroll online.
Using software that integrates payroll and your broader accounting needs should greatly ease these tasks for your company.
Roll by ADP, an intuitive, chat-based payroll app for small businesses, allows you to pay your team in seconds from your mobile phone, either sending a check the same day or making a direct deposit the following day. You can run payroll literally by typing in "run my payroll" — as easy as sending a text. The app sends reminders so even when you're busy, you won't forget to pay your team.
The app, which also handles taxes and produces payroll reports, allows your employees to easily enter and update key personal data, receive payday alerts and view their job compensation and benefit info from their own phones. You can also use Roll by ADP to reward your hard-working team with raises and bonuses.
No matter how small your business, you can enjoy the benefits of sophisticated, user-friendly technology to help manage your payroll.
Roll by ADP is literally ready to roll, so easy and intuitive that you won't need any training to use the app — and not to mention, it comes with 24-hour chat support. The versatile app uses artificial intelligence to check for errors and becomes more familiar with your business. And you won't need to commit to a long-term contract.
Want to give this powerful solution a try? Download Roll by ADP for a free trial to see how the app can simplify and enhance your payroll process.