3 Ways Payroll Services Protect Your Company’s Reputation
3 Ways Payroll Services Protect Your Company’s Reputation
As a business owner, you know your company’s reputation is significant. A good reputation means you gain loyal customers who are happy to recommend you to others, bringing you more revenue and lowering your marketing costs. Employees rely on your company’s good reputation, too.
They know they can depend on you to communicate with them straightforwardly and provide a regular paycheck. In turn, they can spread the word that your company is a good place to work.
One way you can protect the reputation of your business is to use a professional payroll service. Preparing payroll is one of the most crucial business tasks, and companies must handle it with attention to detail and knowledge of accounting and tax laws. Presented to you by Virtual Tax Associates, here are three ways using a payroll service safeguards your reputation.
1. Payroll Services Help You Keep Accurate Records
The Fair Labor Standards Act (FLSA) requires that employers keep records for nonexempt workers. Records must include employee identification as well as:
● Hours worked
● Hourly pay rates
● Payment dates
● Pay periods
● Wage additions and deductions
Depending on the type of document and which state you’re in, you are required to retain records for a specified amount of time. The U.S. Department of Labor Wage and Hour Division may ask to inspect an employer’s records and request transcriptions or extensions.
A payroll service can keep your employee records up to date, store them and provide documents when you need them. What’s more, some payroll firms offer services like automated signatures, envelope stuffing and direct deposit.
Accurate, timely reporting keeps you in good standing with the Department of Labor and positions you as a reliable business.
2. Payroll Services Help You Meet Deadlines
Depositing taxes on time is an essential payroll function. The IRS requires you to report federal income tax and Social Security and Medicare taxes for both employer and employee. Two deposit schedules exist, monthly and semi-weekly, and you must review IRS publications before the beginning of each calendar year to determine which schedule to use. According to the IRS, failure to deposit on time may result in a penalty of up to 15 percent.
Payroll service companies know federal and state tax deadlines and ensure your company deposits taxes on time. Meeting your due dates not only prevents you from paying fees unnecessarily but also keeps you in good standing with the IRS.
Virtual Tax Associates works with small businesses to prepare and file their taxes online both accurately and quickly. This way, our clients aren’t subject to penalties,and are treated to customized, professional service from our team of experts. Get your quote today!
3. Payroll Companies Help You Calculate Overtime
Your employees depend on you to provide an accurate paycheck. According to the FLSA, you must pay nonexempt workers at least
1.5 times their regular rate once they work more than 40 hours in a workweek. A professional payroll company knows how to determine which employees are nonexempt and can calculate the amount they are owed. When employees don’t have to worry about getting a paycheck with errors, you earn their trust and reinforce your accountability.
Consider Auto Payroll
Even if you already have an accounting service, an online payroll service can complement it.
One feature to look for in an online service is auto payroll. It is a timesaving service that lets you set up payroll once and avoid spending hours on it each week, leaving you free to use the time saved on other elements of your business like marketing and customer service. Other benefits of using auto payroll include reduced errors, increased security thanks to data encryption and protected passwords, and simplified tax filing.
Your company’s reputation is something you build over time, and it affects the way it’s perceived both by customers and employees. Using a payroll service to help you stay on track with payroll can help you build and keep your good reputation.
Prepare Now, Earn Tomorrow
Are you currently out of work, looking to supplement your income, or simply want to earn extra to put toward savings? If so, you may be wondering if you have to take on a second or third job. Chances are, you don’t — and you can easily launch a side hustle without committing to someone else’s schedule. Before you get started, take the time to prepare yourself for the world of entrepreneurship, whether you want to open a business or engage in the gig economy.
Finances and Business Formation
Unless you plan to get paid as an hourly or salary employee — meaning someone else handles taxes — it’s a smart idea to register with the IRS to pay quarterly estimates. Virtual Tax Associates can help you get set up to pay taxes as a self-employed individual. You will need your social security number, home-office information, and other documents.
If you plan to open a business, first look for a formation service that can help you register as an LLC. You can file online and save on the attorney fees, but you’ll need to be diligent and research your state’s rules and regulations. You will also benefit from discussing with a tax professional or financial advisor the pros and cons of forming an LLC, which is often done for tax benefits and the structural flexibility it allows as you grow.
Self-Employment or Entrepreneurship?
Self-employment and entrepreneurship are often one and the same. However, before you become a freelancer or start a business, you will want to evaluate your personal circumstances, skills, and availability. As a freelancer, you are self-employed and you work on projects that fit your skillset and availability. You are still an entrepreneur, but you do not have to commit to a particular company or group of clients.
If you choose a more traditional business, which may entail hiring others or opening a brick-and-mortar location, you are looking at a greater time commitment. As a small business owner, you’ll also want to possess exceptional leadership skills and understand that your success or failure is completely up to you.
Finding Work
There are many ways to find work as a freelancer or small business owner. You can test the waters or grow your portfolio by utilizing one of the dozens of gig economy job platforms recommended by Gig Smash. You should also reach out to your friends, family, and professional network to see where your skills may be most in-demand. As a small business, you’ll want to start by writing a business plan, which will necessitate doing market research in your area and industry. This can help you get a better idea of what products or services are most in-demand and where the competition is falling short. A competitive
analysis can also help you identify potential clients that aren’t currently being serviced by existing providers.
Creating a new income stream does not have to be a difficult or lengthy process. But it does require research and you will need to be disciplined to effectively manage both your existing and new responsibilities at work and at home. Whether you want to be the next big startup or simply lend an occasional hand to other local business owners, being prepared ahead of time will offer long-lasting benefits that may help you turn your part-time money-making endeavors into a full-time career where you are in charge of your income.
Virtual Tax Associates is based in Lindstrom, Minnesota, and services individuals and small businesses throughout the US. Get a service quote today.
