Employ Staff? All Your Payroll Questions Answered
If you have never employed any employees before, there is one part of becoming an employer that could really have you stumped. And that is the payroll. Thought paying staff would be simple? Think again! There are lots of rules and regulations you need to follow to ensure that you are correctly paying all staff. It’s a lot to learn, but once you know all you need to, you certainly won’t forget things. Here are all your payroll questions answered!
Do I Need To Set A Payment Schedule
Yes, you do. You can’t just pay your staff whenever you feel like it! First of all, you should decide whether you will pay everyone monthly or weekly. Then pick a set day that you will make the payments. Even if your employees carry out a variety of different jobs, they should each be paid on the same day. The day on which you pay your employees shouldn’t just be set to keep them happy. It is important that you stick to a routine, as it will help you to know when you should file your taxes.
Do All Employees Need To Pay Taxes On Their Wage?
Of course! And you will have to pay taxes on yours as well. Most employers are responsible for getting federal tax and social security from their employees. As an employer, you are obliged to also match each employees’ social security payments. You may also need to match any Medicare tax payments. These taxes will need to be paid by you on a monthly basis. And this means there are monthly forms for you to fill out. Federal Form 941 should be filled out and submitted every three months. And don’t forget to file your annual Form 940.
What If My Business Is Low On Money?
No matter how badly your company may be doing, you still need to pay your employees for their work. Try to always save some money for salaries. However, if things do get particularly bad, there are certain things you can do to raise some extra cash. For example, you could get an invoice loan to tide you over until some of your invoices are paid. In certain situations, some employees may be willing to work for free until the business gets back on its feet. But this only happens when employees are extremely happy with their job, and office morale is very high.
What About Timekeeping?
It is very important to keep a track of the hours that each employee works. This will help you see if they have been working any overtime. If they have, you should increase their pay accordingly to cover these extra hours. Whatever happens, it is important that you pay your staff for all hours worked. Otherwise, you could be infringing on their rights as workers. If this is the case, you could end up being taken to court or an employment tribunal.
I hope that this post has all of your payroll questions answered and cleared up all about paying your staff!