Managing payroll can be a big undertaking, especially for small businesses. As a business owner, payroll and payroll-related services for your employees is necessary, but it can be hard to have the time to sort out all the work. If you’re new to payroll services and the processes that come with it, here are some frequently asked payroll questions we at Brabo hear all the time from clients who are unfamiliar with how the systems work.
How Often Should My Small Business Run Payroll?
It depends on state laws and whether a union decides on a regular payroll. If neither of these applies to your business, you can create your own payroll calendar. Generally speaking, it’s best to run payroll weekly or monthly. Try to keep your team member’s availability in mind along with yours. Keeping payroll convenient and timely for everyone is the best practice.
Which Basic/Important Payroll Terms Should I Know?
- Gross Pay
The total amount of pay before taxes and deductions.
Wages that are left out of the team member’s earnings in order to pay for taxes, benefits, and other required materials.
Any payments that include the value of benefits received by an employee. These can be monetary and non-monetary forms of payment.
- Net Pay
Total payments after taxes and deductions have been subtracted from earnings.
- Pay Stub
A document that summarizes the number of hours worked, and the rates paid for those hours, deductions for taxes, and benefits. These are listed as demonstrated factors used to calculate a team member’s pay.
What is an EID?
EID stands for an Employer Identification Number, also known as a Federal Tax Identification Number; this is required for businesses to pay taxes and commonly appear on loan applications and credit reports.
Which Tax Forms Are Related to Payroll?
While reporting requirements vary by business, the following tax forms are most commonly used for employment purposes:
- Form W-2: Wage and Tax Statement
- Form 940: Employer’s Annual Federal Unemployment (FUTA) Tax Return
- Form 941: Employer’s Quarterly Federal Tax Return
- Form 944: Employer’s Annual Federal Tax Return
How Should I Pay My Employees?
In general, you should pay your team members by paycheck, direct deposit, or pay card. Rules can vary from state to state if you choose an electronic or alternative form of payment. Before deciding on a payroll method, always be aware of state regulations ahead of time.
How Can Brabo Payroll Help Me?
As a local payroll company, we understand how difficult it can be to keep things running smoothly and be accessible to answer questions at any time. We offer problem-solving payroll service solutions that give you resources to help your business thrive.
Contact Brabo Payroll for more information!