If you’re a new business leader or an entrepreneur ready to launch your first venture, you’ve got a lot on your plate. You have to keep your overall business mission in mind while fine-tuning operational details. You probably lay awake at night thinking about your business. You dream of the success you’ll have and everything you’ll do with the big bucks you’re about to rake in.
You probably have nightmares too. They may be about handling difficult employees or managing the daunting process of payroll. You don’t want to be afraid of payroll. You know that it’s an integral part of your business. Making sure that your payroll is done correctly and on time will win the confidence of your employees. It will boost your entrepreneurial self-esteem. Of course, it will also keep you out of costly legal trouble.
Understanding Payroll Laws
Every business owner or leader should have a basic understanding of payroll laws. You’ll need to be versed in the payroll basics for your municipality and state. You should also become familiar with federal regulations, particularly if you’d like to land government contracts. Keep in mind that you don’t need to become a payroll specialist. You just need to get a solid grip on the basics of how payroll works and what infractions can get a business into hot water with the government.
There are a number of options for business leaders who want to learn more about payroll. If you have a business mentor, ask him or her to talk about payroll with you. If possible, sit down with an experienced financial director or payroll department leader. You may also wish to buy books about payroll processes and laws. Some business leaders choose to attend seminars that cover payroll basics, though these can be both expensive and time consuming.
Remember to maintain open communication with your employees about payroll. Individuals who are launching new businesses should ask employees for their feedback about pay dates and pay practices. Employees might strongly prefer direct deposit or payroll debit cards over paper checks. Even if you can’t accommodate all of their requests, employees will be pleased that you’ve asked their opinion.
Taking Advantage of Payroll Solutions
After you’ve established a basic understanding of payroll laws and processes, you’ll need to decide how payroll is going to be handled for your company. Some companies have in-house payroll departments that handle a variety of financial tasks. While there are advantages to such departments, many business leaders now consider them unnecessary.
Traditional payroll departments are often replaced by an online payroll service. Such services allow business leaders to upload basic timecard and schedule data to a secure website. An outside payroll company takes care of processing all employee pay. Such companies employ payroll professionals who understand the intricacies of state and federal laws.
In addition to saving you the headache of doing payroll on your own, online payroll services also save you the trouble of overseeing a payroll department. Even the best employees have to be monitored. Payroll companies allow business leaders to focus on developing stronger products and services. They eliminate worries about violating payroll laws. Such companies also offer the direct deposit and debit card services that employee’s value. As a business leader, you stand to gain substantially from contracting with such a company.