Hiring your first employee is an important milestone—a sign your business is doing so well you can’t handle it on your own. As nice as having someone to help out can be, it does mean taking on some additional responsibilities, some of which are subject to state laws and federal regulations. Roy E. Carter, CPA, PC, a payroll services provider serving businesses throughout Staunton, VA, has some tips for getting your system off on the right foot.

3 Areas of Payroll to Get Familiar With

1. Setting Up Pay Periods

Before taking on your first employee, you’ll have to determine how your pay period and payday schedules are going to work. Most companies choose to pay their workers on a weekly or biweekly basis, with payday occurring a week after the end of the period. Remember that you’re obligated to maintain that schedule, so give yourself enough time to calculate your employees’ hours and wages.

2. Collecting Taxes

Both you and your employees are required to pay a variety of taxes on wages. In addition to federal obligations like income, Medicare, and Social Security taxes, you might also have to collect state and city taxes, depending on where you live. In Virginia, for example, employees have to pay state income taxes, with tax brackets that differ considerably from the federal code.

3. Establishing a Timekeeping System

Finally, you’ll have to figure out how you’re going to keep track of your employees’ hours. A simple logbook may be okay at first, but it might not be a good long-term option if you plan to keep growing your business. Many professional payroll service companies offer advanced solutions that keep track of your employees’ hours and automatically calculate their wages.

The highly experienced accountants at Roy E. Carter, CPA, PC, have built their reputation providing a wide array of payroll services to businesses throughout the area. Whether you’re just getting started or looking to streamline your existing systems, their experts will handle the entire process for you, so you can concentrate on building your business. To learn more about how their payroll services can help and schedule an appointment, visit their website or call (540) 886-6251 today.