If you own a small business, you know that payroll requires extensive time, labor, and effort to manage and maintain. It’s crucial to have an efficient, accurate payroll system in place so your employees are paid correctly and promptly. The accountants at Bergamo Tax & Financial Solutions, located in Watertown, CT, understand the complexities involved with paying your employees and offer a guide to understanding payroll functions for small businesses.

A Small Business Owner’s Guide to Payroll

What Is Payroll & How Do Small Businesses Process It?

Payroll refers to the money that your small business pays to its employees and the records that detail the wages for each employee. It is a necessary function for all businesses, requiring a detailed understanding of tax law and an organized payroll system.

Although some business owners try to manage their company’s payroll on their own, it requires detailed knowledge of tax law, current regulations, and a highly organized payroll system to be accurate. To eliminate stress and minimize payroll-related errors, many small businesses outsource their payroll to an accounting professional who manages the process for them.

Why Is Small Business Payroll Important?

Not only does payroll include the payments you provide to your employees, but it also includes taxes, paid time off, sick pay, and other compensation-related issues. If your business can’t perform payroll functions accurately, it can create legal problems that might bring your company to a standstill. Additionally, the federal government has complex employment laws that every small business must adhere to in order to comply with the law.

The professional accountants at Bergamo Tax & Financial Solutions provide a range of affordable payroll services to small business owners, helping them pay their employees correctly and on-time. Give them a call at (860) 274-1655 to speak to a payroll expert. You can also visit them online to learn more about their CPA firm.