New business owners have many essential tasks to juggle, from finding the best shop location to hiring top-notch staff. Payroll is another duty that must be handled; however, it can seem complicated if you’re a new business owner. Here’s what you need to know about payroll so that you can start the process with a better understanding and have it completed with accuracy.

Taxes for Employees & Employers

Unless you rely solely on freelancers, you must withhold taxes from your employees’ pays. Additionally, you need to ensure that taxes are remitted to the IRS on time, or you can risk hefty fines and penalties. Along with employee taxes, business owners should also pay the necessary employer taxes to ensure they remain in compliance.

Scheduling Pays

There are several acceptable pay schedules that are used in modern workplaces. Semi-monthly schedules involve paying your workers on the 15^th and 30^th day of each month. You can also opt for a bi-weekly schedule, which means payment would be received on a designated day every other week. Additionally, most employers will distribute compensation via direct deposit because it saves money on printing and sending out paychecks. 

Compensation Packages

Payroll can also include other types of compensation, such as vacation days, performance bonuses, and referral rewards for bringing new people into the company. These incentives ensure your workers feel appreciated, which can improve morale and productivity.

Have a professional handle these tasks so that you can focus on the business. If you want to outsource payroll services, contact the detail-oriented team at PayrollHR Hawaii, in Kilauea. These professionals will help you save money by avoiding late tax penalties, distributing paychecks on time, and ensuring employee bonuses. Learn more about their virtual bookkeeping services online, or call (808) 828-2070 to schedule a consultation with a specialist.