Payroll and Sales Tax Couldn’t Be Any Simpler
Payroll and sales tax can be difficult to understand.
So, you’ve started your own business. But, having to navigate the tricky payroll and sales tax system can be daunting on your own. Not only will you need to be aware of your account information, but local laws and taxes that apply.
To make this process a little easier, we’ve outlined some of the top tips for completing your payroll and sales tax deductions.
Familiarize Yourself with Local Laws
Payroll laws are not consistent. Given this inconsistency, every small business owner will need to familiarize themselves with their local payroll laws. These laws typically vary depending on where you live and will have a serious impact on how much you pay employee, deduct in taxes, and more.
For example, minimum wage and overtime laws change significantly depending on where you live in the U.S. If what you are paying is incorrect, retrieving any lost money can lead to serious disagreements.
You should also be aware if there are any requirements set out by the IRS. Depending on your local state and federal laws, the IRS might have stipulations outlining exactly how you should be keeping your payroll records.
Without proper filing protocol, you might find yourself getting into trouble in the future. Finally, be sure to familiarize yourself with deductions. Deductions for things such as health insurance, wage garnishes, and child-support should all be worked out before issuing a paycheck. Again, having to back-track and correct mis-issued checks can be difficult.
Consider a Payroll Certificate
If you feel overwhelmed trying to understand payroll and sales tax, consider getting a payroll certificate. A payroll certificate is a basic educational course that specializes in payroll and accounting services. Almost all community colleges offer these sorts of programs which can be a good idea for small business owners.
Although a great resource to add to your resume, some of these courses may be too in-depth for small business owners.
Non-Credit Courses
If heading into a college course is too in-depth for you, consider taking a non-credited course. These courses are often a great resource to learn, without the long-term commitment that comes with credits.
Many of these courses can be found online (and for free). As such, it’s a great way to learn more about the process and introduce yourself to the basics.
For example, it will give you a helpful walk-through of your company’s financial ratio (the payroll-to-sales number) From here, you will gain a better understanding of why this number is important so you can scale/schedule employees based off it.
Otherwise, without these important figures, your budget for the year will be skewed.
Speak with a Professional
The final thing that we recommended you do is to speak with a professional. Whether it is an advisor, mentor or accountant a financial professional can be a great resource to compliment your business.
These professionals will be able to take a look at your current financial position. This can be done by reviewing all of your sales, wages, and payroll expenses. Having a second – eye to review these finances can shed light on figures that may have been overlooked or spot errors that were in them.
The professionals will also be able to recommend areas where you should cut costs. Or flag any potential issues that can occur from the way you are handling your finances.
Ultimately, handling payroll and sales on your own can be difficult. However, there are a number of resources available to help. If you would like a more personalized look at your current financial situation, please get in touch with a member of our team today.
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