The key to having the right people in the right places doing the right things is supervision, entrepreneur Ned Stagg advises. Setting up a proficient team to run an organization can give the business owner more flexibility to focus on future growth.
Q&A: SETTING UP PAYROLL
Your growing business may need to bring on a dedicated support system of staff. Before you start writing job descriptions and coordinating interviews, make sure you’ve planned how you’re going to pay new employees and ensure their rights are in accordance with federal and state labor laws.
1. Do you have an Employer Identification Number (EIN)?
2. Do you need state or local tax IDs?
3. Do you want to hire independent contractors* or employees?
4. Have your employees submitted their W-4 forms?
5. Are pay periods scheduled in line with IRS tax withholding?
6. How do you plan to compensate for holidays, vacation, and leave?
7. Which payroll service will you use (in-house or external)?
8. Who will manage your payroll system?
9. Which records should stay on file, and for how long?
10. How will you report payroll taxes quarterly and annually?
For a detailed summary on tax information, check out the Employer’s Tax Guide that’s published by the IRS. The document covers your responsibilities as an employer for withholding, depositing, reporting, paying, and correcting taxes for your staff members.
*Functioning under a separate business from your own, an independent contractor is self-employed and provides their goods or services to your business.
Offering Employee Benefits
Don’t underestimate the power of employee loyalty. You want to hire great people and give them an incentive to stay and contribute to your bottom line. Providing an attractive benefits package shows your employees that you’re invested in their futures.
- Social Security taxes
- Disability insurance (required in California, Hawaii, New Jersey, New York, Rhode Island, and Puerto Rico)
- Job protected leave authorized by the Family and Medical Leave Act (FMLA)
- Unemployment Insurance
- Workers' Compensation
- Group health insurance
- Extended coverage via the Affordable Care Act and Consolidated Omnibus Budget Reconciliation Act (COBRA)
- Paid Vacation
- 401K or pension plans
- Professional development courses
- Corporate expense accounts
- Stock options
- On-site health and wellness programs
- Attendance and referral bonuses
- Flexible schedules and telecommuting options
- Unlimited sick days
- Company events and team-building retreats
- Tuition reimbursement
- Paid time off for volunteer service
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