LongSchaefer How To Video #2: How to Add Your First Employee to Your Payroll
In this How-To Video, LongSchaefer key relationship and PayOptions owner Ryan explains how to add employees to your payroll. Due to the liabilities and various stipulations associated with payroll taxes, it’s important to make sure your employees are being entered into your system correctly. Government bodies are constantly changing their regulations, and it can be quite overwhelming. But, if you understand the basic structure of payroll taxes, you can greatly reduce the risk of mistakes and the stress that comes with adding employees. Read on for a step by step breakdown, or watch the video to hear it directly from PayOptions owner Ryan whom LongSchaefer trusts for live payroll services.
Independent Contractor or True Employee
Paying an independent contractor is different than paying a true employee, so first, you have to determine what type of employee the individual is. If they’re a true employee you’re required to withhold federal income tax, state income tax, Social Security Medicare, and, potentially, local taxes. In addition, there’s your cost of Social Security Medicare, state unemployment tax, federal unemployment tax, and workers compensation coverage. All of these taxes, other than worker’s comp, are due to different government entities at different times with different reconciliations. These reconciliations are either quarterly or annually. This is an area where LongSchaefer can help. We help with the after-the-fact reconciliation of your payroll tax returns.
Know What You’re Liable For
Once you’ve decided that the individual is a true employee, you’ll need to understand what you’re liable for. First, make sure you have an accurate document of your policies. An employee handbook can outline what you expect of employees and what your policies are from an HR standpoint. This gives both you and your employee a clear statement so everyone’s on the same page. It’s important that your employee handbook, if that’s the route you go with, is up to date and completely accurate.
Find an Outsourced Solution with LongSchaefer
Keeping up with the nuances of payroll can be a full-time job, so you have to ask yourself, how much is your time worth? For most people, they have a variety of other critical aspects of the business that they’d rather be attending to. Even if you can find the time to take care of the payroll, are you fully confident that you’re navigating all the regulations and avoiding liabilities? By choosing an outsourced solution, these are questions you don’t have to worry about. We can take care of everything, no matter the size of your business. LongSchaefer works hand in hand with PayOptions to custom tailor our tax services and solutions to meet your needs. Contact LongSchaefer today or view our website for more information and to see how we can help you.