Payroll and Taxes: What Your Small Business Should Know
Small business ownership is part of the American Dream. Starting a business in the U.S. contains fewer barriers to entry than in any other county. Still, nuanced requirements, laws, and regulations exist. Even seemingly simple processes include various elements. For example, one area that provides multiple aspects is payroll and taxes. Keep reading to learn more about payroll and taxes and how Bayou Bookkeeping & Tax Services can help.
If you want to pay even a couple of employees, you’ll want to set up payroll. However, payroll setup can be confusing and time-consuming, especially for small businesses. The truth is that payroll includes many elements, many of which we’ve captured below. Therefore, it makes sense that many small businesses use a payroll provider or have an accounting firm or financial services company perform the task.
An employee’s paycheck includes their regular wages and any bonuses, commissions, or other forms of compensation. As a business owner, you need to determine the frequency of your pay periods. Additionally, be sure to factor in the cost it takes to run payroll. Finally, it is vital to ensure that these payments are accurate and timely, as your employees rely on them for their livelihood.
Garnishment deductions are court-ordered deductions from an employee’s wages. For example, they can be for things like child support or back taxes. If you have employees who have garnishment deductions, Bayou Bookkeeping & Tax Services can help you set up your payroll to ensure that you deduct properly.
Benefit deductions are deductions from an employee’s paycheck for health insurance or retirement savings. These deductions can be complicated to set up, but it’s necessary to ensure that the deductions are taken correctly. Moreover, your employees should get the benefits they’ve selected.
Payroll Tax Processing
Payroll tax processing is the process of calculating, paying, and reporting payroll taxes. Taxes include federal, state, and local. It is essential to make sure that you pay your taxes on time and comply with all local, state, and federal requirements.
Payroll Tax Reporting
Payroll tax reporting is the process of filing the required reports with the government. Reporting occurs quarterly and annually. Bayou Bookkeeping & Tax Services can help you prepare and file these reports, ensuring accuracy and completion. We can also help you with compliance issues.
Federal Payroll Tax Filings
Federal payroll tax filings are the reports businesses must file with the federal government. This includes quarterly and annual reports and W-2 and 1099 forms.
Payroll Tax Escrows
Escrow of payroll taxes is the process of setting aside money from each paycheck to pay taxes. Good financial stewardship includes ensuring you withhold the right amount of money from each paycheck and pay the taxes on time.
Get Help with Payroll and Taxes
Many details exist regarding payroll and taxes, but Bayou Bookkeeping and Tax Services are here to help. If you’re a small business owner in Walker, Baton Rouge, or Livingston, call (225) 442-1137 to see what we can do for you.