Payroll Tax Services Tips for Small Businesses
June 27th, 2018
Sorting through all the different payroll tax services in California can be a daunting and confusing process. The more you know about what goes into making one of these services efficient, the better.
That’s why we’ve put together some useful payroll tax tips for small businesses.
Making sure all of the foundations for your payroll are in order is a priority. At the top of the list should be classifying your employees. For example, some contractors and outsourced workers don’t have any money taken off any checks that you write for them.
Understanding the differences can keep you on the right side of the IRS and save you money in the long run.
Due diligence is one of the cornerstones of any good business. It’s important that you understand what your responsibilities are to your employees and the government. Staying on the right side of your tax requirements also means understanding the definitions of income.
Putting together the very best Los Angeles payroll tax services means understanding how to differentiate. For example, if you give an employee a gift card that’s considered income by the IRS.
Understanding income isn’t just about making sure that your payroll services are up to date; it’s also a good idea to be able to help your employees so they know what should be filed as income on their personal returns.
If they have a problem with the IRS, they’ll more than likely come to you to help them straighten things out so you should get out in front of any potential issues.
Pay on Time
When clients order goods and services from your company, it’s always in your best interest to deliver them on time. The same goes for having an excellent payroll system and making your payments to the government.
There’s always a temptation to procrastinate, but you’ll need to keep everything above board to keep your business running smoothly. If you’re a small business, you might need to come up with some money for the IRS several times a year. A little preplanning goes a long way here.
One of the other advantages you should consider is an outside service. Outsourcing your payroll allows for an objective third set of eyes that can find any problems. Why not get in touch with us today so we can tell you all about our comprehensive California payroll tax services?