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PAYROLL TIPS FOR NEW EMPLOYERS

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MBABANE – You’re fired up with an idea for a new business, and worked out a strategy to make it happen.

Business for you is looking pretty promising, and now you’re ready to hire a small group of employees.

But before you get started, there are payroll tips every business owner should know before getting the ball rolling.

There is no need to stress, as there is help out there and companies like AM Consultancy are of great assistance. The latter ensures pain-free payroll with tailor-made services that include online recruiting, leave administration and mass bulk processing and realtime payslip calculations among other things. 

Below are some of the things to look out for.

 1. Patience is key.

Managing a payroll requires organisation, attention to detail and quite a bit of patience.

As a new business owner, you’ll find yourself navigating the uncharted waters of pay periods, income taxes and intimidating government forms.

These requirements can be anxiety-inducing for even the most seasoned employer.

The truth is, the consequences for even the most innocent of payroll mistakes can be damaging for a small business.

Because of this, it’s crucial for employers to understand which payroll options are best for their business.

 

2. Your payroll budget needs to be airtight

First things first when you’re becoming an employer: create a budget.

When you sort out the logistics of your payroll, it’s crucial to remember to account for both wages and taxes.

 

3. Categorise your employees and contractors

Get smart about your business and utilise the wide range of employment services to your advantage.

Discern which employees need you to gain work experience (interns), and ones who are simply needed for certain periods of time or for certain services (contract workers, or temps).

Sift through your list of prospective employees and determine what sort of position will work best for you and them and then properly classify them into a position.

Full-time employees and interns typically should be classified as employees, while contractors are a whole different story for paperwork and taxes.

 

4. Salaried vs hourly

Kick off your payroll by determining whether your employees will be salaried or paid hourly.

For the most part, putting employees into salaried positions makes the process easier for the employer to manage.

Salaries keep the payroll process consistent and eliminate most of the added stress that comes with calculating how much an employee should be paid each month.

If you do make the decision to pay employees by the hour, find a system that helps you to keep proper track of an employee’s work hours and how much they should be compensated for, whether that means punching in and out of work, or recording time spent throughout the day.

 

5. Get ready for pay day

Organise your payroll by deciding how often and when you will pay your employees.

Determine the beginning and end date of an employee’s work cycle and decide what pay schedule you want your team to function on. Payroll calculations and the related taxes that come with payroll aren’t necessarily all that complex.

But the record-keeping, filing and payment responsibilities can make your head spin if you’re disorganised.

 

6. Collect employee and employer taxes

Speaking of taxes, remember that when it comes to them, what doesn’t kill you makes you stronger.

This is especially important to remember because they won’t be the fun part of seeing your business come into fruition.

As soon as you become an employer, part of what you pay each employee becomes collected from your employees paychecks for l income tax, social security, and medical aid falls onto you.

Avoid common payroll errors by considering reaching out to a skilled provider that can help you juggle the various tasks.

 

(Additional information from National Business and Capital Services)



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