For small business owners, business challenges and decisions are many. One of the most common decisions business owners need to make early on is choosing the right payroll schedule for their employees. There are a number of factors that come into play when determining the ideal schedule, including, but not limited to, cash flow needs, the type of workers being employed, state pay regulations, and overtime rules as well. With that said, the team here at Tax Alternatives put together these helpful facts on choosing the perfect schedule for paying out payroll.
CHOOSING THE RIGHT SCHEDULE THAT MEETS WITH YOUR BUSINESS NEEDS
- Payroll Options – For starters, every business owner has four basic options for paying out payroll, which include weekly, biweekly, semi-monthly and monthly. Some states do not allow all these options which is why it is important you know what your options are and to make this decision right out of the gate.
- Cash Flow – It helps to have a good understanding of both the cash flow coming into your business and that going out when trying to decide on the perfect payroll schedule. A simple strategy that many small business owners choose is that of securing a line of credit in case they are faced with a cash shortage during a payroll period.
- Choosing the Right Schedule – The structure of your small business will have a direct impact on which pay schedule you choose. Typically, when the majority of employees are paid by the hour a bi-weekly payroll is ideal since the task of calculating overtime is somewhat easy. If, however, the majority of employees are salary employees it may make better sense to run your payroll semi-monthly because there is no need for overtime calculations. In this scenario you will find that your processing time and overall costs will be significantly lower.
MAKING THAT FINAL DECISION
Outside of adhering to any state regulations that exist, choosing a payroll schedule for your small business is pretty much a personal choice. As the business owner, you know what fits best with your specific needs and the needs of your employees and the decision is sure to be a practical one when you take all these simple elements into consideration.
Outside of choosing a pay schedule that meets with the needs of you, the business owner, the business itself and your employees, there are a number of other very important payroll functions that need immediate attention as well. All of these important decisions and responsibilities belong to you, the business owner and can, in many cases, become extremely challenging and time consuming. That’s where the professionals here at Tax Alternatives come in. Our team of dedicated specialists is on hand to assist with all your payroll functions and needs. We take pride in our top of the line products and services and in our exceptional customer service rating.
THE TEAM YOU CAN TRUST
The good news for small business owners is that you can choose to outsource your payroll and all its functions to our team of highly skilled and certified experts, thereby leaving you with all the time you need to focus on the primary core of your business. Our team ensures accuracy, compliance and timeliness so as to avoid potential IRS tax audits or even tax penalties. Here at Tax Alternatives we are equipped to handle all aspects of your payroll from payroll processing, and calculating employee hours to direct deposits. You, the small business owner, is sure to benefit from our state of the art technologies and our expertise as well as your ability to minimize costs and reduce risk factors by engaging our top of the line payroll services.
If you are thinking about outsourcing your payroll services and are in need of help choosing the ideal payroll schedule for your employees, then surely you have come to the right place. Here at Tax Alternatives we look forward to serving you and to providing you with the highest quality services this side of the state. Reach out to one of our team members today and schedule your free consultation. With the Christmas season right around the corner, our Christian based company wants to send along wishes for a very safe and Merry Christmas to all our valued clients and their families!
