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Challenges to Employers in Calculating Employees’ Time Worked

Bob, a small business owner, has two non-exempt employees. Sue regularly begins work five to 10 minutes early most days and works late anywhere from 15 to 20 minutes every day. On the other the hand, Mike usually starts his workday within five minutes before or after his shift begins and “clocks out” about five minutes after his shift ends. From a payroll perspective, how should Bob handle calculating the time each of these employees worked? (more…)

Posted in: Payroll, Payroll Processing, Rules, Regulations and Laws

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Small Business Giving Back to the Community

As a business owner myself, I think it’s important that entrepreneurs and small business owners not only work, live and play in their communities, but they also give back to their communities, too. Besides showing that your business is operated in a socially responsible manner, giving back can help you distinguish your company from your competitors. (more…)

Posted in: Churches and Non-Profit Employers, Payroll, Payroll Processing

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Small Business Take a Stand to Reduce FUTA Payroll Tax Cost

Our payroll services clients – and all the business owners in Indiana – are paying more than the norm according to the Federal Unemployment Tax Act (FUTA). In fact, as was explained in an earlier post, this year businesses will pay 2.1% of the first $7,000 EACH employee earns. The norm is approximately .6%!

What is the difference in your payroll expense? (more…)

Posted in: Payroll, Payroll Taxes, Rules, Regulations and Laws

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Workplace Garnishments: What Your Small Business Needs to Know

When it comes to processing employee’s payroll with multiple garnishments, there is an established hierarchy of which one takes precedence.  The Bankruptcy Abuse Prevention and Consumer Protection Act (BAPCPA) was signed into law on April 20, 2005 and enacted on October 17, 2005.  Prior to this law, Chapter 13 bankruptcy orders took priority over other garnishments.  There was no limit to this federal deduction.  Along with consideration for the type of order issued is the date on which it was issued.  Date order, earliest to latest, establishes when the set amount begins coming out of employees’ paychecks.  If you’re unsure of the pecking order, here’s an overview of some of the most common types of garnishments. (more…)

Posted in: Payroll Processing, Rules, Regulations and Laws

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Business Credit Card Use Makes Recordkeeping Easier

If you have a small business, you may be wondering if you should have a credit card for your business. The answer to that is “Yes!”

A credit card can be a great benefit for entreprenuers. It can enable your business to build its credit standing, which can be useful when obtaining loans for future expansion and growth. Also, it provides a source of quick capital and makes it easier to manage business transactions.

Let’s say you’re at work running your business and the need for a calculator comes up. You run to the store to purchase it. What are you going to use to purchase it? Cash? A credit card? (more…)

Posted in: Bookkeeping and Accounting, Operating a Small Business, Payroll

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The Goal of Networking – Meeting New People

If you want to run a successful small business, networking is an essential part of the process. However, many people dread walking into a room and introducing themselves to total strangers.

Most people attend business networking events and only talk to the people they already know. If this is what you do, then what’s the point of attending networking events? If you’re not actively seeking new people to meet and discuss business with them, why go? (more…)

Posted in: Operating a Small Business, Payroll Processing

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Form I-9: Verify Your Employees’ Identity and Employment Eligibility

For the past few years, the Department of Homeland Security has been cracking down on employers who hire illegal immigrants. Therefore, it’s important that your company has all of its employee paperwork in order. And, this includes having an Employment Eligibility Form (I-9) completed for all new hires. (more…)

Posted in: IRS and Tax forms, Payroll, Payroll Processing, Rules, Regulations and Laws

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Are Payroll Deductions Legal or Not?

As an employer, you can withhold the standard deductions permitted by federal, state and local law from your employees’ paychecks, such as federal, state and local income tax, Social Security and Medicare. But what about other deductions? Can you legally deduct them or not? (more…)

Posted in: Operating a Small Business, Payroll, Payroll Processing, Rules, Regulations and Laws

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Benefits of Working with a Smaller Payroll Company

Perception can be everything, but it’s not always true. This week, I heard for the first time that a sizeable company had wanted to do business with me in the past. But, the manager thought since I’m not as big as ADP, Paychex, or some of the other larger payroll companies, I might not know what I’m doing since my business is smaller. Fortunately, I had the opportunity to try and sell her one more time. And this time, I took more time explaining why a smaller payroll provider can be so much better than working with a bigger company. (more…)

Posted in: Operating a Small Business, Payroll, Payroll Processing

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Understanding Employer Contributions to 401(k) Plans

As an added benefit, many small businesses choose to offer an employee retirement plan, such as a payroll deduction IRA, a SIMPLE (Savings Incentive Match for Employees) IRA or a traditional 401(k) plan to their employees. While there is no law requiring companies to contribute to the retirement plan (with the exception of Simple IRA and SEP IRA plans), many employers do choose to make contributions because it’s an effective tool for hiring and keeping top-quality employees. Also, businesses receive a tax benefit for contributing to employees’ 401(k) accounts.

(more…)

Posted in: Operating a Small Business, Payroll, Payroll Processing, Retirement plans

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