Taking the leap to begin your own startup is exciting and nerve-wracking! abc Payroll is a go-to for businesses across MA, NH, and CT, so we have seen it all when it comes to properly executed and inadequately maintained payroll systems. For that reason, we have a few suggestions for startup businesses should consider when thinking about payroll.
Take the time to classify your employees and contractors correctly
When small businesses start, it’s not surprising if they decide to hire freelance contractors and transition later once the business begins to gain traction. The most important aspect of classifying your employees is ensuring they are classified correctly. There is a very definitive line between these two different types of employment and how that can impact your payroll, not to mention the serious federal penalties that you could be fined with.
Never mix personal and business finances
It’s understandable that with limited funds to begin your business, you might not see a point in keeping these finances separate, but we suggest always taking that extra step. When lines are blurred between business and personal finances, it can be a nightmare to differentiate between the two, especially in instances where your business is audited.
Plan and organize, no matter how small your business is
One of the many benefits of a startup is that your business is easily adaptable. Do not let that become one of your faults! Take the time to organize your business correctly from the inside out. Plan, document, and track all aspects of your finances. You will be happy you did down the road, our experts can guarantee it.
Ensure your compliances are handled correctly
It might be hard to believe, but payroll is often a full-time job. Payroll, HR, and tax compliances must be met, and that often takes the help of another professional. Keeping track of these responsibilities protects your employees and your business. Missing deadlines or neglecting these areas of your business can cost you money in penalties and interest.
abc Payroll is the ultimate payroll solution in New England, and we would love to help you create the perfect plan for your business. With more questions, please call our experts today at (978) 251-3003.