Payroll

Where do you start?

Payroll processing is required as soon as you hire employees in your business, and your first employee may be yourself. It requires deep knowledge of local, state, and federal employment laws, as well as familiarity with relevant reporting agencies, none of which are helpful in understanding or communicating with another. 

Today’s technology offers many ways to leverage our time and talents, but if you want to build your business into an asset that can thrive without your constant attention, you’ll need to hire employees at some point. If you find a way to design a lean, 1-person show, you’ll still want to hire yourself as an employee when you reach a certain level of profitability (learn more about S-Corporation tax status). 

We process payroll for clients in-house using Dillner’s payroll software and ACH processing at People’s Bank. We provide onboarding forms for employees and collect pay and hour details on a defined schedule. We pull funds from client’s business account and direct deposit net pay into employee accounts. We file relevant state and federal payroll tax returns and year-end W-2s to the IRS and employees. We can also help manage independent contractors and file related 1099s. 

Best Practices for Client:

  • If processing payroll on your own using QuickBooks Online or another program, pay special attention at the setup phase, ensuring you have all account numbers required and enter pay and withholding information accurately. 
  • Use a standard pay period; we recommend a bi-weekly payroll one week delayed. (Example: Period starts Saturday the 1st, ends Friday the 14th, pays employees Friday the 21st) 
  • Understand the difference in nature between an employee and a contractor 
  • Collect Form W-4 and all state and local required payroll documents prior to employee’s start date. We cannot process payroll without proper documents. 
  • Collect Form W-9 from any independent contractors hired for services. We cannot file year-end 1099s without this document. 
  • Follow withholding requirements and tax payment deadlines 
  • File quarterly returns with all required agencies 
  • Ensure all employee compensation is captured through payroll. Avoid cash bonuses or gift cards in general, and notify us of any, so we can ensure compliance. 
  • Budget properly by accounting for employer taxes and benefit expenses when determining an employee’s wage 
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