Payroll and bookkeeping tips in Waukesha | Edith Christian CPA

Handling payroll typically involves sending ou...

Payroll and bookkeeping can be a difficult job for a new business owner.  Waukesha.  Here are some tips for you to look into.

Having a staff on payroll can seem very commonplace as well as essential to running a small business, but many owners get in trouble with Uncle Sam because they don’t understand the complexity of payroll tax law. On the flipside, by not fully understanding the rules, it’s also common for business owners to overlook ways to manipulate employee pay to save money.

With that said, here are a few tips for business owners to keep their payroll on track and in compliance with the IRS:

1. Make sure that you properly classify your workers. Just because a worker agrees to be paid as an independent contractor doesn’t mean it’s the legal way of paying that person. If the worker performs the same services as offered by your business, the person must usually be classified as an employee. Like with anything related to the tax code, there are exceptions so for more in-depth information on this topic, check out IRS Publication 15.

2. You will need an employer identification number (EIN) and you will need to supply this number to your payroll-processing company. If your business entity is a partnership or corporation, you already have a number. If you do not have an EIN, contact the IRS at 1-800-829-4933 to apply for one.

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