Benefits of Profit-SharingA profit-sharing plan is an employer-sponsored contribution plan where the employer contributes pre-tax dollars to an employee's account based on their business profitability. Companies of all different sizes can offer these plans, and this benefit is entirely up to the employer's discretion. As we slowly wade through the great resignation, one can surmise that when organizations share profits with their team members, this helps increase employee retention. Business owners can also attach a vesting schedule where a certain percentage is attained each year. Besides employee retention, this added benefit also saves on taxes. If your company has had a successful year, implementing this plan will reward your employees without adding extra payroll taxes. As an added benefit, employees can also save on income taxes if they put this contribution towards their retirement, thus reducing their adjusted gross income. Finally, studies show that productivity levels increase when your personnel can partake in the profit margins they are creating. When team members are directly impacted through their efforts and hard work rather than only being compensated for their time, they are more motivated to go that extra mile.
Types of PlansThere are four different types of profit-sharing plans you can use to reward your employees.
1. Deferred Profit Sharing Plan (DPSP)
With this plan, the employer shares the profits made from the business with all the employees enrolled. These funds are managed by a plan's trustee, which can gain more considerable investments over time. This money may be withdrawn partly or entirely within the first two years of membership.
2. Cash Profit Sharing Plan (CPSP)
A cash profit plan involves paying a portion of profits directly to your employees that are taxed as regular income. Business owners may make disbursements in stock rather than cash, especially if you have a vesting program. CPSP can be a good incentive for younger employees who prefer having more money now versus retirement.
3. Employee Stock Ownership Plan (ESOP)
An ESOP enables employees to have ownership in the company either given to them or the opportunity for them to purchase. This plan type encourages team members to do what's best for shareholders since the employees themselves own this stock.
4. 401K Plan
A 401K or retirement plan can be defined as a type of profit-sharing plan that has tax advantages to the saver. There are two basic types of 401Ks traditional and Roth. These differ primarily in how they're taxed. Keep in mind, once money goes into a 401K, it is difficult to withdraw before retirement without paying taxes and penalties.Regardless of the type of plan you choose; the profit-sharing percentage is typically between 10 to 20 percent of the total profit amount distributed. Create guidelines for how much and how often to pay that are appropriate for your firm. Make sure the specifics for each employee are documented in a profit-sharing agreement.
Profit-Sharing vs 401KA 401K plan, named after the 401K tax code section that created it, is a tax-advantaged retirement account. Most of the time, this type of retirement plan involves a funding combination of both employer and employee. The IRS limits the tax-deductible money one can invest in a 401K plan each year. Employees can contribute up to $19,500 to their 401K plan for 2021 and $20,500 for 2022. In addition, an employer may provide a matching plan, which can incentivize prospective candidates to accept a position. Even though some organizations treat profit-sharing as part of a 401K package, it doesn't have to be centered around retirement. Profit-sharing is often not tied to an employee's retirement plan. Meaning an employee can withdraw this money as soon as they are fully vested. Profit-sharing plans are flexible and allow employers to contribute when they choose, as long as there are substantial and recurring contributions. An employer is encouraged to contribute even if you have an underperforming year.
Options to ConsiderThere are specific criteria to establish when determining who is eligible for profit-sharing in your organization. Here are a few things to consider when creating your plan.
- Employee Eligibility - This type of plan requires a particular set of employee criteria to be met before being allowed to enter into a sharing fund. Examples are employment amount of time (1 year), US-based, over 18 or 21 years of age, or a union member.
- Contributions - A business will decide how much to contribute to a participants' plan. Make sure to specify when this contribution happens, either at the end of the year or quarterly. Remember, you can deduct up to 25 percent of the compensation amount paid during the taxable year to all participants.
- Distribution - An employer can select the forms of distribution: lump-sum, periodic, annuities, or ad-hoc distributions. If you decide to create a vesting schedule, show how much is available after each period.
- Investing - When creating a plan, you will need to decide whether to allow your employees to direct the investment of their accounts or to manage the monies on their behalf. If you are selecting the investments, make sure to update actively to secure the value of your selections.
ConclusionRegardless of good intentions, those operating the plan can still make mistakes. Fortunately, the U.S. Department of Labor and IRS have correction programs to help profit-sharing plan sponsors correct plan errors, protect participants' interests, and keep the plan's tax benefits. Establishing an ongoing review program makes it easier to spot and correct mistakes in plan operations. Profit-sharing plans can serve as a powerful incentive for many organizations for employees and owners alike. Employers may find a profit-sharing plan invaluable in today's economy by boosting morale and employee retention while providing a tax benefit to everyone. FINSYNC can help you establish a profit-sharing plan that tracks contributions, investments, and distributions over time so you are ready for tax season and can experience financial harmony within your organization.
1099 FormTo understand the W9 Form, it is beneficial to have first-hand experience with 1099 forms. Businesses file 1099 forms when they have paid more than $600 to an independent contractor or non-employee during the year. You do not need to withhold any money when you provide payment; however, you must use the 1099 form to declare the exact dollar amount your company disbursed to the IRS. Therefore, the 1099 form serves as a record for the total amount of compensation a non-employee received. Before a contractor begins a work assignment, your business must deliver the W9 Form; then, the contractor must complete it before starting their project. This Form gives your business the necessary information to provide the 1099 form at the end of the tax period.
Purpose of W9 FormThe W-9 Form, officially titled "Request for Taxpayer Identification Number and Certification," is used to verify your independent contractor's tax withholding status. They will supply you with their TIN or Tax Identification Number, which you use later in conjunction with the 1099 form. Besides non-employee compensation, here are a few other examples of W9 income.
- Cancelation of debt
- Acquisition or abandonment of secured property
- Real estate transactions
- Mortgage interest
- Miscellaneous income
Checklist for CompletingForm W9 is one of the most straightforward IRS forms to complete. Here are the required fields that all non-employed staff must complete.
Box 1: Contractor name goes here as it appears on their tax return.
Box 2 - Business name. Enter LLC, S-Corp, or sole proprietor name here.
Box 3: Box check required to distinguish between LLC, S-Corp, or sole proprietor.
Box 4 - Exemptions. Certain businesses are exempt from backup withholding, and this is when the employer is required to withhold a percentage of any future payments to ensure the IRS receives the tax due on this income.
Most likely, backup withholding will not apply unless a vendor refuses to provide a Social Security number (SSN) or tax identification number (TIN)
Box 5 - Business street address, city, state, and zip code.
Box 6 - Option box to include requestor's name or payer's name.
Box 7 - Social security number or tax identification number. If a business is a partnership, LLC, or corporation, there should already be a TIN, also referred to as an Employer Identification Number (EIN).
Box 8 - Signature required to attest to the truthfulness of all information.
Things to Look Out forIf you have a contractor who will not provide their completed W9 or TIN, the IRS requires your company to start withholding 24% of their compensation for tax money. There are penalties for failing to submit this backup withholding, and it is better to avoid this altogether and require W9 completion before work begins. Since the W9 Form contains sensitive information, always make sure to use secure channels to send. If your organization uses email for the hiring process, ensure the contractor sends the form back encrypted. If a single person owns the LLC, list the name of the owner on the "name" line in box 1 and the name of the LLC on the "business name" line in box 2. If the business owner provides both SSN and TIN, the IRS would prefer the owner's Social Security number. At the end of the tax year, the information contained on the completed Form W9 gets used to prepare 1099 forms like 1099-NEC, 1099-MISC, 1099-INT, and 1099-DIV. Therefore, ensuring the W9 Form gets completed accurately will save you time during tax season. Managing your money effectively is about having the right team. Take advantage of FINSYNC’s large network of bookkeepers and accountants.
What Is Unlimited PTO?Paid time off (PTO) is a benefit an employer provides their employees to receive payment when they take off work for vacation, personal days, holidays, and sick time. A company's PTO policies establish the guidelines that determine when and how an employee can receive payment for time off work. Unlimited PTO means that employees can take time off at their discretion and utilize it whenever needed. Manager approval is often required to ensure there aren't too many employees requesting it at the same time during high workload demands.
Pros of Unlimited PTO
- Great Recruitment Tool - Even though unlimited vacation is gaining popularity, many organizations still haven't implemented it. Therefore, those with this competitive edge show they value and trust their employees.
- Saves the Company Money - Unlimited PTO began with silicon valley start-ups. Tech companies wanted to keep employees' vacation rollover off the books while providing an extraordinary benefit. Now many organizations are taking advantage of not paying out unused vacation at the end of the year or when employment ends, simplifying cash flow management as less liabilities are accrued.
- Less Paperwork - Monitoring paid time off creates a lot of work in approving requests, tracking, and reporting. When a business incorporates unlimited PTO, all administrative burdens go away—removing the additional tasks and paperwork for managers and human resources.
- Boosts Morale - Employees feel more satisfied when given the autonomy to take their leave as they wish. If your employees are engaged, you might see up to a 21 percent increase in profitability.
Cons of Unlimited PTO
- Employees May Abuse the Policy - When a business has established unlimited PTO, there is the risk of employees taking advantage of the policy. Some may use more time off than others without fear of their employment ending. Most studies suggest this is very uncommon; however, some individuals may exploit this policy.
- Not Truly Unlimited - Obviously, under this policy, workers cannot take off months at a time. If this consistently happened, unlimited PTO would become a costly failure. Because of this fear, many organizations have developed specific parameters around appropriate use. Requiring manager approval, 4-6 week limits, or making it performance-based are all stipulations you may want to convey in your policy.
- Might Lead to Burnout - By far, the most common problem associated with unlimited vacation is that employees end up self-limiting the amount of time they take off. Underuse can be a bigger problem than overuse. The worst-case scenario is that employees end up getting paid less with no value attributed to their PTO while companies gain more of their employees' productivity. Overall if employees do not take enough time to rest and recharge, there is the potential they will suffer burnout at work.
SolutionsBusinesses should be transparent about using unlimited PTO within their organization before hiring. At the same time, job seekers should try and get precise details about the company's policy prior to starting their employment. Many companies will encourage employees to take time off to prevent employee burnout. Some will even make it mandatory, such as two-week vacation minimums when working in this environment.
ConclusionA successful unlimited vacation policy can have a positive impact on your employees. You can build a culture of mutual trust which will boost both productivity and morale. A genuine interest in employee well-being and happiness motivates these employees to work harder. An unsuccessful unlimited vacation policy lacks guidelines around how much time off to take. Employees that are unsure how many days is "too many" will likely default to less or follow the norms set by individual managers, who might not be taking enough time off themselves. Finally, companies need to ask if they're making these changes for employees or their bottom line. If employees use 100 percent of their PTO and the employer wants to reduce their small business expenses, then perhaps such a program makes sense. However, if the main reason to offer unlimited vacation is a marketing tool for recruitment but is severely underutilized, you might want to consider a different approach. Learn more about FINSYNC’s reliable cloud-based payroll management to pay your employees, contractors, contributions, and taxes online
Definition of Holiday PayHoliday pay or sometimes referred to as paid time off is any alternative compensation an employer offers employees during holidays. This additional pay could be in the form of time-and-a-half when working on a holiday or being paid for the day when not working. There are eleven federal holidays observed by the US government. While most government offices are closed these days, many small businesses choose to operate “business as usual.” The FLSA or Fair Labor Standards Act does not require payment to employees who do not work during vacations or holidays. This type of paid time off is an agreement between an employer and an employee and is documented before that employee's first day of work. Likewise, companies are not required by law to pay extra for regular work hours. Holiday pay is considered a benefit to employees and is entirely voluntary. Sometimes an employer will pay time and a half or double time for individuals who end up working on a holiday, but this is not required. That being said, restaurants’ and retailers' demand for labor is at an all-time high. It is now highly encouraged to pay employees time-and-a-half or double time when working a holiday shift.
2022 Holiday Schedule
Here are the dates for the 2022 national holidays.When a holiday falls on a weekend, that holiday usually is observed on the following Monday or preceding Friday.
EligibilityAnyone who works on a holiday is required to be paid their standard rate of pay. Most often, there is consistency in the paid time off system for all full-time employees. An employee should understand the paid holidays a company offers before accepting the position. You do not want to be surprised when a holiday rolls around, and you are required to work or learn you are not paid for this time off. Contractors and consultants are not subject to holiday pay or any other type of paid time off given to regular employees. Exceptions may be made given in their contractual agreements.
Part-Time or Seasonal EmployeesSince companies are not legally required to provide paid time off for any full-time worker, part-time and seasonal employees are treated the same. Organizations are required to detail their holiday policy in their employee handbook. Most companies outline the pay structure for both seasonal and part-time employees. Paying more, even double or triple during the holidays, incentivizes employees to work during these busy periods. Employers feel more compelled to provide better benefits to all employees in a competitive economy to prevent individuals from jumping ship for a better offer.
Providing Benefits to a Small BusinessA fundamental part of just about any compensation package in this very competitive environment is time-off benefits. Employers can provide vacation and holiday pay to their employees even though this isn't a federal requirement for all businesses. Currently, many organizations are struggling to fill career openings. These prevalent openings force companies to compete for local and international talent and make paid time off a standard and consistent practice. Even better, studies show that workers who are paid for holidays show increased productivity, morale and feel more valued at work. Paid holidays can be a major motivator to employees since they know that they will be given days to rest without losing out on wages. For a majority of small businesses, customer needs take top priority. However, this doesn't leave much time for self-care, which is why holiday pay is so important. It is a chance to relax and recharge while increasing output and overall job satisfaction. Process payroll with confidence using FINSYNC’s online payroll and timecard for employees and contractors.
1. User-Friendly and Ease of UseChanging from a paper-based payroll system or in-house software over to a more advanced payroll system should not require an extensive learning curve or time-consuming training sessions. Your small business needs access to software that offers a simple solution that doesn't require you to take classes to implement.
2. Simple and Effective SetupThe right payroll solution must offer both a simple and effective setup. It should provide easy conversion of any historical details needed and present assistance options if you need support.
3. SecurityPayroll handles some of your business's most sensitive information: bank account details, social security records, salary figures, etc. As such, properly securing this data is of the utmost importance, and failing to do so could make your business liable for harsh penalties. Therefore, security is an important aspect when choosing payroll software for small businesses. A cloud-based solution with good user management controls provides you with better security than keeping the information on your computer.
4. FeaturesSeveral important features are listed below, and you should ensure your payroll solution includes these:
– Direct Deposit
When funds go directly into your employees' bank accounts, it brings convenience and speed, alongside a lower risk of fraud, global deforestation, and lost checks.
– Tax Compliant
When you pay yourself or your employees, there are a variety of payroll tax guidelines that must be followed. These include social security, income tax, Medicare, plus state and sometimes local taxes.
A good payroll solution will help you to automate this function by deducting, reporting the amount, and managing the remittance process for you to each taxing authority. If your payroll provider deposits taxes for you, this eliminates stress about late payments or mistakes. Your payroll provider has you covered.
– Several Income Types
The best payroll solution should allow for various incomes, including commissions, holiday pay, expense reimbursements, bonuses, and any other taxable benefits.
– Variety of Deduction Types
It's essential that your payroll software also can deduct costs such as dental, vision, medical, and life insurance.
– Electronic Filing
A good payroll solution will take care of the E-filing of W2s & W3s to the SSA and various states. These filings are a necessity, especially as your small business grows.
5. IRS CompliantYou must have an integrated payroll system with the latest IRS tax protocols for all 50 states at the local, federal, and state level. These ensure you are always up to date and minimize any risk of mistakes.
6. AffordableThe final criteria for choosing a payroll platform is the cost for many small business owners. Don't skimp, but make sure your payroll provider's pricing structure and services are entirely transparent. It is necessary to know the exact cost based on how many employees you have and your selected services.
7. Customer SupportWhen you use a payroll system, you have control over your payroll. However, you mustn't feel alone if you need help or assistance. A company that offers a strong support network will help you feel more comfortable and confident with running your payroll. Depending on your business needs and requirements, you might factor in the type and level of support you will receive when deciding on payroll software for your small business. FINSYNC has unmatched US-based customer support available. After you are matched with a local representative, you can reach them by email, phone, or chat.
Time-Tracking ToolIf you employ hourly employees, the first thing you will need to do is accurately record how much your employees work. Time tracking is mandatory for hourly employees, for several reasons:
- Benefits tracking, if hourly employees work more than 30 hours per week
- Overtime compensation, if your business offers it
- Job costing in accounting, and for accurate customer invoicing
- Tracking hours can make it easier for you to allocate costs to different projects that your salaried employees work on
Calculating Benefits and Withholdings CorrectlyThe second and, as we stated earlier, most important aspect of payroll is the withholdings and benefit payments that you need to account for as the business owner. Taxes are at the top of this list:
- Federal income tax
- State income tax
- State unemployment tax
- Federal unemployment tax
- Social Security
- Court-ordered withholdings, such as garnishments or child support
- Other withholdings, such as repayment for payroll advances, union dues or pretax contributions to healthcare savings accounts
- Paid vacation, holiday, sick days
- Time-off related to family illness
- Workers’ insurance (health, dental, vision, life, and/or disability)
- Contributions to retirement plans (401(k))
- Profit-sharing and bonuses
Managing AccountingOnce paychecks are deposited and all taxes and withholdings are calculated correctly. Then, you have one last step to do: put the payroll information into the general ledger. If you’re working with an accountant, you will send over the payroll sheet to them, and they’ll take care of the rest. However, if you’re using FINSYNC, everything is automatically put into the general ledger. No need for manual work.
Full Financial Control with FINSYNCOne of the big benefits of using FINSYNC is the complete overview of all of your payroll expenses: salaried employees, hourly workers, and contractors. This provides better financial insight into how payroll costs are affecting your bottom line. Also what you can do to correct any bad projections. You will also have a better chance of spotting irregularities in payroll. For example, is someone logging fictitious hours, or are an employee’s overtime hours not being submitted correctly? Another helpful aspect of FINSYNC is customer support. You get a dedicated support representative that works with your business when you need help. Whether you need help setting up a new payment method or updating the marital status and tax information of an employee, your dedicated FINSYNC representative can walk you through the steps. Having a dedicated rep saves you time and frustration. That way you won’t have to re-explain the particular situation of your business every time you need help. Ready to tackle payroll management with less headache? See how FINSYNC can help you stay on top of your payroll responsibilities with a free trial.
The Balancing ActSo, what's the best way to keep this from happening to you when you file your 2019 tax return? The key is to strike the right balance between how much of your paycheck you're keeping and how much is being set aside. Small business owners and self-employed individuals, who typically will have to make quarterly tax payments to the IRS, should check to make sure they are calculating their payments properly. It’s possible that you may have to increase or reduce how much in tax you pay each quarter. That is to adjust to the changes in the tax law. Conveniently, IRS.
IRS TOOLSSmall business owners and others who receive substantial income that's not subject to withholding tax, such as dividends and capital gains, but who also draw a salary as an employee of their company, can use the IRS' new tool to calibrate their individual quarterly payments. They may find they can avoid or reduce their quarterly withholding tax payments by increasing how much tax is set aside from their paycheck, for example. Small business owners can also use the IRS' Form 1040-ES as a worksheet to pencil out their estimated tax for 2019. While every household's situation is different, most people who have only one job likely can make adjustments in how much of their pay is set aside for taxes by tweaking their IRS form W-4, which employees submit to their employer. The amount of federal income tax that's taken out of your paycheck depends on how much you earn. Also how many exemptions you list on your W-4. The IRS has taken steps to update the form for the 2019 tax year. That way it takes into account the changes in the tax law. Which eliminated personal or dependent exemptions. Prior to the tax law changes, employees would determine how many personal exemptions to take on their W-4. That would help their employer determine how much income tax to withhold. The new form allows workers to reduce the tax withheld from their paycheck if they have itemized deductions and other income adjustments, such as contributions to retirement accounts. But the new W-4 is not nearly as simple to fill out as its predecessor. It pays to use the IRS' tax withholding calculator as a guide. It generates responses that are helpful to fill in the form.
A Helpful ToolThe Tax Withholding Estimator can be used by workers, even those who are self-employed, retirees and others. It can help users determine whether they are having the right amount of tax withheld from their paychecks. For independent contractors, it calculates whether they are on track with their required quarterly estimated tax payments. Navigating the estimator requires answering a series of questions about your household income and taxes. The responses are used to come up with an estimate of how much income tax you’ll owe and how much of that you've already paid in, whether through direct payments or from tax withheld from your paychecks. The estimator walks you through steps to calculate your income and how much you've had withheld in income tax. It also allows you to factor in income from other sources, like a second job. The online worksheet lets you apply the standard deduction. For a single filer is $12,200, or itemize your deductions by factoring qualified expenses. For example, mortgage interest, charitable donations and medical expenses. The calculator also lets you work in tax credits, such as for purchasing an electric car. Once completed, the estimator shows whether your current withholding has you on track to owe, get a refund at tax time or have a zero balance. You then have the option of choosing how to adjust your W-4. Depending on whether you want to end up with nothing owed, but also no refund, or to have the IRS return the extra money you paid over the course of the year. Clicking either option generates instructions on how to fill in the W-4. It's pretty simple.
FeaturesAmong the features of the withholding estimator are tips and links to help you determine if you qualify for any tax credits or deductions. It also includes a way for workers who are self-employed but also have income from wages or other sources to determine their withholding tax. You'll need to reference information in your most recent paycheck stub, and last year's federal income tax return. If you're married or filing jointly, you'll also need the same documents from your spouse or partner.
Making AdjustmentsThe IRS recommends that workers check their tax withholding and complete a new W-4 every year. Also when their financial situation changes due to marriage, divorce, a new job, among other big life changes. To make changes to your W-4, download a copy of the form on the IRS website. Then, fill it out using the suggestions from the estimator, then submit it to your employer. If you feel you're on course for a hefty tax bill next April, remember you can also opt to make a payment or increase estimated quarterly tax payments to the IRS. If you do end up changing your W-4 now for the 2019 tax year, you'll want to recheck your withholding again in January. That's because any changes you make at midyear in your withholding may not be ideal for all of 2020. The IRS is urging workers to use the estimator to review their withholding for 2019. You can find it on the IRS website at www.IRS.gov/withholding. Doing this sooner, rather than later, is better. It will give you more opportunity to have more tax withheld every paycheck. Minimizing the likelihood that you'll be writing a big check to Uncle Sam next year. FINSYNC's integrated payroll system, which combines payments, payroll, projects, accounting, cash flow projections, cash flow management, expenses, reimbursement and time tracking, can also help small businesses come tax time. The intuitive online system can process payments and accurately comply with federal and state employee tax withholding requirements. Including full-time employees and independent contractors who require the issuance of a 1099 tax form.
Payroll Management SupportManaging employees and their payroll is one of the most costly areas for many businesses. Integrating payroll with other back-office functions and smart online tools can simplify and speed up the payroll process overall. In addition, ensuring greater accuracy. FINSYNC's system of accounting tools links a small business' payroll with their other general ledger accounts. Then, creates a virtual hub that tracks all financial transactions. It also has a built-in direct deposit function. Which automatically generates accurate tax returns and payments, and includes software for tracking work hours for employees. You can use an integrated payroll process to pay not only full-time employees but also independent contractors. The system can also adapt to suit firms that pay employees based on commission. Or on how often they deliver a product or service. Here are 3 reasons you should rely on intuitive software for managing your payroll.
Detailed Insight Into Your Cash FlowManaging cash flow is essential to keep a business thriving. Payroll is one of the biggest recurring expenses for an employer. To effectively manage a business' cash flow needs, it makes sense to give managers a steady, real-time view of the company's outlays. Especially when the time to cut payroll checks comes around. Contrast these benefits to the standard approach small businesses often use to handle their payroll and related bookkeeping tasks. Typically meaning relying on employee timesheets that are not turned in until the end of the week to gauge hours worked. And consequently, the company's payroll for that pay period. If, like most businesses, you rely on timely invoicing to help maintain your cash flow. You have to calculate the timing of invoices and any pending expenses from a spreadsheet or other bookkeeping method to begin to get a clear picture of how prepared you are to fund your payroll needs. Integrating payroll functions with other administrative tasks easily avoids all of this. "Cash flow management becomes more effective and information for owners is more readily available in an integrated environment," Olsen says.
Improved Access to CapitalUnderstanding how your business is doing day-to-day makes it possible for entrepreneurs to manage their companies more effectively. Accessing current and reliable information on your business is much easier with a responsive, integrated system. This can also enhance your business' access to capital. As a track record of solid performance increases the likelihood of being approved for a business loan. FINSYNC's integrated payroll system combines payments, payroll projects, accounting, cash flow projections, cash flow management, expenses, reimbursement and time tracking. In conclusion, even with all of these capabilities, it can still be up to 30% more affordable. Compared to standalone services from traditional payroll companies. So, ask yourself. Can your business really afford not to use an integrated payroll system? Save up to 30% over your current provider with FINSYNC's payroll solution.
Save TimeSetting up payroll can be daunting. There’s a lot more to it than simply determining how much each of your employees should be paid. You need to factor in benefits, make sure the appropriate amount of taxes are withheld and meet compliance regulations that vary from state to state. When you set up your payroll within an accounting platform like FINSYNC, which syncs up all of your small business finances in one place, taxes are calculated automatically. This automated bookkeeping not only saves you a significant amount of time, it can also dramatically improve the accuracy of your payroll. Intuitive payroll software can streamline your efforts even further by integrating time tracking and accountability into your projects. Mobile-enabled time tracking that’s synced up to your payroll can make it simple to calculate accurate payments. Geo-fencing and IP tracking provide visibility so you know the hours submitted were actually at the job site. This is especially true if you work with contractors in addition to full-time employees, both of whom can use the time-tracking tool. Integrated payroll software makes it seamless to pay both W-2 and 1099 employees on the same cycle.
Save MoneyWhen you don’t have the budget to hire a full-service payroll company, innovative software is a logical alternative to tackling the task yourself — especially when you consider the amount of time and resources the DIY approach requires. Integrated payroll software like FINSYNC can cost 20 to 30 percent less than standalone services like ADP or Paychex, and has the benefit of being synced up with your small business finances on a single dashboard. When shopping around for payroll software, be mindful of add-on pricing. Some companies charge extra for capabilities like time tracking, integrated expense claims management and extra administrative users.
Save Your SanityWhen it comes to avoiding fines and penalties, peace of mind is invaluable. You’ve got a lot on your plate already — payroll shouldn’t add to the stress of running your small business. Online payroll tools can help you avoid miscalculations and missed deadlines. They can also help you keep up with changing regulations without any extra effort (or stress) on your part. Automatic updates ensure that you remain compliant in the state in which you operate, even when tax tables are updated. Wondering if your contractor should actually be classified as an employee? Have a question about calculating benefits? Payroll can be complicated on a lot of different levels. The best payroll software is backed by live support in the form of a dedicated, U.S.-based representative that you know by name. Let’s not forget about the importance of paying your employees on time, every time. When you’re staring down a million different deadlines, payroll is something that simply can’t wait. Well-designed payroll software can take the crucial task of paying your employees off of your plate. Relying on intuitive payroll software is simply a smarter way to run your small business. Save time and money so you can concentrate your efforts on growing your business. Learn more about FINSYNC's simple, reliable, affordable cloud-based payroll.
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