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Many small business owners or new entrepreneurs put off hiring their first employee because of the fear that they might miss some important regulation. What they don’t know is that using a payroll service that handles this for them can offload most of this stress.
What Do Small Business Payroll Services Do?
Small business payroll services pay your employees, obviously. But more importantly, they handle all the messy details on your behalf. Services like Gusto will calculate and collect the correct employer-side taxes, calculate and deduct the correct employee-side taxes, and submit both amounts to the correct tax authorities on your behalf. We have a list of payroll vendors here. Many of them, like Gusto, are priced extremely attractively for small businesses.
In addition to paying employees, these services will issue W-2s for your employees or 1099’s for your independent contractors. They file all the required forms needed with your state. Some services let you sign up for worker’s comp insurance if your state requires it. They will also handle direct deposit or issuing checks and most will also do difficult payroll tasks like child support garnishment, tips, and onboarding.
Gusto is highly recommended on small business owner forums for their competitive pricing. Other vendors include Square, Zoho, and Quickbooks. We have a more complete list in our directory of payroll vendors. Some vendors charge per employee, some by the number of times you run payroll, so you should do some research before deciding on one. You can also find a local firm.
Lastly, you can also offload this to your accountant. Many payroll companies give free access to accountants for them to easily run your payroll for you.
Conclusion: As you can see, with taxes, unemployment insurance, and worker’s comp out of the way, hiring your first employee becomes a lot less scary and more manageable for small business owners desperate for the extra help.
Related categories: Accounting vendors, Incorporation vendors.
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- How to Calculate the Cost of Hiring a New Employee
- How to Use a Payroll Service Provider to Take the Fear out of Hiring Your First Employee
- A Roundup of the Current Top Website Creation Tools and Fast Prototyping Page Builders
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