You’re ready to take the big leap into hiring a virtual payroll service, which truly is the fastest, easiest way to get your payroll out consistently and accurately. Whether you are a new business owner or you have been around the track a few times, there are certainly some important facts to know. As VAST jumps in to help you streamline your business with a virtual payroll service, we will give you all the information you need. As you're gearing up for the switch, here are a couple of big-time tips to help the transition go smoothly.
Classify your employees properly. Just because you have an employee who is willing to be paid as an independent contractor does not mean it is legal to pay them this way. If the employee keeps regular hours and performs the same kind of work your company offers, more than likely they will need to be paid as an employee. Of course, there are a few exceptions to this and we can help you navigate the laws surrounding employee classification.
Don’t forget to budget for taxes. Especially for business owners who have never had employees before, taxes can come as a surprise because you are often times required to match employee contributions to Medicare and Social Security. There are also state and federal taxes along with an obligation to contribute to the federal unemployment fund. Failing to budget these expenses from the start can create serious headaches down the line.
Calculate and pay those taxes automatically! When VAST sets up your virtual payroll service, we use Intuit, a secure and trusted program with exceptional reliability and accuracy. With the simple click of a button, Intuit will calculate your payroll taxes for you. It is a great way to avoid all the fees and fines that come with missing IRS deadlines.
Hiring a qualified virtual payroll service can really clear up time in your crazy schedule. Look for a firm that offers timeliness, accuracy and ease of transition when you're making the decision to step into the future of payroll.