This past year was the first year that I was fortunate enough to work from my home. Working from my home has been a wonderful change for both personal and professional reasons. The only thing that caused a slight issue was the tax filing changes that I had to endure. The office in my home was now considered a tax deduction. I had to get some help learning how to deduct the things that are allowed on my federal taxes. If you are new to working from home and have a home office, this blog can help you learn what you need to know before tax time rolls around.
As a business begins to grow, the owner usually has to expand by hiring employees to assist with running the core functions. For example, when a business expands from a small building to a large building, there is usually the need for hiring employees to run the registers, stock the aisles, and perform several other tasks. Being new to hiring employees could be time-consuming when it comes to keeping the payroll aspect of the business organized. The risk of not having an organized payroll is too great to take, which is why you need to hire a professional if you are dealing with such a predicament. A payroll service provider can help in multiple ways, including handling aspects of your business involving the Internal Revenue Service (IRS).
1. Keep Track of Employees' Work Schedules
If you do not intend to hire an accountant to manage the payroll for your business, you will have to perform the task on your own. Without the proper accounting skills, it is easy to make mistakes that are detrimental to your business in multiple ways. Rather than taking such a risk, you can outsource the payroll needs of your business to a skilled accountant. The benefits include knowing that a professional is keeping track of the hours each of your employees work and how much money should be paid. For example, a payroll service provider will consider any time that was taken off from work, holiday pay, and anything else that is necessary to ensure that your employees are not over- or under-paid.
2. Ensure That Taxes Are Being Held Back
You can get into major trouble with the IRS if your business taxes are not filed each year, but filing without accuracy can also lead to trouble. For example, as a business owner with employees, you are required to withhold a percentage of each employee's paycheck for their personal tax obligations. There are also other taxes that you might need to withhold, such as taxes for social security. A payroll service provider can ensure that the appropriate taxes are being withheld so you will not find yourself in trouble with the IRS.
3. Maintain Accurate Financial Records
It is wise to keep records of every financial aspect of your business, as you will need them at tax time. Due to accountants being trained to make accurate calculations and be organized, it is worth hiring a payroll provider to maintain your financial records. If your business is ever audited by the IRS — which could be random — the records will come in handy.
For more information, contact a payroll service provider near you.
Share21 July 2022
