Taxation and Payroll for New Business Owners
Do what’s right the first time out of the gate and learn from other people’s mistakes. First rule of thumb — Hire a Professional who can show you the ropes!
4 Big Mistakes!
1. Don’t Obtain the Correct Tax Identification Numbers. Every business should obtain a Federal Employee Identification number (EIN). It’s a simple form to complete that you can download from the IRS website. It may take maybe 15 to 20 minutes to complete it. There really is no excuse not to do this.
2. Don’t Understand the True Cost of an Employee. You must take the following into consideration: Wages, Federal Unemployment Tax (.08%), State Unemployment Tax (ranges from 2% to 10%), and Workers Compensation Insurance. As you can see all of these can total up fast to a large amount of money. It’s crucial to really understand the entire cost of an employee.
3. Always Do Payroll on the Same Week It’s Due. Wrong! Allow yourself at least 1-2 days to get the payroll into your system. It will give you time to review the information for any possible mistakes.
4. Don’t Thoroughly Understand Your Taxes and Business Costs. It is important to understand costs. You need to know how these costs will affect the bottom line of your business. Otherwise, people can take advantage of your ignorance. That’s never a good thing to happen when you are trying to run a company. Be a smart responsible employer. Start now if you haven’t already.
So if you find yourself googling Tax Preparation Pittsburgh, Payroll solutions Pittsburgh, cpa Pittsburgh or whatever city, remember those 4 big mistakes above and find yourself a reputable company who can guide you to a successful business.