The typical business, in the race towards success and profitability, must perform both core and support functions adequately. Core functions often deal with the exact nature of the business – such as developing a unique product or service and then marketing it. Meanwhile, support functions involve all the factors that allow smooth work on core functions. Human Resource Management, for instance, is an essential support function. Many enthusiastic entrepreneurs often make the mistake of focusing heavily on core functions, and only minimally on support functions. This is a great way to make a profit in the short term, and bankruptcy in the long term…
For instance, consider the support function of Payroll management. At the very base level, processing payroll is all about crediting the right amount to the right employee. Unfortunately, such a rudimentary approach manages to miss out on all possible nuances of payroll, while also squandering potential for cost savings.
However, times are changing. Many entrepreneurs are increasingly turning towards bookkeeping services in Minneapolis, MN for effective payroll management. Bookkeepers find themselves intricately involved in multiple areas of finance. As such, they possess both the knowledge and skills to build effective payroll management systems. Here’s what such a system can include…
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Employee Payroll Checks
At the core of payroll services is ensuring that employees are paid accurately and on time. Minneapolis-based bookkeepers take care of everything from calculating employee wages to processing direct deposits or issuing physical payroll checks. This involves accounting for different pay structures, such as hourly wages, salaries, commissions, or bonuses.
Federal and State Taxes Payment
One of the most critical aspects of payroll is managing tax payments. Failure to properly calculate and remit federal and state payroll taxes can result in hefty fines and penalties. Bookkeepers are well-versed in the tax requirements at both levels and ensure that all tax payments are made accurately and on time.
Employee Benefits Plans Reporting and Payments
Many businesses offer employee benefit plans, such as health insurance, retirement savings plans, and other perks. Managing the payroll-related aspects of these benefits can be tricky, but expert bookkeepers ensure that benefit deductions are correctly applied and reported.
Child Support Withholding Payments
In cases where employees are subject to court-ordered child support payments, businesses are responsible for withholding the correct amounts from employee paychecks and remitting those payments to the appropriate state agencies. Bookkeepers can manage this process, ensuring that child support payments are made accurately and on time.
Quarterly and Annual Filings
Payroll management doesn’t end with paying employees—businesses are also required to file payroll tax reports with the IRS and state agencies on a quarterly and annual basis. Bookkeepers handle these filings, ensuring that businesses remain compliant with all reporting requirements.
Annual Insurance Audits
Insurance audits, particularly workers’ compensation audits, require accurate payroll data to determine premiums. Bookkeepers play an essential role in preparing for these audits by maintaining organized and accurate payroll records throughout the year. During an audit, the bookkeeper will provide auditors with payroll summaries, including details on employee wages, classifications, and hours worked.
As an entrepreneur, it’s prudent to focus as deeply on support functions as you do on core functions. This way, you stand to ensure the long-term viability and success of your business. Engaging the services of expert bookkeepers in payroll management is just the start. With such a financial expert’s assistance, you can look into developing robust financial management systems, along with strategies to preserve capital. All you need to do is get the ball rolling and reach out to an expert bookkeeper!