It is normal for you as a business owner to be confused about all the things you need to do in terms of financial paperwork for your operations to run smoothly. If you are one of these business owners then you need to read more now, as we seek to make things easier for you in this article. Increased competition in all industries have continuously made it hard for both digital and brick and mortar stores to run successfully. Many businesses fail to run smoothly because of the tremendous amount of paperwork they deal with. These businesses have to deal with paperwork regarding inventory, payroll, accounts receivables, and many more. It is vital for you to learn your financial responsibilities if you want to run your business successfully. In this site, we will be guiding you on how to go about organizing and managing your paperwork because we know how overwhelming it can be. Read more on this page to get info on some of the most vital financial paperwork.
First on our list is the paystub. A paystub is just as vital as a check when making payments to your employees. The pay stub has info on the number of hours your employees have worked, the rate per hour, the deductions made, and any other information that is required by your state’s law. As an employer, you have either of two choices when it comes to creating pay stubs; you can do so by yourself, or use electronic means to create them. If you are looking for an easy and cost-effective way to create your pay stubs, you should go with the electronic option. Creating pay stubs electronically is recommended because the chances of your making mistakes are low. You will not make mistakes because the machine handles the math part, which is where most employers make mistakes.
Every employer is required by the law to make certain deductions on all their employees’ payrolls. Social security, Medicare, and taxes are some of the most common deduction made to employee payrolls. Taxes vary from year to year, but social security and Medicare are steady. You need to create your pay stubs electronically because doing so eliminates the risk of making tax mistakes since they are kept up to date on changes in tax rates. It is important to note that the amount of tax to be deducted depends on the number of dependents your employees have, and whether or not they want the dependents included in the withholding formula.
It is vital for employers to know that the W2 is not their employees’ responsibility but theirs. All employees are required to have their W2 forms at tax time, and this is why they need to be ready before then. These forms are required before January 31.