Part of starting a company on the right foot is keeping your employees satisfied. When it comes to paying your employees on time, here are some tips to follow.
Did you know that one of the challenges startups need to overcome is a lack of structure? Refine your goals, working culture, and train your workers well. Don’t disappoint your employees with late payment.
Want to learn more? Keep reading to find out.
Create a Payroll Schedule
If you’re paying employees once a week, it could get expensive. Most payroll companies will charge the customer each time to process payrolls. If you’re a startup, it might not be worth it to pay your workers each week.
Do you prefer to pay your employees twice a month on the same day of the week? Most people choose the first and third Friday of every month. This pay period is a good option if you have salaried and part-time workers.
Collect Employee Information
The W-4 provides information on tax withholding. If you have any independent contractors, you’ll get their W-9s. This form will certify their eligibility to work. I-9s will verify employees’ ability to work in the United States.
What Are Your Deductions?
Creating Pay Stubs
Set up a Direct Deposit
Do you plan to set up a direct deposit for your employees? There will be a waiting period. It will take time for the bank to receive the request and verify that the money is in your account.
Work Out Any Issues
Don’t Misclassify Your Employees
Don’t make the mistake of misclassifying your worker. This could result in the wrong pay and your employee’s paycheck getting delayed.
If you have someone working with you as a freelancer and convert them into an employee, you could get in trouble.
The responsibilities of the job need to change. Otherwise, the IRS can fine you for misclassifying a worker.
Keep Track of Important Records
Poor bookkeeping or missing information are expensive mistakes for your startup. Breaks and time-schedules will help you keep track of your employee’s hours.
Make sure you have this information, so you don’t mess up your employee’s payroll. This could result in a delayed payment.
Don’t Forget to Pay Overtime
Do some of your employees have a fixed salary? You might think then that you don’t have to pay them overtime or track their hours.
Even if you provide them with a large salary, you still have to pay overtime. Exemptions from overtime depend on the employee’s duties and positions.
If an overworked employee speaks with a lawyer, you could get a claim for not paying overtime. You could also face other claims like failing to keep detailed time records.
These will create expenses you don’t need at the beginning. You could face negative press, which would reflect the company culture. Your employees will not like that they have received a late paycheck.
Now You Know More About Paying Employees on Time
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