Have people working with you or for you? If so, do you have a contractor or an employee? The distinction is very important.
In addition to there being differences in what you are allowed to ask of a contractor, or what you can expect from an employee, the way they are compensated is vastly different – as a business owner or employer, it is your responsibility to know those differences.
With all the other responsibilities you face in managing and growing your business, do you have time to keep up with all the details involved in handling your own payroll? There are several things that go into payroll, and if you don’t have time to dedicate, you could end up in a mess. If you are a new company, you will be required to file your payroll with the IRS and the state. Establishing your employee payroll can take a lot of time.
Employee payroll can quickly consume most of your time if you haven’t considered outsourcing to a third party. Withholding Medicare, Social Security, Federal Taxes, timely reporting and filing, matching funds, unemployment insurance – all of it can become overwhelming.