You can never plan too far ahead when it comes to payroll management. During business start-up, your payroll management will just involve paying yourself, but as the company grows, you will need to compensate not only yourself but also other employees.
Payroll management has to be plotted out in advance to make allowance for salaries and hourly wages. You may also be dealing with subcontractors for technical sales related services. Regardless, you will eventually be too busy to do it yourself and will need to hire additional support. But before you get to this stage, think about developing a clear payroll management plan so you can be prepared.
Payroll management will consist of the following issues: salary or hourly wage; bonuses and commissions; vacation pay, sick days, holidays and time off as part of a compensation package; employee health benefits and pension plans; disability and life insurance.
Payroll taxes are often not considered when setting up a payroll management plan, and they cannot be avoided. The employer part of payroll taxes will cost you money, but if you think about this expense from the beginning of the business you will not be surprised later.
If you think about payroll management before you have employees, you will be prepared to grow and develop your business. Come up with a clear plan to handle employees, subcontractors and the expenses that accompany them.
Blogged By: Computer Consulting 101 Professional Kit