9Top Payroll Questions Answered

1. 9Top Payroll Questions Answered

2. All employers need to run payroll – even smaller businesses – but that doesn’t mean that it’s an easy process, and that you might not have a whole bunch of questions about how it works and what you need to do as an employer. To help you meet your payroll needs as a small business employer, we’ve got answers to 9 of the most commonly asked questions: 1.What is an EIN? An EIN is an Employer Identification Number, and you’ll be assigned one by the IRS so that you can identify your business on different tax documents.

3. 2.Are there any payroll terms I should know? Some of the most common are as follows: Compensation – wages, bonuses and small employee benefits Deduction – money withheld from an employee’s wages for taxes, benefits etc. Gross wages –an employee’s wages before deductions Net wages – an employee’s wages after deductions

4. 3.What’s the best way to run payroll? Many smaller businesses are choosing to outsource their payroll requirements, as this often a more affordable and convenient option. 4.Should I pay my employees via direct deposit? Used by the majority of employees, direct deposit is a popular and convenient method, and in some states, employers are even allowed to implement mandatory direct deposit.

5. 5.What is supplemental pay? This is any money you give to an employee on top of their regular wages, and can come in the form of bonus payments, commissions and severance pay. Because this pay is not a part of an employee’s regular wages, taxes are withheld differently from them. 6.What’s the difference between an exempt and nonexempt employee? Employees that are not exempt must be paid overtime wages; exempt employees must meet the following requirements:

6. They must make at least $35,568 per year/$684 per week • They must be paid on a salary basis • They must have job duties that are considered exempt (executive, administrative or professional) An employee that doesn’t meet these requirements, is considered to be nonexempt and must be paid at least the minimum federal wage and overtime. 7.What taxes must I withhold from an employee’s paycheck? Federal income, Social Security and Medicare taxes must be withheld, and in some cases, state and local income taxes may need to be withheld, too.

7. 8.What forms should I know about? Below are some of the most common forms you’ll come across as an employer: • Form W-2 – wage and tax statement • Form W-3 – transmittal of wage and tax statements • Form 940 – employers’ annual federal unemployment • Form 941 – employers quarterly federal tax return • Form 944 – employers annual federal tax return

8. 9.How long do I have to keep payroll records? All payroll records must be kept for at least 3 years according to the FLSA, and records of employment taxes for at least 4 years after filing the 4th quarter, according to the IRS. To help simplify payroll for your small business, and stay on top of all your commitments as an employer, consider outsourcing your payroll requirements. They will also be able to answer any more questions you might have about payroll in general.

9. Apollo Payroll is one of the premier small businesspayroll companies in Miami Beach and Coral Gables. Apollo Payroll is dedicated to delivering expert advice, responsive service, and highly accurate payroll processing and reporting to ensure the success and growth of the business that we serve. Our services include comprehensivepayroll service in Miami and other cities in Miami-Dade County, employee background check and group health insurance in Coral Gables & Miami.