When a small business opens, they have big dreams of making a difference in their community, providing a service that improves people’s lives, and of course, making a profit and growing their small business into a bigger business. But along the road, there are dozens and dozens of challenges that business owners must find a solution to in order to be successful. One of the many challenges is being able to provide employees with their paychecks. Even though employees may join your small business because they believe in your mission or the service you are providing, they ultimately just want to get paid!
So how can small business owners grow and be successful while still providing their employees with a reliable income? It sounds easy enough, but there are a variety of challenges that business owners must face simply within the payroll realm of the business’s operations.
Here are the top five payroll challenges that small business owners must overcome in order to be successful.
When it comes to payroll compliance, it often comes down to spending money in order to prevent losing or spending a significantly larger amount of money if or when your business does something wrong and is sued or audited. There are several payroll laws and organizations in place to ensure that businesses are paying their employees appropriately and fairly. Organizations such as the Fair Labor Standards Act and Equal Pay Act, as well as laws surrounding exempt and non-exempt, overtime pay, and employees who receive tips that need to be followed. Laws and legislation are updated regularly and not staying up to date with compliance could put your business at risk.
There are dozens of payroll services out there that help business owners save time and stress when setting up new employees and calculating payroll each pay period. However, business owners, HR, or whoever is handling payroll does need to spend some time making sure that everything is calculated correctly and accurately. With the right payroll software that is intuitive and easy to use, business owners can be confident that the data submitted is accurate, helping them save time that can be used to grow their business.
We mentioned above that ensuring payroll accuracy takes time, but not how important it is to the success of your company. Not only does inaccurate payroll hurt your employees, but it could also put your business at risk for future lawsuits or simply unhappy employees even after the error is resolved. A quality payroll service can help by predicting future costs as you add more employees, it can help calculate taxes, reduce downtime, troubleshooting, and more — all in an effort to increase accuracy.
Paying taxes, in general, is a significant challenge for small businesses, but payroll taxes specifically can be cumbersome, confusing, and time-consuming. Tax laws are also changing regularly and it’s essential that your business keep up-to-date with all payroll tax laws. This will ensure that your employees are being taxed properly and that your business is remaining compliant. Failure to comply with tax laws can put your business at risk of fines and a loss of time.
Today, businesses are using a variety of software that helps them to increase efficiency. However, that means a significant amount of highly important data is online and business owners are putting a lot of faith in the software’s ability to protect that data. When data breaches are becoming more and more common, security is becoming a new challenge as well.
The task of calculating payroll is a challenge that business owners face on a regular basis and could have a significant impact on the success of the company. Even a minor error that occurs during one month’s payroll can quickly escalate into a larger problem when it’s not caught and resolved. Even though there are a variety of challenges that business owners face in terms of calculating payroll, the good news is that there is a solution!
Journey Business Solutions offers an easy to use payroll service that features a variety of benefits and services. Our payroll software will take on the responsibility of ensuring that everything is calculated accurately and that laws and regulations are up to date. With a reliable and secure software that handles all of your payroll tasks and reduces the risk of errors, you can put more time towards growing your business. Our payroll service provides:
- Automated processing
- Self-service app for your employees
- Seamless integration with time-tracking and HR
- Calculates and pays taxes for you
- Software and tax support when you need it
If you want to reduce risk and improve efficiency in your office, experience the benefits that a payroll service can provide. Contact the team at Journey Business Solutions today for a free demo!