Setting Up Payroll: A Critical Task for Businesses
Ahoy, you brave captains of industry, navigators of the entrepreneurial seas! Before we set sail on this voyage of discovery, let’s address the elephant in the room – or rather, the annoying reminder on your calendar that it’s time to run payroll. Again. Yawn, am I right?
The Importance of Payroll Structure
Now, you might be wondering, “Is my pay period even legal?” Well, buckle up, folks, because we’re about to embark on a wild ride through the choppy waters of payroll structure, overtime exemptions, and Department of Labor regulations. Who knew accounting could be so thrilling?
Avoiding the Perils of Incorrect Payroll Management
At Calculated Moves, we believe in smooth sailing and tranquil waters when it comes to your financial preparedness. We’re like the trusty compass guiding you through the tumultuous seas of small business growth strategy. We’re the ones ensuring you don’t accidentally steer into an IRS audit. Because let’s face it, nobody wants Uncle Sam knocking on their door demanding back taxes.
Understanding Payroll Regulations
So, let’s dive into the nitty-gritty. You’ve got employees – hourly, salaried, maybe even a few who are exempt from overtime. But did you know, if they’re not exempt, you can’t pay them monthly or semi-monthly? That’s right, folks. Weekly or bi-weekly is the way to go, and some states don’t even allow the latter. It’s the law – Department of Labor regulations and all that jazz.
Implementing an Optimal Payroll System
But don’t despair, my fellow number-crunching-averse friends. We suggest a bi-weekly payroll structure – half the work of weekly, and who doesn’t love less work? The optimal setup I’ve come across is to have the pay period end on Friday and then pay the following Friday. This setup allows you to keep control of overtime and keeps Uncle Sam happy. Everyone wins!
Staying Compliant with Department of Labor Regulations
And for those of you who are still asking why not monthly or semi-monthly – well, the Department of Labor has spoken. It’s all about keeping accurate records for overtime purposes. Only salaried employees exempt from overtime can have a monthly or semi-monthly payroll. And let’s be honest, those are as rare as a calm sea during a storm in the world of small businesses.
Conclusion: Streamlining Your Payroll Process
So, there you have it – your crash course in legal payroll structures. Remember, at Calculated Moves, we’re here to help you navigate these waters. So, if you’re looking for an easy way to streamline your payroll processing, we recommend Gusto and their app. We can even get you a sweet discount!
Thanks for joining this voyage, fellow sea-farers. Until next time, may your profits be high, your taxes low, and your payroll legal. Fair winds and following seas!
Connect with us!
Please follow us on Facebook and Instagram. Please make sure to check out our blog and our website link below. Subscribe to our YouTube channel and hit the bell to be notified when we post. Email me at firstname.lastname@example.org.
Donna Bordeaux, CPA with Calculated Moves
Creativity and CPAs don’t generally go together. Most people think of CPAs as nerdy accountants who can’t talk with people. Well, it’s time to break that stereotype. Lively, friendly, and knowledgeable can be a part of your relationship with your CPA, as demonstrated by Donna and Chad Bordeaux. They have over 50 years of combined experience as entrepreneurial CPAs. They’ve owned businesses and helped business owners exceed their wildest dreams. They have been able to help businesses earn many times more profit than the average business in the same industry and are passionate about helping industries that help families build great memories.