Focusing on your business operations is a full-time job. Running a business with employees can take additional time to ensure that you are following all the guidelines and regulations, especially in making sure that your employees are paid properly and on time. Payroll services for small business owners can save you time and worry, especially when managed by expert Tucson accountants.

State Considerations

Simply keeping up with tax forms can be a headache for a small business owner. Professional payroll services can help ensure that you and your employees are completing the right form at the right time and that you are withholding the appropriate amount from your employees’ paychecks.

For example, in the state of Arizona, all new employees subject to state income tax withholding must complete form A-4 within five days of employment. If the employee does not do so, the employer must withhold Arizona income tax at the rate of 2.7% until the employee elects the correct withholding rate for their particular situation.

Complications may arise in the new employee paperwork as the employee may request that the amount of their Arizona income tax be reduced when they contribute to the following organizations:

• Contributions to qualifying charitable organizations claimed on Arizona Form 321
• Contributions made or fees paid to public schools claimed on Arizona Form 322
• Contributions made to private school tuition organizations claimed on Arizona Form 323
• Contributions made to certified school tuition organizations claimed on Arizona Form 348
• Contributions to qualifying foster care charitable organizations claimed on Arizona Form 352.

Federal Considerations

Completing the paperwork and withholding the right amount can be challenging on the federal level as well. As an employer, you will have to:

• Calculate the federal income tax withholding based on your employee’s W-4 form (which can be changed as often as the employee wants).
• Calculate the employee’s FICA taxes on their wages at 7.65%. In addition, you must ensure that your higher paid employees’ Social Security withholding is capped at the maximum amount each year. You will then begin withholding the additional Medicare tax.  

Whether you have one employee or over a hundred, as a small business owner you have to file the required reports and make payments on a timely and accurate basis. The experts in payroll services for small business are experienced in calculating these numbers so you don’t have to stress over it.

Deadlines and Pay Schedules

Your employees want to be paid on time, every time. You will also face those deadlines for reporting to the various agencies. There may be deductions for benefits as well, including health insurance, that will need to be processed properly. Missing a deadline or not submitting a payment can result in serious issues for you and your employees, including fines and penalties. Tucson accountants know what needs to be done when in regard to payroll services, so you can focus on your core goal of managing and growing a successful business.

Accuracy, Convenience, and Compliance

Payroll is not always as simple as calculating hours worked and writing a check for the week’s pay. You may have employees who work overtime, who have deductions for things like child support, or who owe back taxes. Understanding tax requirements can be challenging, particularly when they change from year to year. Compliance with legal issues is best left to experts who are experienced in dealing with payroll for businesses of all sizes.

Your employees expect their paychecks to be accurate and timely. They work hard for you and your customers, helping your business each and every day. You want to be sure they are properly paid for their work. However, you may not have the time it takes to review all of the current regulations, accurately and promptly meet reporting deadlines, and calculate each person’s withholding, deductions, and net pay. Tucson accountants can be an invaluable asset in providing these payroll services for your small business.

Clear View Business Solutions Can Help Your Business

Laying a strong foundation for the accounting and bookkeeping functions of your business is essential to your success! The professional team at Clear View Business Solutions are experts in business finances and accounting for sole-proprietors, partnerships, non-profits and businesses with fewer than 10 employees. Contact Clear View Business Solutions to learn more about how our accounting services can help you and your business become more successful. Give us a call at (520) 544-0177.