Do you need to hire employees for your small but growing business? New employers face many challenges to get things right when they begin their role as employers. What can you do to ensure that things go smoothly at the start? Here are five steps to take.

1. Use a Payroll Service

Although you might be able to 'go it alone' for payroll, this is a dangerous option for new employers. There are many rules that must be followed at state and federal levels. You'll be responsible for tax collection and remittances. Many employees will not understand when errors affect their paychecks. Avoid such potentially big problems by hiring a professional service to do the hard parts. 

2. Visit the State Labor Board

Even with the assistance of a payroll service, familiarize yourself with your state's labor board website. This is the primary entity whose rules you'll follow in matters such as how to pay overtime, what compensatory pay you must offer, minimum wage changes, and how to handle terminations and final paychecks. Develop the habit of checking this website and any related ones when you have questions. 

3. Follow the Rules

There are many rules overseeing payroll and labor functions. While some may seem onerous or unnecessary, develop the habit of following the guidelines as much as possible. This will help you avoid trouble for the company both now and in the future. Likewise, your business won't have to adjust how it operates as it grows and becomes subject to even more labor rules. 

4. Give Yourself Extra Time

Don't make your early pay period schedules too demanding. Weekly payments will be hard to keep up with. Bi-weekly or semi-monthly payroll gives you and your employees more time to collect and correct timesheets, prepare payroll for the service, research questions, and get the right paperwork. In addition, schedule an interval between when timesheets are due and when paychecks are expected in people's accounts. 

5. Write It Down

Payroll is one element of your operation that cannot be sidetracked when other things come up or someone is gone. You must complete it on time, every time. Failure to keep up with payroll and do it correctly will result in big problems. As such, create a set of detailed, written instructions that anyone can follow to complete all steps in your process. Do practice runs with other appropriate employees. 

If you follow these few steps, your new payroll responsibilities will go smoother and be less stressful for you and your newly-hired staff. Want to learn more about getting started as a new employer? Meet with a payroll service provider for more information. 

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