10 Steps For Setting Up Payroll

 

Are you ready to grow your one-person business by adding new employees? Before hiring, have a plan in place for paying your staff members, advises Victory State Bank.

To help you set up payroll, the only community-based business bank in Staten Island, N.Y., is sharing the following tips from the Small Business Administration: 

 

1)      Get an Employer Identification Number (EIN).

2)      Find out whether you need state or local tax IDs.

3)      Decide if you want an independent contractor or an employee.

4)      Ensure new employees return a completed W-4 form.

5)      Schedule pay periods to coordinate tax withholding for IRS.

6)      Create a compensation plan for holiday, vacation and leave.

7)      Choose an in-house or external service for administering payroll.

8)      Decide who will manage your payroll system.

9)      Know which records must stay on file and for how long.

10)  Report payroll taxes as needed on quarterly and annual basis.

 

The IRS maintains the Employer’s Tax Guide, which provides guidance on all federal tax filing requirements that could apply to the obligations for your small business. Check with your state tax agency for employer filing stipulations.

EMPLOYEES AND INDEPENDENT CONTRACTORS

Distinguishing between employees and independent contractors can impact your bottom line, as this affects how you withhold taxes and avoid costly legal consequences. Learn the differences before hiring your first employee.

An independent contractor operates under a separate business name from your company and invoices for work completed. Independent contractors can sometimes qualify as employees in a legal sense. The Equal Employment Opportunity Commission created a guide for making the determination.

If your contractor is discovered to meet the legal definition of employee, you may need to pay back taxes and penalties, provide benefits, and reimburse for wages stipulated under the Fair Labor Standards Act.

 

 

ABOUT VICTORY STATE BANK

VSB Bancorp, Inc. (OTCQX: VSBN) is the one-bank holding company for Victory State Bank. As Staten Island, N.Y.’s only community-based commercial bank, Victory State Bank operates five full-service locations on the Island, including the main office in the community of Great Kills and branches in West Brighton, St. George, Dongan Hills and Rosebank.

A planned sixth branch, to be situated in Meiers Corners, has received both regulatory and building department approvals.

For additional information, Victory State Bank may be reached at 718-979-1100, or visited online at www.VictoryStateBank.com.

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