Making Payroll Easy

By: Eric Morgan

If youve been an employer for any length of time, you know that payroll can be an enormous hassle. Its like a migraine that comes like clockwork every two weeks. Laws governing how employees are paid are complex, and mistakes in payroll can be very costly in litigation, fines and penalties, or loss of employee good will. Fortunately, you can take steps to simplify payroll and decrease the recurring pain.

Outsourcing Payroll

You can eliminate 90 percent of the headache and potential for error in payroll by outsourcing it to payroll experts. A number of companies can process your payroll; you simply give them your data and they handle all aspects of payroll, from deductions to mailing or depositing the checks. A Professional Employer Organization (PEO), such as Workforce Solutions, provides payroll processing in addition to all the services you would expect an internal Human Resources department to provide, but it is a separate entity from the organization to which it delivers these services. PEOs deliver expert and efficient employee-related administration, sharing the responsibility and risk of managing workers, including making sure they get paid correctly and on time.

Common Sense Approaches

If you are the do-it-yourself type, or outsourcing doesnt make sense for your particular business, you can reduce payroll complexity and potential for error with a common-sense approach to the task. A few simple steps and tried-and-proven tools will help enormously. Payroll has been around for a long time, and many companies offer products and solutions to simplify it. Youll probably discover other ways to mitigate the risks and hassles inherent in payroll processing, but here are some beginning steps:

Invest in time tracking systems. If your business began with yourself as the sole employee, you may not have planned for ways to track employee time. In terms of payroll processing, however, no step is more fundamental. Times scribbled on pieces of paper will not do and could bring severe legal risk. You should invest the money necessary to create or purchase a consistent and reliable system for tracking employee time.

Invest in payroll software. The tedious, repetitive tasks required to process your payroll is what computers were designed for. Purchase high-quality payroll software that is user-friendly and learn to use its features.

The fewer people involved, the better. Every person involved in processing your payroll adds a layer of complexity and additional potential for error. If at all possible, place one person in charge of payroll and make sure she has the tools she needs to do the job consistently and correctly.

Use direct deposit. Depositing employees pay directly into their bank accounts saves you the cost and hassle of printing and delivering checks.

Keep good records. This is a legal requirement in addition to a necessary step in simplifying payroll. Your payroll software should facilitate good electronic records, but you should keep paper copies of applicable reports and other records as well.

Plan for Common Errors

Not that you plan to make them, of course, but you should have policies in place to prevent common payroll errors and to quickly recover should they occur. And chances are, they will occur. The longer you are in business and the more employees you have, the higher your chances of error. The key is to take steps to minimize them. Here are some common payroll-related mistakes and what you can do to prevent them or limit their impact.

Missing IRS deadlines. When youre withholding taxes from employees pay, you are required to deliver that money to the IRS at least quarterly. The IRS is not amused if you miss a deadline; you will incur fines and penalties and possibly be subject to other legal action. Your payroll software likely includes a scheduling feature to alert you when a payment is due, but you should plan 2 or 3 additional layers of redundancy to ensure the correct amount goes out at the correct time. Your bank can help by setting up automatic payments.

Clerical or data errors. Ranging from loss of records to inaccurate data entry, innocent mistakes by payroll workers can be costly and time consuming. You can lessen the frequency and pain of such mistakes by having a consistent and meticulous payroll records system, ensuring your employees are thoroughly trained in all aspects of its use, and strictly enforcing policies designed to ensure accuracy.

Systemic errors. Your time tracking software can make mistakes; punch clocks can be inaccurate or smudge time/date stamps; electronic time records can be lost or corrupted. Though any type of electronic or mechanical equipment can be incorrect or fail altogether, the chances of such problems are greater if you seek to cut costs too aggressively by always buying the cheapest solutions. Remember the maxim: you get what you pay for. In the case of payroll-related equipment, you may get a lot more than you bargained for if you try to do it on the cheap.

Incorrect withholding. If you offer benefits to your employees, you might withhold insurance premiums, 401(k) contributions, and other amounts from employee pay in addition to the taxes required by law. If there are garnishments or other legal liens on employee pay, payroll processing becomes proportionally more complex. This is where high-quality payroll software is indispensable. If you calculate withholding manually, you will make mistakes in this area, and those mistakes can be costly.

With the large and growing number of regulations dealing with how employees are paid, the savvy business owner will explore all possible options. In such a high-stakes game, it makes good business sense to stack the odds in your favor by learning as much as you can about payroll processing and its potential pitfalls. You will probably learn that outsourcing your payroll to a PEO like Workforce Solutions is the least costly and most secure way to ensure that payroll complexity doesnt impede the growth of your business.

About the Author:
Visit http://www.wkforce.com for more information.

Restaurant Payroll

What You Need To Know About Starting A Restaurant

By: Mario Churchill

There are over 900,000 restaurants and eateries in the United States, and they serve more than 70 billion snacks and meals every year. You know a bit about food and wine, and you like people. Could you start a restaurant?

While it is a romantic idea, starting a restaurant is hard work. Do you know what permits you need? How much cash will you need to start a restaurant business? Where should you buy your supplies? How will you form your corporate structure? You need to learn the fundamentals of starting a restaurant.

Here are some answers to some pertinent questions about starting a restaurant.

What Corporate Structure Should You Choose?

There are 5 choices to choose from for corporate structure: a partnership, sole proprietorship, limited liability company, or a C corporation.

Setting up an LLC will protect you from personal liability, if you are sued by someone who has visited your restaurant, your personal property (house, cars etc.) cannot be touched. This is the best corporate structure for your restaurant and any small business.

A Lack of Qualified Labor.

This is one of the biggest challenges facing the restaurant business today. As the restaurant business continues to grow, the demand for qualified workers in a sparse labor pool is ever increasing. The rising labor costs and finding qualified workers are two of the biggest concerns for restaurant owners. You will need to decide the exact job description for each level of employee. You will need to define and outline clearly the duties and responsibilities for all jobs. You will need to list any special skills and other credentials for each job. You will need to establish a reasonable pay scale. Research what other, similar businesses are paying and go from there. There should be a minimum and maximum pay rate for each position. Waitresses are usually given a bit more than minimum wage, as they make tips in addition to their paycheck.

Startup Costs and Ongoing Expenses.

You will need to decide whether to start from scratch, or take on the remodeling of an existing restaurant. If you decide to start from scratch, you will spend anywhere from $100,000 to $300,000 to purchase cooking and ventilation equipment, freezers, refrigerators, tables, chairs, bar stools, counters and cutting stations, shelving, and heating and cooling systems. If you remodel an existing restaurant with the same concept will cost less. The rent may be a bit higher, but in the long run you will realize significant savings.

Managing Your Startup Budget.

Make sure you have enough money to purchase everything you need and get you through the first months after starting a restaurant, until you have a good positive cash flow. Shop around for your equipment and get the best possible prices. You may also want to check into used equipment or leasing your equipment. The cost of food will be about 25% to 40% of your revenue, depending on the concept of your restaurant. Payroll will be an additional 20% to 25%, and rent another 8%. You will probably come out with about 5% of the profits for yourself, if you are lucky. Even if you dont think you will need it, open a line of credit with your bank. You need to establish a good credit record, this will help if you decide to open another restaurant in the future.

About the Author:
Mario Churchill is a freelance author and has written over 200 articles on various subjects. For more information about starting a small restaurant checkout http://www.restaurantpitfallsandprofits.com/index.html .