Your Startup and Payroll Obligations
One of the biggest firsts that any company has is hiring its first employee. This is a huge obligation in terms of ethical, legal, safety, reporting, and tax obligations. If you can, you should hire a CPA to help you set up your payroll processing software. Even if you cannot afford a payroll processing service, it can be well worth it to ensure that whatever system you are using is set up correctly so that every future processing will be handled properly. Here are a few of the things a CPA will schedule for a new employer to complete:
Each Payday:
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Review the previous payroll activity with fresh eyes. Sometimes things do not seem proper with hindsight.
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Verify that you are using the accurate tax tables. Many software applications will apply the proper rates if you ensure the software is using the most accurate tax tables.
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Review current payroll.
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If necessary, print paychecks and paystubs.
Quarterly
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Review the entire quarter’s payroll.
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Run reports on payroll. Run it for the quarter, the year, and the previous year. This step can help you evaluate the accuracy of your payroll as well as the health of your business.
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Complete payroll tax returns. In Texas, those will be your Federal Form 941 and Texas Workforce Commission C3.
Each January
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Review the entire past year’s payroll reports.
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Run payroll reports for the year.
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Process all your tax returns. Submit W2 or W3s, Federal Forms 941 and 940, state tax forms.
