Your employees are very important to the successful operation of your business. Without them you may not have been able to expand, grow or develop your business. Your employees are oftentimes just as important as the operations of your business. Speaking of business operations, payroll expenses and legalities are even more important when you have employees. As a business owner you should follow, this small business owner's guide to payroll expenses and consider it your one-stop guide on all the ins and outs when it comes to these expenses.
Payroll is the total amount of money that has been paid by your business to your employees over a period of time. Regardless, if you have taken taxes out or not. The payroll expense taxes are the taxes that are levied by a government agency, local, state or federal on your employees’ wages, tips and other compensation.
There are also legal requirements and obligations business owners must adhere to. These legal requirements ensure the business owner and employee are paying their fair share of local, state and federal required taxes, which helps support education, urban development projects and many necessary government programs that would be in jeopardy. It is important to understand how to set-up payroll accounts, manage those accounts and understand the legal requirements of payroll accounts.