HR & Payroll Mistakes That Startups Make All Too Often!

HR & Payroll Mistakes That Startups Make All Too Often!

Startups are natural rule breakers; however, errors in payroll and human resources are far too common, and this is one area where businesses want to stay within the law. If you want to create the next Google, you have to upset some people and challenge the status quo. Payroll and human resources, however, are two areas where companies most definitely do not want to flout the law.

  • Paying Employees with Personal Finances
  • Misclassification of Employees
  • Managing Compliance With Payroll Services
  • Overpaying for Healthcare and Benefits
  • Complicating HR Services: see kaizen’s HR outsourcing blog to know more.

When your startup is fresh out of the gate, making unconventional or difficult financial decisions is frequently necessary to maintain the efficient operation of your business. Most of the common mistakes any startup makes are monetary, which is why they end up in enormous debt or worked up by taxes.

Payroll can seem like a daunting process, especially to new business owners who might be paying employees for the first time and who may be unsure of how payroll functions. So When paying wages, you’ll need to take care of the following tasks:

  • Make your staff fill out payroll forms (I-9 and W-4 for employee; W-9 for contractors)
  • Configure workers as hourly or salaried
  • Determine how often you want to get paid: weekly, bimonthly, semimonthly, or monthly.
  • Keep an eye on staff hours
  • Monitor employee advantages
  • Withhold taxes and pay taxes on time
  • At year’s end, distribute W-2s and/or 1099s.

If the process still seems odd to you, it’s your call to contact a payroll service provider to ensure payroll taxes are duly withheld, tax forms are accurately filled out, and taxes are promptly submitted to the right agency.

Several companies out there are making software to help automate this and guide your employees step-by-step. When picking your payroll management system, prioritize something that works like your employees: online. If you’re a Kaizen customer, you already know all of this.

Part 3 of Kaizen’s Payroll Management demonstrates the top software we use to make payroll management more practical and adjustable at any time.

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