When you are running a home business, you may be fortunate enough to find yourself needing employees. While this means your business is expanding, it also can be a real headache when it comes to setting up the payroll. Here are payroll tips for running a home business.
Hire an Accountant
The quick and easy way, of course, is to hire an accountant. There are many accountants who have their own home businesses, simply because they can control their workload. For a reasonable price, you can hire someone to do all of the paperwork. Your accountant will tell you what to do during the month to keep the paperwork neat and ready for payroll.
The prices are actually pretty competitive between payroll bureaus. These are not usually private citizens who work for themselves. Keep in mind, though, that the bureau may have many customers with strict deadlines. You may or may not be subject to some of these deadlines. In other words, you may not get the personal consideration you would from a private accountant, but you may save some money.
Get a Guide
You can also get a guide from HMRC, or HM Revenue & Customs. This guide is called PAYE, and will tell you what your responsibilities are as an employer. There is even a helpline that is open 12 hours a day during the week, and until 4:00 on Saturdays.
HMRC Payroll Scheme
The HMRC payroll scheme is available online. You will need to have some comfort level with computers in order to do this, but if you are reasonably confident with using the computer, this scheme provides the software for use. To sign up for the HMRC scheme, you will have an Employer PAYE reference, as well as an Accounts Office reference.
Off-the Shelf Payroll
There are a number of off-the-shelf programs available for small business payrolls. You can get advice from an accountant, or shop online or in the store for a software program that suits your needs.
HMRC provides training in dealing with online filing. You can call their helpline at 08457 143 143 to get an idea of where and when these presentations will be provided. There, you can get valuable information about handling payroll for a home business.
Choose a Pay Scheme
How are you going to pay your employees? Most of them work to receive pay per hours worked. However, some payment schemes are based on incentives.
With an hourly wage, the employee will be able to quote a yearly salary, often collecting overtime, as well. Usually, this type of payment scheme is easier to maintain. It also gives you, as the employer, the ability to monitor the employees’ progress and quality of work.
The other payment scheme that is most common is that of incentives. The employee may work on commission, or for a percentage of sales. These, however, are harder to maintain, and may cost more.
With training, the right software, and some help from professionals, you can take care of payroll for your home business.