How to Approach Your Business's Payroll and Taxes the Modern Way

2020 turned the economy upside down. No one expected a total lockdown, which hurt many businesses along the way. 

Due to increased anxiety, health worries, and lowered income, those who have survived now suffer from employee engagement issues.

Despite getting some help from the government with one-time payments and temporary tax relieves, business owners still have a lot on their plate and seek ways to optimize their approaches to payroll and taxation. So let's check what can be done here:

Direct deposit has been around for ages, and it's relatively easy to set up. It's convenient, fast, and doesn't require your employees to come into the office or deposit their check themselves by waiting for hours in a bank line. You can even create pay stubs instantly from your computer that will even limit adjustments on the accountant's end. 

As an employer, offering direct deposit simplifies the delivery chain and means less can go wrong during the payment process. There are plenty of unexpected circumstances that could arise, like your employee becoming ill, which could cause them not to receive payment. Plus, you're reducing costs and your ecological footprint.

There are plenty of personal reasons why your employee may not be able to open a bank account or has had their accounts closed without notice. This can pose a threat to your employees' lifestyle, but a payment card can remedy this issue. Similar to direct deposit, there is no delay in your employees' earnings or disruption to the payment process.

With almost 80% of Americans living paycheck to paycheck, it's important for employers to develop an on-demand solution that suits their employees. Employers can add to their employees' wallets daily to help ease the stress of waiting until the end of 2 weeks to see funds in their wallet, leading to less debt and a revolving credit card balance. 

Many businesses may consider adopting these measures but are worried about throwing out important papers that their employees will want to keep private. Or, they're concerned about the IRS and their need for paper copies of tax forms. Or, maybe you just need a way to inform your employees they have been paid without wasting paper.

If your employees want access to legally mandated notices, it can be done online and at their convenience. Employees can print these documents on-demand to put in their records or to use during tax time. A digital copy of their earnings also allows you to stay compliant with tax laws, as employees must have access to these documents.

If you have a direct payment option but don't have a digital pay stub equivalent set up, you can mail them to your employee's location. Or, HR or payroll can drive to their employees' home and drop their checks or pay stubs in the mailbox. Just e-mail or text your employees that you've made this drop-off, so they're aware you've delivered their paycheck.

When you're managing a group of either full-time, part-time, contract, or seasonal employees, it can get confusing during tax time. A modern payroll solution can quickly take care of these problems as long as you find one that suits your needs. Quickbooks is the most widely known, but ADP Workforce and Ceridian Dayforce are also strong contenders. 

Payroll software allows for integration, which means you can change information on the fly like payroll, paid time off, and personal information. You will also have an easier time scaling your company because of how easy this software can make the hiring process. Most commonly used software also has a knowledgeable customer service that can help you navigate the platform.